Top-end rental mar­ket faces tough fu­ture as ex­ec­u­tives opt to leave city

The Courier-Mail - Property - - REALESTATE -

THE days of south­ern­ers mov­ing to Queens­land to live and work may be over, with the top end of the res­i­den­tial mar­ket now un­der pres­sure as high-fly­ing jobs dis­ap­pear from the Bris­bane CBD.

A top econ­o­mist from one of the Big Four banks has warned that Bris­bane was fac­ing a 20 per cent com­mer­cial va­cancy rate in the CBD which has flowed through to the res­i­den­tial mar­ket.

Own­ers of top-end prop­er­ties have been forced to sell homes or drop rental ask­ing prices as high-fly­ing ex­ec­u­tives choose to move rather than take a pay cut to re­main in Bris­bane.

CBA chief econ­o­mist Michael Work­man warned that the dis­ap­pear­ance of whitecol­lar jobs would have a di­rect im­pact on the high-end prop­erty mar­ket.

“The up­per end of the labour mar­ket, in terms of in­come lev­els, most of those peo­ple have white-col­lar well-paid jobs that would be in the city, but I think the va­cancy rate in the CBD in cen­tral Bris­bane is headed to­ward 20 per cent,” Mr Work­man said.

“That is telling you that there has been sig­nif­i­cant loss of those quite highly-paid jobs and that does af­fect the prop­erty mar­ket.

“Peo­ple in the higher paid jobs would tend to kind of make the de­ci­sion to move in­ter­state to get another job at the sim­i­lar level rather than to take a pay cut and stay.”

Jen­nifer Grainger of SPACE Prop­erty Agents said the lack of ten­ants was af­fect­ing “all leas­ing in all price ranges”.

“There are less peo­ple com­ing here,” she said, with most ex­ec­u­tive ten­ants now lo­cals who were be­tween houses – be­cause of ren­o­va­tions or hav­ing just sold their own home.

“The rental prices have dropped prob­a­bly maybe 20 per cent. It’s been huge.”

Ms Grainger said those priced right were rent­ing within four to five weeks.

“If any­body has got over­priced prop­erty now is the time to re­align pric­ing. It will be pick­ing up in Au­gust, Septem­ber,” she said.

Pe­dro Wil­liams of the newly re­lo­cated BM Pres­tige Au­to­mo­tive in Bowen Hills has been to 15 ex­ec­u­tive rental homes in the past two months. He hopes to se­cure some­thing for around $1200 a week.

“In Bris­bane it’s ei­ther you live in an apart­ment, or a house with five bed­rooms. There’s a lack of ap­pro­pri­ate prop­er­ties for younger cou­ples without kids that do want to live in a house,” he said. “In­stead of a nice master bed­room suite … you’re hav­ing to share the space that’s sup­posed to be the master with three bed­rooms that you will not be us­ing.”

He said Bris­bane needed some­thing in the mid­dle of apart­ments and larger ex­ec­u­tive houses.

“It’s hard for us to change the qual­ity of the house we have at the mo­ment for some­thing around the city for dou­ble the price,” he said.

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