The Queensland property market may soon see an increase in investor activity with rental vacancy rates tightening across the state in September, according to the Real Estate Institute of Queensland (REIQ).
The REIQ’s September residential rental survey found the low number of investors in the property market contributed to the tightening of vacancy rates between June and September this year.
“The number of investors in Queensland continues to be below historical averages. What this means is that there is not the usual number of investment properties being added to the overall rental pool, which is putting a strain on supply,” REIQ managing director Dan Molloy said.
“The recent interest rate cut, as well as soft property prices, are likely to make investment property a more attractive proposition for investors so we will hopefully see more activity from this type of buyer in coming months.”
Five local government areas (LGAs) recorded a vacancy rate less than two per cent in September, up from just two LGAs at the end of June, while nine LGAs recorded a vacancy rate between two and four per cent.
The REIQ said the vacancy rate in Brisbane is 2.3 per cent, while Logan recorded 1.8 per cent, while the tourism centres of the Gold, Sunshine and Fraser coasts, as well as Cairns, "are still experiencing an oversupply of stock, however, the vacancy rate in Cairns improved to 3.1 per cent in September."
"Central Queensland mining areas are the opposite of our tourism top spots with demand far out-stripping supply as a number of multibillion-dollar projects attract thousands of new residents," the REIQ said.
"The vacancy rate in Gladstone in September was 0.7 per cent."