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Queensland rental markets soften

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Rental conditions in Queensland are faltering after a surge in the sales sector.

Data from the Real Estate Institute of Queensland (REIQ) shows vacancy rates in Brisbane climbed to 2.3 per cent at the end of June, compared to 1.9 per cent in March.

REIQ acting CEO Antonia Mercorella said vacancies across the state were weakening as a result of rising sales.

“Vacancy rates still remain tight in many parts of the state, however according to REIQ members the rental market is starting to stabilise, with vacancies creeping up in some areas,” she said.

“This is the result of strengthening first home buyer activity, which is reducing tenant demand, along with increased investor activity which is increasing the rental supply in some areas.”

In resources-driven areas like Gladstone, Mackay and Rockhampton, availability has tightened but remains elevated, Ms Mercorella said.

Current vacancy rates are at 4.8 per cent in Rockhampton and 6.8 per cent in Mackay, while Gladstone is at 5.6 per cent, according to REIQ data.

Although Toowoomba continues to record tight conditions, with vacancies at 1.5 per cent, the rate has crept up by 0.1 per cent since the end of March.

According to Ms Mercorella, tourism centres were the state’s best performers in the rental market.

On the Gold Coast, vacancies dropped by 0.5 per cent to 1.7 per cent over June.

The Sunshine Coast is sitting at 1.1 per cent, the Fraser Coast at 2.5 per cent and Cairns at 2.0 per cent.

However, the Townsville market is struggling, with vacancies hitting a record high.

Over the three months to June, availability rose by 0.7 per cent to a high of 5.4 per cent.

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