NUNDAH CONTINUES RISE AS RENTAL HAVEN
Written on the 10 March 2016
NEW research shows Nundah is unlikely to relinquish its title as a rental hotspot anytime soon, with the Brisbane suburb recording long-term growth and consistently tight vacancy.
Resolution Research Strategists' Nundah Suburb Profile highlights Nundah's ongoing gentrification and high accessibility to key hubs as the main factors in its popularity.
The report reveals one-bedroom rents in Nundah have soared $55 per week while two-bedroom rents are up $40 a week.
"Over the past five September quarters, the growth in median weekly rents across Nundah's one and two-bedroom apartments has been compelling," the report says.
The average gross rental yield across the area's apartment market is a healthy 5.2 per cent, while 55 per cent of all dwellings in the area are occupied by renters and vacancy at 2.8 per cent.
"With a vacancy rate of 3 per cent generally accepted as being representative of a balanced rental market, the prevailing vacancy rate in Nundah points to a rental market in a state of undersupply," says the report.
Long-term analysis of Nundah's vacancy rate reveals that it has sat above 3 per cent on just four occasions in the past three years.
The report points to Nundah's significant urban renewal and its proximity to Queensland's largest employment hubs Brisbane CBD and the Australia Trade Coast - and to major transport infrastructure as factors in its popularity.
"It is one of Brisbane's most accessible suburbs with important linkages with Brisbane's major employment and retail nodes," it states.
The report said residential demand was also underpinned by the large number of tertiary students attending institutions surrounding Nundah.
It predicts that the centrally located Nundah Village precinct will be an area of concentrated future population growth.
Property Solutions sales and marketing manager Craig Wright says people were responding to Nundah's ongoing gentrification as new residential and retail options, including his company's Circa Nundah Village complex, were delivered in the area.
He says the latest stage of the developer's Circa Nundah Village complex are renting more rapidly with higher rents compared to the previous stage.
"Central pockets like Nundah close to services, amenities, employment and the city will grow in popularity," Wright says.