Rental strength for Queensland
New figures from the Real Estate Institute of Queensland (REIQ) show that rental markets are steadying as the market gears up for the busy spring sales period.
This update comes from the REIQ residential survey, conducted across accredited agencies in June. REIQ Acting CEO Antonia Mercorella has commented on the sales surge, saying that "[h]istorically in Queensland we tend to see one market thriving more than the other and at the moment it's the sales market that has the upper hand."
She adds that while rental vacancy numbers continue to be tight in many Queensland areas, they are inching upwards in others.
"This is the result of strengthening first home buyer activity, which is reducing tenant demand, along with increased investor activity which is increasing the rental supply in some areas," Ms Mercorella adds.
Regional rent reductions
According to new figures from the Residential Tenancies Authority (RTA), there was a drop in bond lodgments for the June quarter for three bedroom houses, two bedroom units and three bedroom townhouses. Ms Mercorella has noted that median rent prices from the RTA have gone down in Gladstone, Rockhampton and Mackay. The decreases for Gladstone have been notable, down $150 and $140 in the last year for three bedroom houses and two bedroom flats respectively.
Rental listings in Rockhampton tend to be on the market for more than four weeks, but they are also seeing small reductions in overall vacancy figures. The star regional area is Toowoomba, which has a vacancy rate that has not climbed above 2 per cent since December 2011. Townsville recorded an all-time REIQ high figure of 5.4 per cent vacancy, which is suggested to be due to below-market rents pressuring rental properties down.
Tourism hotspots thriving
Ms Mercorella has indicated that in spite of rising sales activity, Queensland's primary tourism areas are lasting performers for vacancy rates. The Gold Coast saw vacancies drop to 1.7 per cent, the lowest result since December 2012, while Noosa, Cairns and the Fraser Coast also enjoyed ongoing low rental vacancy rates.
RP Data's Quarterly Rental Report revealed Brisbane experienced a jump in rental rates, increasing by 1.3 per cent.
With the rental market enjoying this period of strength and stability, now may be a good time to capitalise and purchase property for investment. These factors, combined with Australia's low interest rates, makes now a good time to contact a property expert.