The Queensland rental market is currently facing the most tense conditions since the global financial crisis as vacancy rates continue to decline, according to the latest market report from the Real Estate Institute of Queensland (REIQ).
About 70% of the state's rental markets are in "extremely tight" conditions, with the regional market outperforming major metropolitan areas in rental demand.
Antonia Mercorella, CEO of REIQ, said any further tightening in rental availability would put undue pressure on the state's housing sector.
"This is why more needs to be done to better support both the growth and continuation of real estate investor activity in the Queensland real estate market and the contributions that are made to it. they bring to the economy of the state, "she said.
According to the REIQ, about one in three people living in the state rents. With vacancy rates at their lowest, Mercorella said it would be difficult for others to find affordable housing.
“Every inhabitant of Queensland should have access to a safe, secure and affordable home that meets and supports their needs,” she said.
In fact, 18% of the Queensland areas have a vacancy rate of less than 1%. Some of the lowest vacancies are found in Maryborough (0.4%), the Fraser Coast or Mount Isa (0.5%), Gympie (0.9%) and Rockhampton (0.7%).
Conditions are also tense in many popular areas, including Caboolture (1.2%), Fraser Coast (1.2%), Mackay (1.3%), Sunshine Coast (1.9%) and Townsville (1.7%). Job vacancies are higher in Cairns (2.4%), Gladstone (2%) and Noosa (2.4%), although marginal.
"Limited rental offers can lead to mismatched housing preferences and impact the urban spatial structure and functioning of those same regions – such as transportation costs, labor markets, and access to amenities. services and amenities, ”said Mercorella.
This also indicates a decline in public investment in social housing with more low income tenants in the market.
Mercorella thinks this also suggests that the Queensland rental market has shifted from a transitional housing sector for people entering homeownership to a long-term housing sector for a significant number of households across the country. Queensland.
"It is for these reasons that vacant rentals can actually act as a barometer measuring the health of our real estate market," she said.
The state & # 39; s only 'weak' rental market is within Brisbane & # 39; s five kilometer inner city, where the vacancy rate is 3.9%. Major postal codes have significantly higher vacancies.
Mercorella said Brisbane had been hit hardest due to the impacts of COVID-19, which would make it likely to see lower rents. This, in turn, will lead to the return of tenants to the city.
"However, a lot of it will also depend on the ability of the commerce and retail sector to rebound. It really is a 'watch this space' situation unlike anything like this. that we have ever known, ”she said.
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