Many regional areas are reporting rental vacancy rates below 0.5 percent, with the lowest vacancy rates seen in Maryborough (0.1 percent), Tablelands (0.2 percent), Southern Downs (0.2 percent), Gympie (0.2 percent), and South Burnett (0.3 percent).
The rates across major centres are just as enticing for investors looking to offer up residence for tenants. The Sunshine Coast is reporting a vacancy rate of just 0.6 percent, slightly lower than Gold Coast’s 0.7 percent and the 1 percent rate on offer in Brisbane.
Across the Brisbane local government area, the rental vacancy rate is now sitting at 1.8 percent – markedly higher than the 0.9 percent vacancy rate seen in Ipswich and the 0.5 percent vacancy rate on offer in Toowoomba.
Up north, the tight rental vacancy rates continue: Cairns and Townsville are both reporting vacancy rates of just 0.6 percent, while Mackay is currently seeing 0.7 percent of rentals sitting vacant.
In Rockhampton, that figure is just 0.5 percent.
The current rental vacancy rates on show are a stabilisation of sorts. Of the 50 local government areas and sub-regions covered in the report, vacancy rates fell in 20 areas, remained the same in 17, and climbed in 13 compared to the previous quarter.
But, across most areas surveyed, movements – whether up or down – were usually confined to a minimal 0.1 percent change across the three-month period.
REIQ CEO Antonia Mercorella has expressed the hope that APRA’s recent move to tighten lending won’t dampen investor activity in the market, given the current strain on supply.
“It also remains to be seen what the impact of the state government’s new rental reform legislation will have on the appeal of investing and consumer confidence.”
She said more investors in the market should increase the number of properties in the rental pool and begin driving up vacancy rates, thereby “relieving stress on renters”.
The CEO is calling for state and local governments to work together in releasing more land for housing development, explaining that “while parts of Queensland have an abundance of newly approved housing lots available for development, our bigger centres are falling behind”.
“By way of example, Brisbane only has 2.9 years’ worth of approved housing lot supply while the Sunshine Coast and Gold Coast each only have 1.9 years’ worth.
“We need to ensure an adequate supply of land is released for housing, particularly with an expected influx of migrants after borders reopen and to help boost the number of homes available for both renters and owner-occupiers.”