Understanding QLD’s Tight Rental Market: A Summary of REIQ’s Latest Report.
If you’re a property investor or a home owner in Queensland, understanding current trends in the rental market is essential for making informed decisions. That’s why we’re bringing you a summary of the latest report from the Real Estate Institute of Queensland (REIQ) on rental vacancy rates in the state. With rental supply slightly increasing but demand still high, the rental market in Queensland remains tight. In this blog post, we’ll break down the key points of the report and what they mean for property investors and home owners in the state.
According to the REIQ report, Queensland’s rental vacancy rate currently stands at 1.0%, which is considered tight by industry standards. This means that there are limited rental properties available in most areas of the state and tenants are likely to face stiff competition for available properties. The tightest vacancy rates are recorded in Cook, Goondiwindi and Charters Towers, where vacancy rates are at 0%, 0.1%, and 0.2%, respectively.
On the other hand, the highest vacancy rates are found in Redland’s Bay Islands, Mount Isa, and Noosa. Notably, Noosa experienced the biggest fall in vacancy rates at -1.1%, indicating a significant tightening in the market. Meanwhile, Burdekin experienced a rise in vacancy rates of +0.5%, indicating a slight loosening in the market. However, with the overall vacancy rate being tight, it’s unlikely that tenants will have much relief in finding suitable rental properties.
The report shows that more rental supply is becoming available, but it’s still not enough to meet demand. As such, tenants are likely to face rising rent prices, which will benefit property investors and home owners with rental properties. Even with COVID-19 pandemic ongoing, there remain vacancies as people continue to move and shift their living situations.
There are a few factors driving the tight rental market in Queensland. Population growth and a strong economy are two significant factors. Queensland is seeing strong population growth, with many people moving to the state from other parts of Australia and overseas. This is driving demand for rental properties. Additionally, the strong Queensland economy is attracting more people to the state who need housing. As a result, the rental market is expected to remain tight until more rental supply becomes available.
In conclusion, Queensland’s rental market is still tight, with vacancy rates falling under the “tight” category. While the report shows a slight increase in rental supply, it’s still not enough to meet demand. Property investors and home owners with rental properties are likely to benefit from rising rent prices, but tenants may face stiff competition in finding suitable rental properties. With population growth and a strong economy continuing to drive demand for rental properties, we’ll likely see the rental market remain tight in most areas of Queensland. By keeping these trends in mind, property investors and home owners in the state can make informed decisions about the rental market.
Fast facts: September Quarter 2023
- Queensland Vacancy Rate: 1.0%
- Tightest Vacancy Rates: 0% in Cook, followed by 0.1% Goondiwindi, and 0.2% in Charters Towers
- Highest Vacancy Rates: 6.2% in Redland’s Bay Islands (North Stradbroke, Russell, Macleay, Karragarra, Lamb, Coochiemudlo), followed by 2.5% in Mount Isa and 2.0% in Noosa
- Biggest falls: -1.1% in Noosa, followed by -0.6% on Sunshine Coast SD.
- Biggest rises: +0.5 in Burdekin
The REIQ classes rental markets into three categories, tight, healthy, or weak. These markets are classified according to vacancy rates:
- 0 – 2.5% = tight
- 2.6 – 3.5% = healthy
- 3.6% – plus = weak