The Real Estate Institute of Queensland (REIQ) has released its latest report on residential vacancy rates for the September quarter, revealing that tight rental conditions have become standard across the state.
With vacancy rates below 1% in roughly half of Queensland’s regions, REIQ described the ongoing scarcity as the “new normal,” urging the new state government to take action.
Of the 50 areas analysed in the report, vacancy rates tightened in 19, stayed the same in 18, and relaxed slightly in 13. However, changes were generally modest, between 0.1 and 0.2 percentage points.
Certain areas like Mount Isa, Redland’s Bay Islands, and Lockyer Valley saw more significant tightening, while Cairns, Tablelands, and Isaac experienced minor relaxations.
Statewide, the vacancy rate remained unchanged at 1.0%, with Far North Queensland reporting some of the lowest rates. Notably, Cook reported a 0.0% vacancy, while Mareeba, Tablelands, and Cairns posted rates under 1%.
REIQ CEO Antonia Mercorella (pictured above) emphasised the urgent need for increased housing supply, noting that vacancy rates below 1% have real consequences for communities.
“These figures may just be numbers, but they carry real human consequences,” Mercorella said, highlighting how limited rental options in Cairns hinder job seekers from relocating there.
Mercorella expressed optimism about the Crisafulli government’s commitment to delivering one million homes by 2044, including 53,000 affordable units, but stressed the importance of creating an investor-friendly regulatory environment to meet housing needs across the state.
Queensland’s tight rental market has also created a divide, with more affordable properties leasing quickly, while higher-priced rentals remain vacant longer.
“What we’ve been seeing is a two-speed rental market,” Mercorella said, as prospective tenants on limited budgets prioritize affordability.
Savvy investors, she added, are adapting by pricing properties competitively to avoid vacancies.
“Despite low vacancy rates, this doesn’t guarantee all rentals will be leased quickly unless prospective tenants see the value in the property’s amenity, location, or lifestyle,” Mercorella said, emphasising that renters are setting their own limits on what they are willing, or able, to pay.
The REIQ categorises rental markets into three classes based on vacancy rates: tight (0 - 2.5%), healthy (2.6 - 3.5%), and weak (3.6%+).
As the state grapples with widespread tight conditions, experts are watching how government policies and investment trends might alleviate Queensland’s critical rental shortage.
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