Fewer investors means tight rental market in Hervey Bay
A LACK of investors and young people delaying buying their own home is believed to be behind Hervey Bay's current tight rental market.
A report released by the Real Estate Institute of Queensland showed Hervey Bay had a vacancy rate of only 1.6% in the March 2013 quarter.
It is a full percentage drop from the same quarter in the previous year.
REIQ Fraser Coast chairwoman Linda Bland said the combination had created more demand for rental properties.
"There is not enough supply to meet demand," she said.
"There have been fewer investors."
In Maryborough, the report showed that the rental market had been considered healthy with a vacancy rate of 3.6% for the March 2013 quarter.
Overall, the Fraser Coast had a recorded vacancy rate of 2.9%.
Mrs Bland said she expected the market would not remain as tight this year as she expected investors would return to the market.
"I think it will turnaround," she said.
In the December 2012 quarter, Hervey Bay's vacancy rate had been 4.3%, but Mrs Bland believed that was not an accurate reflection of the market at the time.
Rental vacancy rates
- A vacancy rate of 2.5% or below is considered to be tight, while a rate of about 3.5% is considered to be a weak market.
- Hervey Bay had a vacancy rate of 1.6% for the March quarter, while Maryborough had a rate of 3.6%.
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