Regional Queensland hopeful for a rental recovery

By |
Areas in regional Queensland are hoping infrastructure investment announced in the recent state budget will help their rental markets improve following the downturn in the resource sector.

Rental vacancy figures released recently from the Real Estate Institute of Queensland (REIQ) show that a number of regional centres are still experiencing high vacancy rates, though some centres are showing signs of a recovery underway.

“We can see those towns, where employment rates are stronger and opportunities are greater, that the rental market is recovering more quickly,” REIQ chief executive officer Antonia Mercorella said.

“The State Government has announced a range of regional infrastructure projects in its recent budget and these will doubtless impact on the vacancy rates in the coming quarters,” she said.

Mackay is one location where improvement is being seen, with the coastal centre’s vacancy rate down by 0.3% to 9.1% over the June quarter.

Mercorella said incentives being offered by landlords and agents have helped Mackay’s recovery as an oversupply of dwellings is slowly absorbed.

Townsville has seen a similar level of recovery, with a 0.6 decrease over the June Quarter to 5.3% after a spike at the end of March.

There could be more improvement for Townsville in the near future, with its unemployment levels hopefully reduced as government spending kicks in.

“Unemployment still a major issue for the region, however, with a new school being announced in the budget and the continued stabilising presence of government employers such as the Defence Force, Townsville seems to be headed in the right direction,”  Mercorella said.

Toowoomba also saw a small decrease, with a quarterly drop of 0.1% drop to 3.1%.

On the other side of the coin, Bundaberg recorded its highest vacancy rate since March 2009 as it increased by 0.5% to 4.6% over the quarter, but there is some optimism for the region.

“The State Government’s Budget measures targeting Bundaberg and the Wide Bay region will bring a welcome boost to this market, creating jobs and stability for the region,” Mrecorella said

“More than $660 million has been allocated to projects throughout this region, encompassing Bundaberg, Fraser Coast, Kingaroy, Nanango and Gympie and will boost the gas pipeline, hospital and emergency services.”

There is less positivity surrounding Rockhampton where the vacancy rate has increased to 6%, with no decrease expected in the near future.

The mining slowdown has seen an increase in Gladstone’s vacancy rate as tenants leave the area, however building in the region has also fallen off which is expected to help the current over supply level to fall.

Can you afford to buy in this suburb? Find out how much you can borrow

Top Suburbs : flemington , kawana , north epping , east victoria park , homebush

go back

Get help with your investment property

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here