The market hit a significant milestone in 2025 when Queensland’s median weekly rent hit $600.
That won’t surprise you because your office is regularly leasing properties at far more. But remember this is the RTA’s stats for ALL new bonds lodged right across the whole of the state. From the back streets of Mount Isa to beachfront Noosa.
So this is a really big number! And naturally the leap has had an impact on your rent roll’s valuation.
We can’t publicly celebrate rising rents because we’ll be labelled as greedy agents. But have a look at the graph below and here’s some simple facts:
In 2012 the state’s weekly rent was just $342. And yes we spent almost a decade with hardly a blip in that graph: as late as June 2021 median rents were still under $400. (No-one ever talks about this when the rioting mobs are coming for agents and landlords with their pitchforks…)
Rents are now up 75% and this has flowed to agency revenue. We’ve generally seen rent roll values lift by a similar level. If we use an average management fee of say 7.25%, the management of that “median” property is now likely to be worth $6000+ in most Queensland towns. Up from around $3500 a decade ago.
All being equal, a 100 property Queensland rent roll now has a “median” price of more than $600,000.
Of course a rent roll’s final selling price depends on the rents, but also the market multiple that’s applied to your earnings. And multiples are not leaping ahead, partly because your costs as an agency owner have spiked since 2021. Wages for new PM’s (if you can find them), insurances, your bank loans, office costs etc etc. An agency’s net profit margin will always impact rent roll valuations.
It’s not been all roses and choccies for rent rolls. Almost every agency lost managements through sales as landlords cashed in. But as rents and values spiked this past 3-4 years has been an excellent time to sell a rent roll.
Where next? I hear plenty about affordability and tenants now regularly been assessed at 40%+ of income. It seems likely the rents graph will ease and maybe flatten for a period of time.
Demand for rent rolls is definitely strong. In most Queensland markets there are more buyers than sellers, for rent rolls of most sizes. But while our business costs (especially wages) keep rising it’s hard to see multiples rising by any margin.
It’s clear no-one knows where rent roll prices will go. If I could pick a market with any real accuracy I’d be lying on a beach at an expensive resort somewhere!
If you’re considering selling I’d love to have a confidential chat about your rent roll or agency. Please call me on 0423 332 022.
