City could be stepping stone to Surat Basin
A REAL estate analyst believes Ipswich could become a "stepping stone" to the Surat Basin.
Domain real estate economist Dr Andrew Wilson said Ipswich's rental prices and its proximity to Brisbane placed it in a strong position to take advantage of growing rental prices in Toowoomba.
The Domain Group September Quarter Rental Report, released today, found the cost of renting houses in Ipswich remained steady on the previous year, although the price to rent a unit increased.
The median cost to rent a house in Ipswich is $330 a week, up $10 from last quarter, with median unit rental prices also increasing since last year.
The median rent for a unit in Ipswich is $270 per week, up from $265 last quarter and $260 last year.
Dr Wilson said the Ipswich market relied heavily on Brisbane's economy.
"Ipswich's position obviously is as an affordable appendage to Brisbane," he said.
"A lot of first home buyers or those that are looking for more affordable accommodation look at Ipswich.
"But the thing working against it is that the Brisbane economy is still a little problematic.
"Unemployment rates are still gravitating around 7%.
"Higher unemployment rates always impact budget markets and it's no surprise that it's the Brisbane budget markets that are underperforming at the moment."
However, Dr Wilson said Ipswich could look west to Toowoomba as well as to Brisbane.
"Now Toowoomba's become quite expensive for those that are looking to work in the Surat Basin," he said.
"I think Ipswich to a certain degree has become another stepping stone into that particular economic area, as well as being a more affordable option for Brisbane buyers and those that want to commute into Brisbane."
The rental report said nationally, the median asking rent for units decreased 0.4% over the September quarter to be up 1.9% over the past 12 months.
Meanwhile, the median asking rent for houses decreased 0.3% over the quarter, contributing to annual growth rate of 0.7%.
HOW DID THE RENTAL MARKET CHANGE LAST QUARTER?
- There were 1704 rental houses and 203 units listed in Ipswich over the September quarter.
- The median weekly asking house price in Ipswich was $330.
- The median weekly asking unit price in Ipswich was $270, up $10 from last year.