Rental markets remain tight in south east Queensland, with improvement in some of the key regional markets, says the Real Estate Institute of Queensland (REIQ).
According to the latest REIQ Residential Rental survey conducted at the end of September, vacancy rates remained relatively steady across most parts of the state, with improvements in some key regional markets.
REIQ chief executive Antonia Mercorella said only four of the 16 major regions in Queensland recorded a significant change in vacancy rates, with something of a two-tier affect still evident in the state’s rental market.
“Logan and Ipswich are emerging as the south east’s rental hotspots as tenants move further afield from inner-Brisbane in search of more affordable rents,” she said.
“For the rent you’d pay for a three-bedroom house in Brisbane, you can get a four-bedroom house in Brisbane’s outlying areas for up to $65 less a week.
“That’s why both Logan and Ipswich are now very tight rental markets, with the lowest vacancy rates in the Greater Brisbane region,” she added.
Ms Mercorella said at the end of September, the Brisbane City Local Government Area (LGA) recorded a vacancy rate of 2.3 per cent, relatively unchanged since the end of June.
The vacancy rate for the greater Brisbane area at the end of September, excluding the Brisbane City LGA, returned to that recorded 12 months ago, at 1.7 per cent, she added.
“Vacancy levels in the Moreton Bay and Redland City council areas remained relatively steady over the three months to September, with both recording 1.8 per cent,” she said.
“While not quite as tight as Logan and Ipswich, strong investor activity and tenant demand are setting the scene for competitive rental markets in both LGAs.”
Ms Mercorella said Queensland’s tourism centres continued to record tight rental conditions.
“On the Sunshine Coast, the vacancy rate is at one per cent, the lowest of any major region in the state,” she said.
“Population growth and a lack of investor activity are contributing to these tight conditions, particularly in hinterland areas where agents are struggling to find enough rental properties to meet demand.
“On the Gold Coast rental conditions remain tight with a vacancy rate of 1.9 per cent at the end of September, with median weekly rents remaining stable over the September quarter.”