Results from the REIQ March residential rental vacancy rate, released yesterday, found that the rental market remained constrained in South East Queensland.
In Brisbane, the vacancy rate nudged marginally higher to 2.1 per cent for March, up from 2 per cent previously. Brisbane’s inner city recorded a vacancy rate of 2 per cent, unchanged from December 2012.
While the rental market remains tight, some REIQ accredited agents have noted lower demand within specific areas now the academic intake period has ceased. The addition of new apartments and a slight increase in investor activity should hopefully see vacancy rates ease over the coming year.
Recent data from the Residential Tenancies Authority (RTA) shows that median rental prices increased between December and March, with three bedroom houses up $10 to $410 per week and two bedroom units up $5 to $395 per week. The median rent for a four bedroom house increased by $20, now at $500 per week.
Rental conditions tightened across most markets within the Greater Brisbane area at the end of March, with the most significant decrease in vacancy levels recorded for Redland City.
Ipswich City was the only region not to record any movement in its vacancy rate, unchanged at 2.1 per cent as at the end of March and consistent with agents commenting on strong demand.
Logan City’s vacancy rate dipped slightly 2.3 per cent, down from 2.5 per cent recorded for the end of December. According to agents, people are moving to the region from other parts of Queensland and interstate.
The vacancy rate for the Moreton Bay region remained steady, recording a vacancy rate of 2.4 per cent as at the end of March. RTA median rental data showed median rents rose by $5 for both three and four bedroom house, now at $330 and $380 respectively.
Vacancy levels decreased in the Redland City region overall, now at 1.2 per cent as at the end of March. On the mainland, vacancy rates fell to 0.9 per cent, as REIQ accredited agents have found that demand has been higher than normal, and new tenants were being approved even before the previous tenant had vacated.
Meanwhile, the bay islands area saw some holiday rentals being marketed instead as residential rental properties, partially influencing an increase in the area’s vacancy rate to 3.9 per cent.
With a vacancy rate of 2.5 per cent recorded at the end of March, rental market conditions continue to tighten within the Gold Coast region. REIQ accredited agents more than a year ago reported of the adverse effect the weak job market was having on rental vacancy levels.
However, the Gold Coast City Council’s Economic Profile shows that unemployment within the region has been falling over the past year, now at levels comparable with South East Queensland overall and no doubt the catalyst behind these recent, welcome drops in the region’s vacancy rate.”
By REIQ chairman Pamela Bennett