Rental vacancy rates edged lower across many parts of Queensland last month although a number of cancelled mining projects have led to a spike in rental vacancies in Mackay, new figures show.
“The rental market across Queensland has been constricted for more than two years now,” Real Estate Institute of Queensland (REIQ) CEO, Anton Kardash, said.
“The reasons for this have been the low numbers of investors in the marketplace as well as the generally slow property sales market over the period.
“With the reduction in the numbers of properties being added to the rental pool, we are seeing more demand for a much smaller supply of properties.”
Findings from the Institute’s September Residential Rental Vacancy Rate Survey, compiled from information and data from REIQ accredited agencies and agents, showed most major regions posting vacancy rates of 2.5 per cent or less in September.
A vacancy rate of three per cent is considered to be the equilibrium point of supply and demand.
The vacancy rate in Mackay has increased from 1.7 per cent in June to four per cent in September. According local REIQ agents, the cancellation of projects in the mining industry have immediately carried over into the rental market.
The cancellation of leases due to the relocation of workers, newly-constructed properties becoming available, and some investors moving into their rentals have resulted in the vacancy rate increasing markedly.
Higher-end rents are also reportedly coming down.
Brisbane recorded a rate of 1.7 per cent, down from 2.1 per cent three months before. While the surrounding region – including Ipswich, Logan, Moreton Bay and Redland City – posted a vacancy rate of 2.2 per cent – down from 2.7 per cent at the end of June.
According to REIQ accredited agencies, this fall in vacancy rates was mostly to do with a lack of buying activity from investors as well as some investors opting to sell their properties instead of renting them out.