The REIQ says a vacancy rate of between 2.5 per cent and 3.5 per cent is considered a healthy level of demand and supply. Higher than 3.5 per cent and tenants are spoilt for choice. Lower than 2.5 per cent and investors can sit back and watch the cash roll in.
So let’s see how Brisbane’s rental markets played out in the March quarter.
- Brisbane local government area, 2.5 per cent, unchanged from the previous quarter
- Inner city Brisbane (0-5km from the CBD), 2.1 per cent, down 1.9 percentage points
- Middle ring (5-20km), 2.7 per cent, up 0.7 percentage points
- Outer Brisbane, 2.0 per cent, unchanged
- Moreton Bay local government area, 1.7 per cent, down 0.3 percentage points
The big mover here is obviously the inner city, which the REIQ pegs in ‘tight’ territory after dropping from a 4.0 per cent vacancy rate in the December quarter.
“The December quarter is typically higher than the rest of the year as tenants move or students leave for Christmas break,” the REIQ reports. “The March quarter is typically a more consistent indicator of where the market is performing.”
The middle ring has bounced back into healthy territory after a rental market tightening.
“Pockets of the middle ring have continued to be very popular, largely due to the relative affordability compared with the inner ring,” the REIQ reports. “It’s likely a factor that will ensure it remains competitive despite supply levels.”
While Moreton Bay growth spots like North Lakes and Kallangur continue to churn out house and land packages, very few are making it on to the rental market, so rental stock remains low.
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