Queensland's rental market is currently facing the tightest conditions since the global financial crisis as vacancy rates continue to shrink, according to the latest market report from the Real Estate Institute of Queensland (REIQ).
Roughly 70% of the state's rental markets have "extremely tight" conditions, with the regional market outperforming major metropolitan areas when it comes to rental demand.
Antonia Mercorella, CEO of REIQ, said any further tightening in the rental availability will place undue pressures on the state's housing sector.
"This is why more needs to be done to better support both increased and ongoing property investor activity in the Queensland property market and the contributions they make to the state economy," she said.
According to REIQ, around one in three people living in the state is renting. With vacancy rates at their lowest, Mercorella said it will be hard for others to find an affordable home.
In fact, 18% of Queensland regions have less than 1% vacancy rate. Some of the lowest vacancies are in Maryborough (0.4%), Fraser Coast or Mount Isa (0.5%), Gympie (0.9%), and Rockhampton (0.7%).
Brisbane — weakest market?
The state's only "weak" rental market can be found inside Brisbane's five-kilometre city-circle, where the vacancy rate is at 3.9%. Significant postcodes have substantially higher vacancies.
Mercorella said Brisbane has been hit harder due to the impacts of COVID-19, making it likely to see a drop in rents. This, in turn, will result in tenants eventually returning to the city.
"However, much of it will also depend on the commercial and retail sector's ability to rebound. It's very much a 'watch this space' situation unlike anything we've ever experienced," she said.
||Gross Rental Yield
||12 month Growth
||Average Annual Growth
|Charters Towers City
|| 135 500
Source: CoreLogic, August 2020
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