![]() The September quarter also showed a number of areas had plateauing vacancy rates compared to the previous quarter, and for the areas that did experience a shift, most only saw a minimal 0.1 percent movement up or down. In many parts of the state, the September quarter 2022 figures represent the ninth consecutive quarter of sub 1.0 percent vacancy rates, as tight conditions firmly set in. Vacancy rates are an indication of the percentage of properties that come onto the market to rent, and according to the REIQ, a healthy vacancy rate sits between 2.6 – 3.5 percent. REIQ members can access the full report in the membership portal.It comes as no surprise that Queensland’s tight residential vacancy rates have not shown any substantial signs of easing over the September quarter 2022, according to the Real Estate Institute of Queensland’s (REIQ) latest report released today.Īt the Queensland Housing Summit held last month, which highlighted the serious housing supply shortage plaguing the state, stakeholders conceded that there was no silver bullet that would solve the housing crisis overnight. These markets are classified according to vacancy rates: ![]() The REIQ classes rental markets into three categories, tight, healthy, or weak. The following 10 LGAs and sub regions reached equal record lows for the past decade: The following 18 LGAs and sub regions reached record lows for the past decade: 1.5% (tight) – Inner-ring Brisbane 0-5km.0.2% (tight) – Maryborough, South Burnett, Gympie, Goondiwindi.0.1% (tight) – Tablelands, Southern Downs.That’s why we’ll continue to advocate for fair and balanced legislation that maintains a level playing field for both investors and tenants.” “With record low vacancy rates, and 36% of our population renting their homes, we can’t afford to reduce the appeal of investing in Queensland. “With the second stage of rental reforms looming, the last thing we need right now in the midst of a rental crisis, is legislative reform which undermines investor confidence,” she said. Ms Mercorella said with investors selling and the dominant purchasers being owner occupiers, more homes that were previously investment properties were effectively being removed from the rental market, shrinking an already scarce base of rental supply. “Yet another factor that’s added to the squeeze on rental stock during this quarter is the February flooding disaster displacing people from their homes.” “Queensland has also had a steep population boost from interstate migration, with those making the shift to the Sunshine State potentially deciding to start their life in the heart of the capital city. “This drop could reflect the return of international students as well as hospitality and entertainment workers to the inner city, or simply prospective renters focusing their search in areas where the vacancy rate is healthier and they have more options and therefore better prospects. “While we continue to see regional markets gradually tightening, Brisbane’s vacancy rates have taken a dramatic dive this quarter, especially when looking at the 0-5km Inner Brisbane ring,” Ms Mercorella said. REIQ CEO Antonia Mercorella said with the rental squeeze being experienced right across Queensland, now even depleting the vast rental stock in Inner Brisbane, it could signal a renewed interest in city living. ![]() Combined, this resulted in Brisbane LGA vacancy rates slipping to 1.1% and Greater Brisbane going down to 0.7%. Notably, Brisbane experienced the biggest drops, with Inner Brisbane’s (0-5km) vacancy rate tumbling to 1.5%, Middle Brisbane (5-20km) falling to 0.9%, and Outer Brisbane also down to 0.6%. Record, or equal record lows were reached this quarter in 28 of the 50 LGAs and sub regions in the report, and all but one (Redland’s Bay Islands) were sitting at 1.5% or under – which is well within what the REIQ classifies as “tight” (0 – 2.5%), and far from “healthy” (2.6 – 3.5%). Maryborough remained steady at 0.2% (with minimal improvement from the previous quarter at 0.1%). In regional areas such as South Burnett, Gympie and Goondiwindi, the vacancy rate has dwindled to a mere 0.2%, representing a ten-year low in each of these regions. The REIQ’s Residential Vacancy Report for the March 2022 quarter, released today, shows the Tablelands Region in Far North Queensland, and the Southern Downs Region along the boundary with New South Wales now top the tightest vacancy rates in the state at a miniscule 0.1%. Rental vacancy rates in Queensland have tightened to record lows in the first quarter of 2022 in more than half of the 50 Local Government Areas and sub regions reported on by the REIQ.
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