Rental demand outstripping supply in Queensland
DEMAND for rental properties across most of Queensland continues to outweigh supply, according to the latest Real Estate Institute of Queensland (REIQ) data.
The REIQ June residential rental vacancy rate survey, released today, found that vacancy rates were more constricted in June than at the same period last year.
Across South East Queensland, vacancy rates remain under 3 per cent and in most cases are tightening even further. A vacancy rate of 3 per cent is generally considered to be the equilibrium point of supply and demand.
"With the exception of Brisbane which remains at 2.1 per cent - a level that is indicative of more demand than supply - vacancy rates are trending lower in all other major regions of the southeast," REIQ CEO Anton Kardash said.
"In fact, our data shows that the Cairns, Bundaberg and Fraser Coast regions all recorded vacancy rates below 3 per cent and rates which were lower than at the same point in 2012.
"While lower vacancy rates means competition for rental properties is greater, it is also attracting more investors, which is good news for our property market."
REIQ analysis of Australian Bureau of Statistics data (ABS) found that the estimated property investor activity in Queensland was up 14.9 per cent to 5,121 dwellings financed in May this year compared to May last year.
The numbers of investors were also up nearly 20 per cent compared to the month before with the numbers of dwellings financed above the 10-year monthly average of 4,887.
"When you also consider the underlying dollar value of loans to Queensland investors captured by the ABS, it clearly shows that investment activity is at its highest level since June 2009," Mr Kardash said.
One year ago, the Gold Coast's rental market was in oversupply territory at 4 per cent, but according to REIQ rental survey its vacancy rate in June had reduced to 2.6 per cent.
Likewise on the Sunshine Coast which has experienced a reduction in vacancy rate from 3.3 per cent in June last year to 2 per cent this year.
Following the floods in Bundaberg earlier this year, the vacancy rate in that region has returned to more normal levels in June as demand reduces.
At the other end of the spectrum, however, Queensland's mining regions continue to be impacted by lower rental demand which is influencing vacancy rates in these areas.
Gladstone and Mackay's vacancy rates continue to show signs of oversupply at 4.6 per cent and 6.6 per cent respectively in June.
An interesting result in the June survey, however, was that Rockhampton and Townsville both recorded an increase in vacancy rates, possibly partially due to the downturn in the mining sector. Rockhampton posted a vacancy rate of 3.4 per cent, up from 2.7 per cent, while Townsville recorded 4.5 per cent, up from 3.3 per cent in May.
Together with Cairns, Toowoomba posted the lowest vacancy rate of any major region at 1.8 per cent.