Brisbane’s increase of apartment infrastructure is creating a higher supply than demand, resulting in lower rent prices according to a Brisbane real estate agent.
Ray White Capalaba Real Estate Agent Jack Thomas said Brisbane’s real estate market is growing, with an increase in competition for rental apartments and units.
“At the moment, there has been a 20 to 60 dollar on average weekly drop on individual rental apartment prices in some areas,” Mr Thomas said.
He explains that the increase in the number of Brisbane apartments is forcing investors to drop their prices to compete with the oversupply of new and lower priced apartments.
Mr. Thomas said there is a higher supply than demand for units and apartments that are located within and around suburbs of the Brisbane CBD.
“From my experience, the areas that are most affected by higher supply also include surrounding suburbs of universities,” Mr Thomas said.
“The areas that are currently most affected by the price drop include: South Brisbane, West End, Clay field, Nathan and Mount Gravatt.
“Over supply might be caused by preparations for the increasing need of student accommodation and housing developments.”
Tourism student at Griffith University, Azada Forotan said the oversupply works to the benefit of students as it offers wider more affordable selections, particularly for those struggling to afford rentals near university.
“The lower prices are great for youth in Brisbane, it means we don’t have to compete with those of a higher income for properties.
“It helps because we can afford to live closer to uni and save time on our daily commute.
“Students are constantly moving backward and forward from Universities and city centres, that’s where this growth becomes a positive for us,” Ms Forotan said.