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The CEO of the Real Estate Institute of Queensland (REIQ) warned that a “meaningful reprieve” for Queensland’s tenants remains a pipe dream.
The REIQ’s latest Residential Vacancy Rate Report for the final quarter of 2023 found that “incredibly tight conditions” continue to impact Queenslanders who rent.
The state’s overall vacancy rate is now just 0.9 per cent, substantially below the 2.5 per cent threshold that indicates a “tight” rental market, per the REIQ.
“What we’ve seen over the course of the year, is a rental property pool that’s insufficient and under incredible strain,” said REIQ CEO Antonia Mercorella.
“There are many predicting that the worst is yet to come, and while we remain hopeful it’s hard to see meaningful reprieve any time soon, as cost-of-living pressures continue to climb for both renters and lessors,” she said.
According to the new data, 44 per cent of local government areas (LGAs) saw rental vacancies fall even further in the December quarter, with a further 26 per cent staying static.
Only 30 per cent of LGAs saw a lift in vacancies, and the REIQ stressed that they did not relax “materially”.
In total, over half of all Queensland rental markets are now seeing vacancy rates of below 1 per cent.
Ms Mercorella clarified: “It’s not necessarily that rentals are impossible to find everywhere in our state, it’s the imbalance between the sheer demand and shortage of rentals at certain price points and locations that’s out of kilter.
“Many are finding it’s a lot less hassle to renew their existing lease than to risk re-entering the fast-moving market, especially if they are attached to their area.”
Of particular concern is the number of Queenslanders who are on the waitlist for social housing, with December seeing the waitlist rise to 43,000 people.
“It’s very concerning that families in need are being forced to join the queues in the private rental market because there’s no social housing available to them and no hope on the near horizon of getting to the top of the waitlist,” said Ms Mercorella.
She attributed much of the distress experienced by Queenslanders on the waitlist to “inadequate social housing stock”.
“In the year to September 2023, only 269 social houses were completed in Queensland, and we know the social housing waitlist continues to grow,” Ms Mercorella stated.
“While we welcome initiatives such as the purchase of a hotel in South Brisbane to provide housing to those in need, the built-up demand is clearly far greater than the rate of social housing delivery.”
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