Brisbane rental prices are set to surge as thousands of displaced flood victims rush to find accommodation, market analysts say.
Demand for rental properties close to flood-affected suburbs could soar in coming months and push prices up 10 per cent according to the Sydney Morning Herald.
“It’s a simple matter of supply and demand,” Cameron Kusher of RP Data said.
“It’s not unlikely for rents to increase 10 per cent as a result.”
The demand for furnished properties close to the CBD will be even higher, he said, although such houses and units typically account for just 5 per cent of the market.
According to RP Data the median weekly rent in greater Brisbane in the three months to December last year was $365 for houses and $350 for units.
Reports have already emerged of landlords in suburbs closest to the flood zone are now asking for more than $400 per week.
“Unfortunately there is not a lot of scope for tenants to negotiate,” Mr Kusher said.
Those fortunate enough to have adequate flood insurance may be able to claim their rent costs.
Vacant properties could absorb the initial influx of flood victims, but the vacancy rate in Brisbane remained less than 5 per cent last year, according to RP Data.
Mr Kusher said displaced flood victims would need to compete for rental properties against the traditional influx of university students at this time of year.
“It couldn’t have happened at a worse time,” he said.
“Flood victims can only stay with family and friends for so long. When they realise the repair of their home will take up to 12 months in some cases they will need to look for rental accommodation and often they will be forced to take whatever they can find.”
SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
PREFER TO SUBSCRIBE VIA EMAIL?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.