Brisbane’s rental market has recorded its lowest vacancy rate in 11 years, and has re-entered the “tight range” for the first time in three quarters.
That is according to the latest REIQ Rental Vacancy Report, which found vacancy rates have shrunk to 1.6 per cent. a tightening of 1.2 per cent since the June quarter.
“The Brisbane LGA market has re-entered the tight range after remaining in the healthy range for the previous three consecutive quarters,” the report found.
“Redland and Logan Cities reported the tightest vacancy rates of 1.5 per cent each, with rents holding steady year-on-year for three-bedroom houses.
“Moreton Bay vacancies rose slightly over the quarter however the overall vacancy rate remained within the tight range at 1.7 per cent, while rents increased $10 per week for three-bedroom houses from September 2018.
“Ipswich City held steady from the June quarter with a healthy vacancy rate of 2.9 per cent and median rents increasing by 1.6 per cent for three-bedroom houses year on year.”
The Greater Brisbane market also reported its lowest vacancy rate in over a decade at 1.7 per cent, 0.7 per cent lower than the previous quarter and 0.5 per cent lower than the same quarter in 2018.
On the Gold Coast, vacancies remained stable across the quarter with an oversupply of rental stock as new developments continue to spring up in the region causing rents to edge down.
“The reported median rent for three-bedroom houses in the June quarter was down 1 per cent year-on-year, while rent for three-bedroom townhouses was up 2.4 per cent,” the report revealed.
On the Sunshine Coast, rental market vacancies increased marginally by 0.3 per cent, placing the region within the healthy range, while on the Fraser Coast, rental markets remained tight for the quarter, in line with the previous two years, according to the report.
In the regions, Cairns vacancies were at an historical record low for the region, reporting 0.9 per cent for the quarter.
While in Toowoomba, a tightening of vacancy levels to 1.1 per cent is being heralded as “great news for investors”, with the garden city recording the lowest vacancy rates of all of the major regional areas.
In Townsville, which was devastated by flooding earlier this year, vacancy rates remain in the healthy range at 3.2 per cent, while the improving mining sector has seen Mackay vacancies remain in the tight range, albeit increasing marginally by 0.3 per cent over the quarter.
“Property managers have reported an increase in residents due to a rise in employment opportunities, contributing to the region’s economy,” the report said.
Vacancy rates also tightened to 2 per cent in the nearby Whitsundays region.
But in Bundaberg and Rockhamptoon, rental vacancies weakened, with Bundaberg recording a vacancy rate of 2.6 per cent, pushing it back in to the healthy range.
Rental vacancies in Rockhampton increased to 3.6 per cent, placing the region within the weak range for the first time since March 2018.