North Queensland vacancy rates have continued to nosedive, with some towns experiencing their tightest rental markets on record.
Townsville recorded its lowest ever vacancy rate during the June quarter, falling to just 1.7 per cent, according to the latest REIQ Vacancy Rate Report.
That’s down from 2.9 per cent in March, and the record high for the city of 7.1 per cent in September 2016.
The vacancy report has been collating data across the state since December 2008.
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The Burdekin, which had an unenviable vacancy rate above 10 per cent in December 2015 and December 2016, has seen its stock of available rental properties shrink to just 1.1 per cent in the June quarter, down from 3.2 per cent in the March quarter.
Charters Towers saw one of the biggest drops in vacancy rates, falling from 5 per cent in March to just 1.5 per cent in the June quarter.
The Mount Isa market has also tightened, dropping from 2.5 per cent to just 0.5 per cent.
Rental vacancies on the Cassowary Coast have tightened from 4.9 per cent to 2 per cent.
Real Estate Institute of Queensland (REIQ) chief executive Antonia Mercorella said that about 70 per cent of Queensland’s rental market was facing “extremely tight conditions”.
“In fact, the tightest conditions seen in Queensland since the global financial crisis,” she said.
Real Estate Institute of Queensland CEO Antonia Mercorella Picture: Richard Walker
Ms Mercorella said there had been a shift towards cheaper rental options in the outer urban and regional areas as a result of COVID-19, putting pressure on established stock.
“The rental sector plays a critical role in Queensland’s housing system and the role and size of our investor market has never been so important,” Ms Mercorella said.
“Any further tightening in rental availability levels will only place additional undue pressures on our housing sector, which 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.”
FOR RENT: 18 Macquarie Street, Jensen is listed for $800 a week
John Gribbin of John Gribbin Realty said their vacancies were “virtually zero”.
“The number of properties you could move into today is small, maybe half a dozen,” Mr Gribbin said.
“A lot of people are staying put and others are moving into town, so the population is growing. Some of it is COVID-19 – people wanting to get out of the big cities.
“But it is not just that. The building sector is picking up with new residential estates popping up, mining is strong.
“There is a definite pick-up in town.”
FOR RENT: 5/39 Quinn St, Rosslea is listed for $290 a week
Mr Gribbin said that while there were still some properties yet to come back on to the market after the floods, there were not many left to list.
“Really, I wouldn’t be above 1 per cent (vacancy rate),” Mr Gribbin said.
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