RENTERS are moving closer to the city in a bid to cut down on travel times and avoid traffic congestion, according to research by property analyst Michael Matusik.

Vacancy rates for houses in inner Brisbane have tightened from 4.2 % to 2.5% in the past year. Apartments and townhouses in the same area have a vacancy rate of just 1.9% - down from 4.2% last year.

In all analysis of Queensland Rental Tenancies Authority data, Matusik Property Insights found the best performing rental suburbs for three-bedroom houses were in New Farm and Teneriffe, where the median rent for a three bedroom house jumped $60 a week to $340 a week over the past year. Other strong past performers were East Brisbane and Kangaroo Point where the median rent rose $40 to $300 a week. But one of the best rental performers was well to of the inner city- Jimboomba’s median rents rose $55 to $265 a week for a three-bedroom house.

Across the state, the vacancy rate for detached houses was 2.5% down form 3.8% last year; and for attached dwellings the vacancy rate was 2.6% down from 3.9% in 2003.

Mr. Matusik said no post code area across southeast Queensland had a fall in median weekly rentals.

Among the worst-performing rental areas for the year for three-bedroom houses in southeast Queensland was Kippa-Ring, where the median rent remained unchanged at $220. Capalaba, with a $230 median rent, and Mount Cotton/Redland bay, with a median $230, were likewise unchanged.

The report said a drop in demand to rent in Brisbane’s outlying areas reflected a declines in net migration to the state over thee past 12 months or so. Net Migration to Queensland has declined by 15%, from 66,300 to 56,400 people in the past 12 months. The report attributed the tight vacancy rate for apartments for apartments and towh houses, to a trend of people looking for more security and less maintenance. “ We believe new apartments which provide sharing tenants with complete privacy…their own bedroom, bathroom, walk-in rove space and study area, should attract a high premium.� The report said.

The best performing areas in southeast Queensland for two bedroom apartments included Graceville and Sherwood, with a $40 median rental increase to $210. Mount Gravatt and Mansfield records a $35 increase in rent to $310 a week for a two bedroom property.

Article provided by Courier Mail: February9th 2005 – Melissa Maugeri