Investors flock to QLD as vacancy rates stay ridiculously low

It’s not difficult to see why investors are flocking to the Sunshine State.

The latest data from the Real Estate Institute of Queensland has revealed extremely tight vacancy rates across many parts of the state.

Many regional areas are reporting rental vacancy rates below 0.5 per cent, with the lowest vacancy rates seen in Maryborough (0.1 per cent), Tablelands (0.2 per cent), Southern Downs (0.2 per cent), Gympie (0.2 per cent), and South Burnett (0.3 per cent).

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 per cent, slightly lower than Gold Coast’s 0.7 per cent and the 1 per cent rate on offer in Brisbane.

Across the Brisbane local government area, the rental vacancy rate is now sitting at 1.8 per cent – markedly higher than the 0.9 per cent vacancy rate seen in Ipswich and the 0.5 per cent 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 per cent, while Mackay is currently seeing 0.7 per cent of rentals sitting vacant.

In Rockhampton, that figure is just 0.5 per cent.

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 per cent change across the three-month period.

Antonia Mercorella is the CEO of the REIQ and 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.

She acknowledges that the current market is seeing a number of property owners taking advantage of the market conditions and asking for higher rents when tenancy agreements are up for renewal.

This way, “renters can determine whether they’re prepared to pay more rent if staying in that region is a priority for them”.

“In this tight market, most rental property listings will attract multiple applications, with prospective tenants needing to look for ways to stand out from the competition.”

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