Rental Market Update

Brisbane's Rental Market Remains Tight Amid Slower Capital Growth

After a strong run of capital growth, Brisbane’s property market is shifting gears — but the rental market is showing no signs of cooling.

According to CoreLogic’s May HVI report, Brisbane dwelling values rose by 0.4% in April and 1.0% over the rolling quarter, taking annual growth to 15.7% — the second-highest among capital cities, just behind Perth. While capital growth is moderating, Brisbane remains one of the most resilient housing markets in the country.

But the more pressing story right now? Rental market pressure.

Signs of Softening in Inner Brisbane Suburbs

On the ground in inner Brisbane, we're beginning to notice some softening. After several years of significant rental increases, rents in many central suburbs are now starting to plateau. In some cases, when rental prices have been increased during the leasing process, we've found that properties are sitting longer on the market, and we're needing to reduce prices back to previous levels to secure tenants. This is reflective of the accumulated pressure from multiple rent rises over recent years.

Seasonal trends are also playing a role.

With June and July approaching — typically a busier period with more tenants actively searching — we may see some further upward movement in rents. However, it will also be a real test of the market, as demand levels and tenant budgets will play a key role in determining leasing outcomes.

A Supply-Demand Crunch Still Driving Broader Market Strength

Across Brisbane more broadly, rental yields remain strong, especially in middle-ring and outer suburbs where demand is deeper. A combination of high population growth, limited new housing supply, and affordability challenges continues to underpin demand in these areas.

Well-located, tenant-friendly properties held with a long-term strategy are still performing well. However, in the inner city, the landscape is shifting — and the focus may now need to move from aggressive rent increases to maintaining strong occupancy and minimising vacancy.

We thank you for your ongoing support and as always, if there’s any way we can support you in your property journey don’t hesitate to get in touch.