Queensland rental market remains tight

Queensland rental market remains tight

Posted on Friday, July 20 2012 at 12:43 PM

Demand for rental properties still exceeds supply in many parts of Queensland, according to data released today.

Figures compiled by the Real Estate
Institute of Queensland (REIQ) show a number of regions across the state have a
rental vacancy rate below three per cent. That benchmark is considered an
indicator of a balanced market.

“While we’re seeing an increase in the
number of first homebuyers and investors in the sales market, their activity
will take some time to flow through to the rental market,” the REIQ’s chief
executive Anton Kardash says.

The vacancy rate in Brisbane was 2.1 per
cent, a slight improvement on the 1.7 per cent figure recorded in March. The
inner city market saw its vacancy rate fall to 1.6 per cent, with reports from
agents that stronger demand is pushing up prices, Kardash says.

A continuing influx of people in regional
towns near major mining centres is seeing supply dry up, he says.

For the second time this year, Rockhampton
recorded the tightest rental market in the state at just 1.1 per cent. The
central Queensland city’s more affordable rental market, compared to
neighbouring Gladstone and nearby Mackay, could be responsible for the rush of
new residents.

Toowoomba, west of Brisbane, recorded
Queensland’s second lowest vacancy rate at just 1.2 per cent.

Lower investor activity in Cairns is
believed to be responsible for the northern city’s vacancy rate dropping to 1.9
per cent.

Similarly, the Gold Coast’s vacancy rate
increase slightly to four per cent while the Sunshine Coast also saw a small
rise to 3.3 per cent over the same period.

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