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Throughout 2024, Queensland experienced persistently low vacancy rates, with the Real Estate Institute of Queensland’s (REIQ) latest report revealing a statewide vacancy rate of just 1%.
This figure has remained consistent for the last half of the year, only slightly higher than the 0.9% recorded in the first quarter.
The REIQ report covered 50 local government areas, showing a mix of tightening, stable, and slightly easing vacancy rates across the regions.
The tightest vacancy rates were observed in Cook (0%) and other regions like Goondiwindi and Charters Towers, both recording a barely perceptible 0.1%.
In contrast, regions such as the Bay Islands and Isaac displayed healthier vacancy rates of 3.5% and 3.2%, respectively.
Notably, Isaac’s increase to 3.2% marked its first move into a healthy vacancy range since before the pandemic, indicating a potential easing in rental market pressures there.
Seasonal fluctuations influenced various areas, with Noosa seeing its vacancy rate drop significantly from 2.4% to 1.2%.
REIQ CEO Antonia Mercorella (pictured above) commented on the repetitive nature of low vacancies.
“Despite the movements over the quarter and over the year, 48 out of the 50 regions in the report have landed in what we classify as a tight rental market.”
This ongoing tightness means fewer rental properties are available, and those that do become available are snapped up quickly, often staying on the market for less than three weeks.
Addressing the chronic shortage of rental properties, Mercorella stressed the necessity for more housing.
“To solve our housing crisis, Queensland needs a laser focus on addressing housing roadblocks,” she said.
These include various factors from infrastructure provision and land release to addressing labor shortages and regulatory challenges.
The call for increased housing is becoming more urgent as both state and federal governments face pressure to prioritize housing in their agendas.
The urgency of addressing the housing shortage is underscored by recent data showing Queensland lagging in dwelling commencements and completions.
The state is falling behind its national housing targets, with completions and building approvals significantly below needed levels to meet demand.
“This is a national problem, but Queensland is falling behind on both the historical average and the target,” Mercorella said, highlighting the critical need for a boost in construction activity to accommodate growing demand.
