Vacancy rates have edged up slightly across Queensland according to data released today from the Real Estate Institute of Queensland (REIQ), but the peak body warned 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.
The statewide vacancy rate rose ever-so-slightly to 1% (compared to 0.9% in March Quarter), assisted by more substantial rises in coastal areas such as Noosa, Sunshine Coast and Hinterland, Maroochy Coast, and Caloundra Coast.
As promising as the quarter-to-quarter results sound, REIQ CEO Antonia Mercorella (pictured above) 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% to 3.5% and that’s virtually unheard of at the moment in Queensland,” Mercorella said.
The REIQ chief noted that in Queensland’s capital city, only 1.2% of properties were available and remained advertised for rent for more than three weeks over the quarter, placing it above the state 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,” Mercorella said.
Mercorella explained that tight vacancy rates suggest a shortage of rental properties, possibly because leases are being renewed at the end of agreements rather than returning 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,” she said.
Mercorella advised property owners to discuss with their property managers why a property might be sitting vacant for longer periods, which could necessitate making improvements or adjusting to market conditions.
The two healthy vacancy rates this quarter were reported in Noosa (2.6%) and Mount Isa (2.7%), while Redland’s Bay Islands just tipped over into a weak rating at 3.7%.
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% or lower in: Cook 0.0%, Goondiwindi 0.1%, Charters Towers 0.2%, Tablelands 0.2%, Banana 0.3%, Maranoa 0.3%, Southern Downs 0.4%, Maryborough 0.5%, and Central Highlands 0.5%.
An additional 19 areas posted a considerably tight result between 0.6%-0.9% including: Redcliffe 0.6%, Cairns 0.6%, Mackay 0.6%, Toowoomba 0.6%, Mareeba 0.6%, South Burnett 0.6%, Mainland 0.7%, Bundaberg 0.7%, Moreton Bay 0.8%, Fraser Coast 0.8%, Rockhampton 0.8%, Burdekin 0.8%, Outer Brisbane 0.9%, Ipswich 0.9%, Caboolture 0.9%, Pine Rivers 0.9%, Caloundra Coast 0.9%, Hervey Bay 0.9%, and Townsville 0.9%, REIQ reported.
Still well within tight territory, but above the 1.0% mark were: Greater Brisbane 1.0%, Logan 1.0%, Redland 1.0%, Livingstone 1.0%, middle ring Brisbane 1.1%, Sunshine Coast 1.1%, Gladstone 1.1%, Gympie 1.1%, Brisbane 1.2%, Maroochy Coast 1.2%, Hinterland 1.2%, Gold Coast 1.3%, Cassowary Coast 1.3%, Scenic Rim 1.3%, Whitsunday 1.3%, Inner Brisbane 1.4%, Lockyer Valley 1.5%, and Isaac 1.8%.
The biggest improvement in the rate over the quarter, according to REIQ, was recorded in Noosa (+0.7%), followed by the Scenic Rim, Sunshine Coast, Hinterland, and Maroochy Coast which all eased by +0.4%, and the Caloundra Coast and Gold Coast which each lifted by +0.3%. However, the rises in these markets might be seasonal, and the December Quarter 2024 data will reveal if the trend is holding.
All other increases were limited to a minimal 0.1% which is not considered a material shift.
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.
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