Rent roll values are rising again and I believe the signals are good for continued growth. Supply has slowed, demand has increased, the real estate market is improving and the oversupply of real estate agencies has now corrected itself to a certain degree.
Rent roll multipliers certainly took a hit over the past 18 months with some regions fairing worse than others.
The Inner North Brisbane market faired the best. At the moment, Inner North rent rolls are the most sought after market and are almost back to their peak. There is high demand and little supply. This is no surprise as it was also, I believe, the least effected market regarding property prices over recent times and generally was least affected from flooding in comparison.
The inner city market hasn’t quite returned to peak level however remains in high demand and if the rent roll is in good quality should achieve an excellent sale price.
There is no sales data for booming mining regions such as Gladstone and Emerald making it difficult to factually understand its market however values will be strong in these regions also.
Buyer enquiry has certainly increased in 2012. Principals have acknowledged that their Property Management department was vital to the businesses survival over the past 2 years and it was this cashflow that allowed wages and accounts to be paid.
Therefore now Principals are looking to bolster this department within their agency and are on the lookout for any available rent rolls to generate greater income, profit and future sustainability.
Enquiry for offices is increasing as new players look to enter the market. There are new brands continuing their expansion plans into certain areas.
If you would like to know more about what is happening in your market contact Kevin Hockey on 0413 879 986 or email firstname.lastname@example.org