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EP 237 – Brisbane Rental Market Update with Corinne Bohan from Image Property

Dec 4, 2024

Brisbane Rental Market Update: Insights from the Brisbane Property Podcast

The Brisbane rental market continues to evolve, and the latest episode of the Brisbane Property Podcast dives deep into the key trends shaping the landscape. Hosts Scott and Melinda Jennison are joined by Corinne Bohan, Managing Director of Image Property, and in this Brisbane Rental Market Update, together they explore what’s been happening on the ground in 2024. With nearly 5,000 properties under management, Corinne provides a unique perspective on tenant behaviour, landlord challenges, and the broader dynamics of the Brisbane rental market.

Key Trends in Brisbane’s Rental Market

1. Surging Demand for Units:  Brisbane has seen a significant shift in demand towards units, largely driven by affordability concerns. Houses, particularly larger ones with backyards, have become less accessible for many renters. Units are now offering a more cost-effective and low-maintenance alternative, making them an increasingly attractive option. In this Brisbane Rental Market Update, Corinne highlighted that:

  • Median rents for units have risen notably in the past 12 months.
  • Suburbs previously considered affordable are now commanding surprisingly high weekly rents.

2. Changing Household Composition:  Affordability pressures are reshaping how people live. Brisbane renters are increasingly adopting shared living arrangements, such as:

  • Professional couples taking in a flatmate.
  • Multi-generational households combining resources to share costs. These shifts are redefining household structures and driving demand in different market segments.

3. Geographic Rental Trends: Brisbane’s high-rent zones are expanding geographically. Areas once considered affordable are now experiencing substantial rental growth as tenants are pushed further out from the CBD. This ripple effect highlights the growing challenges renters face in securing properties near key amenities and workplaces.

 

Legislative Changes and Their Impact on Landlords

Recent tenancy law changes in Queensland have added complexity for landlords, requiring them to stay informed and proactive. In this Brisbane Rental Market Update, Corinne discussed key updates, including:

  • Minimum Housing Standards: Landlords must meet stricter requirements to ensure properties are safe and liveable. While these standards benefit tenants, they increase maintenance costs for property owners.
  • Rent Freeze Rules: Rent increases are now capped within a 12-month period, even if the property transitions between tenancies. This change impacts how landlords calculate returns and manage cash flow.
  • Break-Lease Clauses: A clearer, formula-based approach to break-lease costs has provided greater transparency but increased administrative requirements for property managers.

Corinne emphasised the importance of landlords partnering with professional property managers to navigate these legislative shifts effectively. Without expert guidance, landlords risk non-compliance, financial loss, or tenant dissatisfaction.

Affordability and Lifestyle Factors Driving Tenant Choices

Affordability remains a dominant factor influencing tenant behaviour in Brisbane. Corinne noted in her Brisbane Rental Market Update, that many renters are opting for units closer to the CBD, drawn by:

  • Proximity to work and amenities.
  • Modern apartments offering high-quality features like rooftop pools and barbecue areas.
  • Enhanced security, which is increasingly important for tenants.

Interestingly, interstate migration is also contributing to the popularity of units. Renters from cities like Sydney and Melbourne, where apartment living is more common, are finding Brisbane’s larger, better-equipped units appealing.

Brisbane Rental Market Update – Investor Sentiment and Market Outlook

From an investment perspective, Brisbane remains a standout market. Corinne highlighted several key points:

  • Interstate investor interest has surged, with many seeing Brisbane as a viable option for strong returns.
  • Despite rising interest rates, properties with solid rental yields, especially units, can often achieve neutral or positive cash flow when well-managed.
  • Long-term infrastructure projects, such as preparations for the 2032 Olympics, are bolstering investor confidence in Brisbane’s growth potential.

Corinne urged investors to focus on understanding the demographics of their target suburbs. For example, properties in areas like St Lucia will naturally attract university students, and landlords should align their expectations accordingly.

Practical Advice for Landlords

Corinne shared actionable tips for landlords navigating Brisbane’s rental market in 2025:

  • Proactive Maintenance: Regularly servicing properties, from air conditioning units to garden upkeep, not only maintains value but also enhances tenant satisfaction and retention.
  • Understand Your Obligations: Stay informed about tenancy laws and ensure compliance to avoid disputes or penalties.
  • Work with Professionals: Engaging experienced property managers helps landlords maximise returns while minimising stress.

Tenants are increasingly expecting premium service for premium rents, so maintaining properties to a high standard is key to attracting and retaining quality tenants.

Outlook for the Brisbane Rental Market

Looking ahead, Corinne predicted that Brisbane’s rental market will remain tight for the next 12-24 months due to ongoing supply constraints. Population growth, driven by interstate migration and infrastructure projects, will continue to fuel demand. While rental increases have plateaued, affordability pressures will likely persist, pushing more renters towards shared living arrangements and unit accommodation.  We will invite Corinne back for another Brisbane Rental Market Update in 2025.

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This Brisbane Rental Market Update episode of the Brisbane Property Podcast is packed with expert advice for landlords, tenants, and investors navigating the dynamic Brisbane rental market. To stay informed and gain actionable insights for your property journey, subscribe to the podcast:

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