Rental property bidding wars
Published October 22nd, 2006
DESPERATE house hunters are prepared to enter bidding wars to get into southeast Queensland’s fiercely competitive rental market.
It is now commonplace for would-be renters across the region to offer more than the asking price for a property.
Housing advocacy group National Shelter said some rental applicants in Queensland were now being gazumped – a disturbing trend at a time when a tight property market and long waiting list for public housing have fuelled a homeless crisis.
According to the latest State Government figures, the vacancy rate for rental properties around Brisbane is 1.7 per cent, falling to 1.3 per cent in the inner city.
“There are kind of informal rental auctions going on,” said National Shelter chairman Adrian Pisarski. “A property might be advertised at a price but with an open house around it and then as people are coming through, they may be asked if that is their best offer.”
Mr Pisarski said the emergence of bidding wars for rental properties was contributing to increased homelessness, even among families with young children, with some forced to live in tents and caravans.
“We do have a desperate situation, particularly for those low-income earners and they’re the ones who are going to end up homeless,” he said.
Rental property manager Barbara Walker said that while she did not accept offers above the asking price, it was certainly becoming more popular for renters to offer above the asking price.
“If I advertise a property at $350 a week, many a time people say to me, ‘look Barb we’re prepared to pay an extra $20 to get it’,” Ms Walker said.
“It’s like a dutch auction.”
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