Apartment completions in Brisbane are set to peak in 2016/17 financial year... Tenants take advantage of Perth's rental conditions...
Inner city Brisbane home to "excess of rental stock": BIS Shrapnel
Apartment completions in Brisbane are set to peak in 2016/17 financial year, however they will remain at elevated figures until at least 2019 according to new research from forecaster BIS Shrapnel.
Released this week, BIS Shrapnel’s latest brief for Brisbane’s apartment market has revealed that the record 2015/16 total of around 3,250 apartment completions will soon be topped as continual demand from investors drives supply.
“Based on the current pipeline, completions are on track to peak in 2016/17 at over 7,000 apartments, of which investor owners will continue to form the bulk of underlying demand,” the brief said.
“Relatively less expensive apartment prices, and more attractive rental yields compared to their respective home markets, is likely to sustain demand for IBA stock from investors in Sydney and to a lesser extent, Melbourne,” the brief said.
According to BIS Shrapnel, the inner Brisbane market will see work completed on of 7,182 apartments in 2016/17, 6,468 apartments in 2017/18 and 5,497 apartments in 2018/19.
Tenants take advantage of Perth's rental conditions
Perth’s weak rental market is being exploited by tenants who are using current market conditions to move away from shared accommodation.
Analysis of leasing activity in Perth over the March quarter by the Real Estate Institute of Western Australia (REIWA) has revealed leased one-bedroom apartments increased 50% during the March quarter, while leased two- and three-bedroom apartments increased 18%.
REIWA president Hayden Groves said the movements over the March quarter showed tenants are taking advantage of Perth’s current rental climate.
“There was a significant amount of leasing activity in the one to three bedroom market over the quarter, while four and five bedroom properties experienced a small decline,” Groves said.
“Affordability in Perth’s rental market has improved over the last 18 months, tenants who may have been living in shared accommodation are now finding that they can afford to move out on their own, which is why we’re seeing this shift to smaller households,” he said.
Apartment completions in Brisbane are set to peak in 2016/17 financial year, however they will remain at elevated figures until at least 2019 according to new research from forecaster BIS Shrapnel.
Released this week, BIS Shrapnel’s latest brief for Brisbane’s apartment market has revealed that the record 2015/16 total of around 3,250 apartment completions will soon be topped as continual demand from investors drives supply.
“Based on the current pipeline, completions are on track to peak in 2016/17 at over 7,000 apartments, of which investor owners will continue to form the bulk of underlying demand,” the brief said.
“Relatively less expensive apartment prices, and more attractive rental yields compared to their respective home markets, is likely to sustain demand for IBA stock from investors in Sydney and to a lesser extent, Melbourne,” the brief said.
According to BIS Shrapnel, the inner Brisbane market will see work completed on of 7,182 apartments in 2016/17, 6,468 apartments in 2017/18 and 5,497 apartments in 2018/19.
Tenants take advantage of Perth's rental conditions
Perth’s weak rental market is being exploited by tenants who are using current market conditions to move away from shared accommodation.
Analysis of leasing activity in Perth over the March quarter by the Real Estate Institute of Western Australia (REIWA) has revealed leased one-bedroom apartments increased 50% during the March quarter, while leased two- and three-bedroom apartments increased 18%.
REIWA president Hayden Groves said the movements over the March quarter showed tenants are taking advantage of Perth’s current rental climate.
“There was a significant amount of leasing activity in the one to three bedroom market over the quarter, while four and five bedroom properties experienced a small decline,” Groves said.
“Affordability in Perth’s rental market has improved over the last 18 months, tenants who may have been living in shared accommodation are now finding that they can afford to move out on their own, which is why we’re seeing this shift to smaller households,” he said.
