Rents to Rise, Values to Fall as a Consequence of Queensland Floods
Place Estate Agents Damian Hackett said vacant properties on his company’s rent roll were being quickly filled, as residents became desperate for accommodation.
“There are people phoning up saying we will take anything sight unseen,” he said.
He doesn’t anticipate landlords will take advantage of the flood situation, but warned price pressure might start renter-driven price wars.
According to research house RP Data, Brisbane’s residential vacancy rate was 3.5 per cent. It was 3.4 per cent for the inner west.
Meanwhile, it’s speculated owners of more than 1000 unsold, unfinished or yet to be started apartments along the Brisbane, will need to be offered with discounts of up to 50 per cent, to find a buyer.
The Australian reports at least $800 million in apartment projects along the Brisbane River have been damaged by the floods.
Ray White chairman Brian White said after the 1974 floods, confident for riverfront properties was regained, after it was believed the Wivenhoe Dam could prevent a similar event happening again.
At that time, according to Mr White, real estate values took about six years to recover to pre-flood prices.
