This article is from the Australian Property Journal archive
TIGHT conditions for renters in the sunshine state are “the new normal”, the Real Estate Institute of Queensland (REIQ) says, calling on the newly elected Crisafulli government to act.
Of the 50 local government areas and sub regions covered in the report, vacancy rates tightened in 19, remained unchanged in 18, and relaxed in 13 during the September quarter.
Low vacancy rates continue to dominate the state. The vast majority of areas were classified as “tight” – about half reported rates below 1.0%, and a few as low as 0.1% and even zero.
The statewide vacancy rate remained at 1.0%.
Far North Queensland reported some of the tightest rates in the state – most notably in Cook (0.0%), as well as Mareeba (0.4%), Tablelands (0.5%) and Cairns (0.9%) closely followed. Elsewhere, a 0.1% vacancy rate was recorded in both Goondiwindi and Charters Towers.
Most changes were a modest 0.1% and 0.2%. Exceptions included Mount Isa, Redland’s Bay Islands and Lockyer Valley, where tightening rates were more pronounced. Cairns, Tablelands and Isaac experienced slight relaxations.
REIQ CEO Antonia Mercorella urged Queensland’s newly elected government to take action.
The September quarter results showed the significant work ahead for the new State Government to grow housing supply and revive the rental market.
“While low vacancy rates appear to be the new normal, the new state government should not simply accept this trend.
“These figures may just be numbers, but they carry real human consequences.
She said the scarcity of housing options in Cairns is reportedly making it “near impossible” for job seekers to relocate there.
“Similarly, some individuals are unable to find suitable rentals in their communities and are left with no option but to move elsewhere.”
“We need to be working towards achieving a healthy vacancy rate that meets the housing needs of all Queenslanders and supports the state’s growth.
Mercorella stressed that although rental properties were generally leased quickly, cost-of-living pressures were seeing higher-priced properties sit on the market for longer.
“What we’ve been seeing for a while now is a two-speed rental market – where comparatively affordable properties are snapped up rapidly, and higher priced properties are sitting empty and idle for longer,” she said.
PropTrack’s recent Quarterly Rent Report showed rents jumped by as much 15% over the September quarter. That all but wiped out the median rent falls in 236 suburbs during the June quarter. In the September period, house rents lifted in 252 suburbs, and in 139 for units..
Since the beginning of the pandemic in March 2020, rents have surged by 53% for houses and units in Brisbane, and by 60% in the regions for houses and 67% for units.
“Savvy investors are mindful that a quickly-leased property at a reduced price may be more beneficial than a higher price that remains untenanted for weeks – it’s important to listen to the market’s feedback,” Mercorella said.
“Households are tightening their purse strings and effectively tenants have put their own caps on what they are willing to budget, or can afford, for rent.
“That’s why the Crisafulli Government’s pledge to deliver one million homes by 2044 – including 53,500 new social and affordable homes – is critically important, as is fostering an investment-friendly regulatory environment.”
The government is also promising a $2 billion housing infrastructure fund, of which half will go to aiding the delivery affordable housing for essential workers such as nurses, teachers and police in regional Queensland.
The state also has its obligations to fill under the National Housing Accord, which aims to deliver 1.2 million “well-located” homes around the country. Queensland’s share is a bit more than 245,000 homes.
