The price of rent in some Logan suburbs is forecast to increase by nearly 30 per cent by October this year, according to a new report.
Experts behind the report have urged tenants to aim towards owning their own homes before the 2032 Brisbane Olympics to secure stability.
Real estate analytics firm Suburbtrends predicted several suburban areas in the greater Brisbane area would see “substantial rental increases”.
The highest increases will be to Browns Plains, Rochedale South and Priestdale – which are predicted to see rents surge by 29 per cent by October.
Daisy Hill, Logan Central, Marsden, Loganlea, Slacks Creek, Bethania and Waterford have anticipated increases of 21-22 per cent.
Buyer’s agent and property investment adviser Lauren Jones said Logan suburbs topped the list because they were “starting from a lower base”.
“Many of these Logan suburbs had a much more affordable price point, and due to high demand, the prices have gone up,” she said.
“Vacancy rates in many of these Logan suburbs are also very low, especially those with higher rates of owner occupiers.
“With the influx of interstate migration, the rental market is tightening more than ever.”
Ms Jones said Suburbtrends’ forecasts meant many renters would see a “significant price increase” at their next lease renewal.
“If the renters are not able to afford the increase, it may mean they will need to move out into a more affordable suburb, or a smaller home/older home in the same suburb,” she said.
On the other hand, the forecasts should incentivise more investors to enter the property market “in the hopes of making a stronger rental return, with less vacancy period”.
“It is also an incentive for landlords to continue holding their investments,” Ms Jones said.
“This is overall generally a good thing for the rental market – more investors buying in, and more landlords holding onto investment properties means more supply.”
The main issue is driven by supply not meeting demand, Ms Jones said.
“Eventually, once the homes are no longer affordable for those living in the areas, the rental growth will have to slow, as there will not be the demand.”
In the long run, Ms Jones said renters in the area should explore “all avenues” to break into homeownership before the Brisbane Olympics in 2032.
“This could be a strategic move to secure long-term housing stability amidst escalating rents.”
