New Farm and Teneriffe Market Stats + Tips for Better Returns
At last count there were 4793 bonds held for apartments in New Farm (4005).
That’s roughly half of the number of bonds held for apartments in 4006 (Newstead/Teneriffe).
These numbers make sense, considering the recent building surge in Newstead, resulting in a wave of rentals hitting the market.
Over the last 2 years, the number of bonds in Newstead has risen from 5,200 in 2016 to 8,579 this year, while in New Farm, numbers have been stable for the same time period.
Interestingly, from 2016-2018 the median rent for New Farm for a three-bedroom apartment has fallen from $690 in 2016 to $620 this year. Conversely, Newstead’s average rent for a three-bedroom apartment has stayed stable in the same time period – hovering at $620 pw, despite the influx of rental apartments in the area.
So how do New Farm landlords compete with newer apartments and stabilise their rental income?
Combining the above info with low vacancy rates in Inner City Brisbane (see graph above) we’re currently experiencing, perhaps you don’t need to do much at all, but the following info may interest you.
A modern apartment is more appealing to tenants, reducing the need to discount rents. Tenants will spend more to have newer kitchens and bathrooms.
Sometimes all that’s needed to freshen a rental apartment or house is new carpet and blinds, fresh paint or new kitchen cabinets or bathroom fittings.
The other benefit to a landlord is your tenant may be more willing to stay longer than 12 months (more people are renting for longer), thereby saving you re-let fees and marketing expenditure – adding to better returns for you.
Students are another market to consider at the lower end of the rental market. Their standards have also risen – looking for comforts they’ve always enjoyed with their parents.
To conclude, New Farm landlords who wish to compete with the newer apartments in nearby suburbs may consider a freshen up of their properties, because tenants do want smaller, boutique apartment buildings that are close to the great amenities New Farm has to offer.