Rental markets tighten in the Sunshine State and experts see good prospects on the horizon for the Southeast
A suburb of Queensland ranks first in the list of best rental operators in CoreLogic. Blackwater was named the best rental market in Australia in September 2019. The suburbs offer rental yields of up to 11.7% on average, while housing prices are very low, with a median of less than $ 150,000. The market is so tense that there is no room for tenants.
In fact, the Sunshine State dominated the Top Location Performers report, with 42 places out of 100 on the list.
The Queensland Real Estate Institute (REIQ) confirmed these findings in its report on the vacancy rate for rental housing for the June 2019 quarter, noting that markets were narrowing and were stronger than in the previous quarter. This indicates a rising rental demand in this state.
The REIQ report underlined the low vacancy rate, barely 2.4% in the Brisbane metropolitan area. However, no rental market in Queensland is as tight as Maryborough's, which saw its vacancy rate fall to 0.3% in March from 1.6% in September 2018. Vacations are also very limited. the Fraser Coast region, where the average rate is 0.9%.
"The Gold Coast and Sunshine Coast regions have each experienced strong housing price increases, benefiting from significant migratory flows and an undersupplied market. Vacancy rates are low, but supply is rising, "said Angie Zigomanis, associate director of BIS Oxford Economics.
"We expect the price of housing to rise the most in Brisbane, even if it will not be immediate. Net migration flows between states in Queensland have increased. "
Since the mining sector is nowadays not very active in the mining sector, tourism could be the most favorable sector for the revival of the state economy. According to the CoreLogic CHIP (Cordell House Index Price) report from July 2019, foreign investors plan to build large-scale hotel complexes in the north of the state, as well as new residential properties by 2020 This could promote population growth in the coming years.
However, Zigomanis warns investors not to worry about Queensland's supply levels.
"There remains an oversupply of housing in the state, mainly in the apartment sector, and any economic recovery in that state has not yet progressed. According to forecasts, price increases will remain modest in 2019/2020.
SUBURB OF WATCH
SCARNESS: A tourist place in activity
In the suburb of Scarness, in Hervey Bay, house prices remained stable, with only a slight decrease between 12 months and August 2019. As a result, the median value is well below $ 300,000.
This is a fairly similar story for the unit market, where the median price is just above $ 250,000. The relative stability of this market may have attracted renters, as the demand for rental housing is quite high. Evidenced by the spectacular rise of 9.4% in the rent of the units, which amounts to 290 dollars on average per week.
Scarness is a waterfront tourist destination and is home to an ocean themed playground.
Tourism: Because of its location near the water, Scarness is popular with tourists
Rent: Unit rent rates increased by almost 10% to a weekly average of $ 290
Top suburbs:
Stafford Hts
,
Mortdale
,
Gladesville
,
sunshine
,
balga
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