Real Estate
14 August, 2024
Vacancy rates ease slightly
VACANCY rates have edged up slightly across Queensland according to the Real Estate Institute of Queensland (REIQ), but the peak body warns that the broader outlook remains concerning.
Of the 50 local government areas and sub regions covered in the REIQ’s Residential Vacancy Rate Report for the June 2024 Quarter, half (25 areas) had a lift in vacancies, 12 were unchanged, and 13 tightened further compared to the previous quarter.
As promising as the quarter-to-quarter results sound, REIQ chief executive Antonia Mercorella warned that the vast majority (47) of areas had vacancy rates classified as ‘tight’, with only two ‘healthy’, and one ‘weak’.
“A healthy vacancy rate is one that sits between 2.6 per cent to 3.5 per cent and that’s virtually unheard of at the moment in Queensland,” she said.
“In our state’s capital city, just 1.2 per cent of properties were available and remained advertised for rent for more than three weeks over the quarter – and this places it above average.
“We are not painting a picture of good health in our state when it comes to balancing rental demand with supply, and we know competition is particularly intensified at the highly sought after, more affordable end of the market.
“Tight vacancy rates indicate that there’s not enough rental properties coming up for rent, possibly due to tightly held leases which are being renewed at the end of the agreement rather than being returned to the market.
“In tight markets that have a severe shortage of properties, if an advertised rental property isn’t moving relatively quickly, it suggests that there could be a mismatch between what it offers and the needs of those looking for a place to live.
“It’s important to talk to your property manager about why your property may be sitting vacant for longer and that may mean making improvements or meeting the market.”
The two healthy vacancy rates this quarter were reported in Noosa (2.6 per cent) and Mount Isa (2.7 per cent), while Redland’s Bay islands just tipped over into a weak rating at 3.7 per cent.
At the extremely tight end of the scale, nine areas in regional Queensland demonstrated just how dire the search for a rental property has become, with rates of 0.5 per cent or lower in: Cook zero, Goondiwindi 0.1 per cent, Charters Towers 0.2 per cent, Tablelands 0.2 per cent, Banana 0.3 per cent, Maranoa 0.3 per cent, Southern Downs 0.4 per cent, Maryborough 0.5 per cent and Central Highlands 0.5 per cent.
An additional 19 areas posted a considerably tight result between 0.6 per cent-0.9 per cent including: Redcliffe 0.6 per cent, Cairns 0.6 per cent, Mackay 0.6 per cent, Toowoomba 0.6 per cent, Mareeba 0.6 per cent, South Burnett 0.6 per cent, Mainland 0.7 per cent, Bundaberg 0.7 per cent, Moreton Bay 0.8 per cent, Fraser Coast 0.8 per cent, Rockhampton 0.8 per cent, Burdekin 0.8 per cent, Outer Brisbane 0.9 per cent, Ipswich 0.9 per cent, Caboolture 0.9 per cent, Pine Rivers 0.9 per cent, Caloundra Coast 0.9 per cent, Hervey Bay 0.9 per cent, and Townsville 0.9 per cent.
Still well within tight territory, but above the 1.0 per cent mark were: Greater Brisbane 1.0 per cent, Logan 1.0 per cent, Redland 1.0 per cent, Livingstone 1.0 per cent, middle ring Brisbane 1.1 per cent, Sunshine Coast 1.1 per cent, Gladstone 1.1 per cent, Gympie 1.1 per cent, Brisbane 1.2 per cent, Maroochy Coast 1.2 per cent, Hinterland 1.2 per cent, Gold Coast 1.3 per cent, Cassowary Coast 1.3 per cent, Scenic Rim 1.3 per cent, Whitsunday 1.3 per cent, Inner Brisbane 1.4 per cent, Lockyer Valley 1.5 per cent, and Isaac 1.8 per cent.
The vacancy rate remained unchanged over the quarter in Logan, Caboolture, Pine Rivers, Redcliffe, Fraser Coast, Maryborough, Mackay, Cassowary Coast, Gympie, Mareeba, Southern Downs and Whitsunday.
Fast facts: June Quarter 2024
Queensland vacancy rate: 1.0 per cent
Tightest vacancy tate: Cook: 0 per cent
Highest vacancy rate: Redland’s Bay Islands: 3.7 per cent , followed by Mount Isa: 2.7 per cent and Noosa: 2.6 per cent
Biggest falls: -1.4 per cent in Bay Islands, followed by -0.7 per cent in Mount Isa
Biggest rises: +0.7 per cent in Noosa, followed by +0.4 per cent in Scenic Rim, Sunshine Coast, Hinterland, Maroochy Coast.
The REIQ classes rental markets into three categories, tight, healthy, or weak. These markets are classified according to vacancy rates:
0 – 2.5 per cent = tight
2.6 – 3.5 per cent = healthy
3.6 per cent-plus = weak.
