Qld vacancy rates remain critically low: REIQ
Even with vacancy rates increasing slightly across the state, the institute warns the broader outlook “remains concerning”.
The Real Estate Institute of Queensland’s (REIQ) Residential Vacancy Report for the June 2024 quarter has revealed that the statewide vacancy has very slightly lifted to 1 per cent, compared to 0.9 per cent in the March quarter.
Of the 50 local government areas and subregions surveyed in the report, half (25 areas) had a lift in vacancies, 12 were stable, and 13 tightened further compared to the March quarter.
REIQ CEO Antonia Mercorella conceded that while these quarter-to-quarter results might sound promising, she warned that the vast majority (47) of these areas had vacancy rates classified as “tight”. Just two areas were deemed “healthy”, while one was deemed “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,” said Mercorella.
“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.”
The two areas with vacancy rates classified by the REIQ as “healthy” were Noosa and Mount Isa, with vacancy rates of 2.6 per cent and 2.7 per cent respectively.
Within the Redlands, the Bay Islands market was recorded as Queensland’s sole “weak” market, with the area’s 3.7 per cent vacancy rate “just tipping over into a weak rating”.
Notably, the REIQ highlighted that nine areas in regional Queensland have vacancy rates of 0.5 per cent or lower.
Cook (0 per cent) and Goondiwindi (0.1 per cent) registered as the state’s two tightest markets.
Mercorella stated that “we are not painting a picture of good health in our state when it comes to balancing rental demand with supply”, acknowledging that “competition is particularly intensified at the highly sought after, more affordable end of the market”.
Stressing “tight vacancy rates indicate that there’s not enough rental properties coming up for rent”, the CEO expressed that the state’s property shortage is “possibly due to tightly held leases which are being renewed at the end of the agreement rather than being returned to 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 if 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,” she concluded.