Brighter Landlording

Brisbane rental demand strong

by Kate Watt, Marketing Manager 19 November 2015

The latest REIQ vacancy rate data shows the Queensland property market is operating at “two speeds” with rates remaining tight in the southeast corner, though holding steady or weakening in regional centres.

Rental markets from Gympie to the Gold Coast and west to Toowoomba were at “historically tight” levels, with some parts of the Sunshine Coast recording a vacancy rate of less than 1%.

Brisbane continued its long-term trend with a vacancy rate of 2.8%, which placed it in the “healthy range”, according to REIQ CEO Antonia Mercorella.

“We continue to see strong demand for dwellings in the Brisbane market and despite some commentators who suggest that we are facing a glut the data tells a different story,” Ms Mercorella said.

“New apartments in Brisbane are reportedly being snapped up by investors and owner-occupiers, although the vacancy rate softened slightly, from 3.0% to 3.3%.

“Asking rental prices are also said to be softening in response to the level of supply, however it is evident that the tenant demand is still there.”

While vacancy rates in some regional centres including Mackay (holding steady at 9.1%) and Gladstone (softening to 7.1%) reflected weaker conditions, Ms Mercorella said southeast corner growth would drive improvements across the state.

“We’re hearing that business confidence is improving in some regional centres as those economies diversify and manage the resources downturn impact,” she said.

Read the full media release on the REIQ website.