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Vacancy rates across Queensland edged up in the June quarter, but the Real Estate Institute of Queensland (REIQ) warns the change should “not be mistaken for a turnaround”.
The REIQ’s Residential Vacancy Report for the June Quarter 2025 showed that Queensland’s rental market is operating in tight but stable conditions, with the number of regions that eased outweighing those that tightened during Q2 2025.
Of the 50 local government areas (LGAs) and subregions surveyed in the institute’s report, just four saw vacancy rates tighten, while 15 remained stable, and the majority (31 regions) recorded a relaxation compared to the March quarter.
The REIQ’s data showed that four regions saw a very slight tightening of only 0.1 percentage point over the quarter, with Maranoa easing the lowest vacancy rate of 0.3 per cent, followed by Rockhampton (0.7 per cent), Townsville (0.9 per cent), and Cassowary Coast (1 per cent).
Off the top of this quarterly fluctuation, the report showed that Queensland’s statewide vacancy rate rose slightly from 0.9 per cent to 1 per cent.
Despite the minor increase in statewide vacancies, the REIQ classified 48 of Queensland’s 50 regions as “tight” rental markets that have vacancy rates of 2.5 per cent or below, which is far less than the institute’s “healthy” range of 2.6 per cent and 3.5 per cent.
Cook (0 per cent) and Goondiwindi (0.2 per cent) once again registered as Queensland’s two tightest rental markets, with vacant properties being virtually unavailable in these areas during the June quarter.
At the other end of the spectrum, the two regions of Isaac (4.2 per cent) and Bay Islands (3.7 per cent) entered the “weak” category, which the REIQ defined as vacancy rates above 3.6 per cent.
The REIQ’s data also showed the two weak category entrants also notched up the most notable improvements in vacancy rates over the quarter, with the Bay Islands’ vacancy rate jumping by 1.2 percentage points, and Isaac rising by 1 percentage point.
While the Noosa market’s vacancy rate of 2.4 per cent came the closest to re-entering the healthy range, the REIQ said the easing was likely due to price points in Noosa being largely unaffordable for everyday Queenslanders.
REIQ CEO, Antonia Mercorella, said the quarterly shifts in some regions of Queensland were encouraging, but stressed that the moderation was not a sign of a broader turnaround.
“The June quarter captures a period of natural tenant turnover – the end of the financial year, cooler weather in some parts of the state, and school semester transitions can all prompt moves, opening up some properties that may have otherwise remained tenanted,” Mercorella said.
“Without a meaningful lift in new housing supply, we expect vacancy rates will hover around these tight levels for some time to come.”
Although the REIQ’s data showed the rental squeeze had not worsened over the June quarter, Mercorella argued the persistently tight vacancy rates were a sign that Queensland would require more investors to meet rental demand.
“We’re seeing quarter after quarter of sliver-thin vacancy rate data, showing most of the state could support and sustain greater investment and new dwelling construction,” she said.
Beyond increasing the number of investors in the Queensland property market, Mercorella also highlighted the need for a broader array of housing options that can meet the varying needs of Queensland renters.
“We must ensure housing diversity reflects modern living arrangements – from smaller dwellings, smaller lot sizes and build-to-rent, to accessible and adaptable housing for an ageing population and even options for multigenerational living,” she concluded.
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