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Ray White auctioneer Haesley Cush.
There has been a lot of talk about renting versus buying and that in much of the country it is cheaper to buy rather than rent. But this is a national story and to drill down to Queensland, and even further to Brisbane, you need to peel back a few layers.
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Firstly, the Brisbane rental market took a hammering about six years ago. Largely due to the release of a number of inner-city apartment buildings at the same time. This caused an influx of vacant properties and many developers had guaranteed the rent so they were chasing tenants at any cost. I remember talking to landlords at the time about dropping their rent to secure a tenant. Some landlords were offering tenants rent free incentives and there were even owners in the market giving away other gimmicks like free iPads! All of this caused rents to take a nosedive.
Post the GFC, Queensland coastal regions and Brisbane property prices also crashed.
From this low base, we were due an increase in both rental and sale prices.
The COVID-19 bubble saw all property markets move and Brisbane was due an increase anyway.
The recent flood event combined with interstate migration has seen more tenants than properties available for rent, causing rental prices to rise. Rents will always peak when supply is outstripped by demand.
Renters inspecting a property in the north Brisbane suburb of Kedron in May. Picture: Richard Walker
This recent interest rate rise and the ones that will follow are about returning to a more normal lending rate.
Cheaper to buy a house than rent in over half of Queensland’s suburbs
The price recorrection is also about getting our markets back on track. With banks still offering low rates, you likely should be buying but because it makes sense long term, not just because it’s cheaper today.
* Haesley Cush is an award- winning auctioneer who has called more than 10,000 auctions. He co-owns Ray White New Farm, East Brisbane, Spring Hill, Bulimba, Toowong and Clayfield plus Living Here Cush Partners.