Reduced investor lending creates hot rental market in Toowong and Taringa
Hot rental market in Toowong and Taringa
Stricter lending policies following the banking royal commission has seen fewer investors active in the Brisbane housing market. In a recent article published by the Sydney Morning Herald, investor lending had fallen by 27.4% since it reached its peak in 2015, demonstrating that the effect of credit tightening is becoming more apparent.
Throughout Brisbane’s inner-western suburbs, including Toowong and Taringa, a drop in investor activity has led to a shortage of quality homes in the rental market. As investors are being more cautious, the flow on effect is gravitating towards a tighter rental market.
Evidence of this can be seen in the increasing number of tenants who are contacting us directly in search of rental properties. These tenants tend to be families looking for good quality homes throughout St Lucia, Toowong and Indooroopilly and usually have a budget of $800pw or more.
Despite their impeccable tenant applications, these tenants are struggling to secure suitable housing because of the limited supply of properties available. 85 Gower Street, Toowong was recently leased off-market to a family relocating within the area. The beautifully presented, four bedroom home achieved $875pw with minimal downtime for the landlord.
In Taringa, a three bedroom townhouse at 4/123 Indooroopilly Road again proved that competition among tenants was on the rise. The property received three applications and lasted just two days on the market before it was leased at $520pw.
Another factor driving demand for Brisbane’s inner-western rental market is the area’s median sale price. As of the last quarter, Toowong’s median house price is resting at $840,000 while Taringa sits at $890,000, Indooroopilly at $905,000 and St Lucia at $1.1M. Unattainable price ranges for those starting out in the housing market.
As a result, more young families are choosing to lease properties for longer, rather than buying their first home as they traditionally would have in the past. The unaffordability of these sought-after suburbs is pushing more tenants into rental properties and driving demand for quality housing.
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