Heading into this year, rental tenants were hoping for better things – that the property market might correct itself and again fall in their favour.
Most agree, it’s been a good year for investors and sellers.
But new vacancy figures released by the state’s peak body for real estate, the Real Estate Institute of Queensland, show just how limited housing supply is, following a similar downward trend from late last year.
The REIQ classifies a healthy vacancy rate as anywhere between 2.6% and 3.5% of the market.
Of 50 local government areas and sub regions reported on, the only areas that tipped into the healthy range during 2021 were within Brisbane.
In the September quarter, when the results were last recorded, Logan had a 1.1% rate but by December it was back down to March levels at just 1%.
The last time Logan recorded a “healthy” supply was in June 2019 when the local market had 3.9% vacancy.
Raine & Horne Greenbank selling agent Margaret McFillin said it was no surprise.
“It’s pretty much always been the case in our area,” she said.
“I think it’s because there’s more people wanting to come out here than what we have available.”
Ms McFillin said even when there were large vacancies closer to the CBD, Greenbank has always been a tough rental market.
She also reminded prospective tenants how important it is to have a good rental history.
“If they’ve been missing out, it’s usually because there’s something there with the tenant, but as far as some properties, every property I get is usually gone within one to two weeks,” she said.
Neil Giles from Browns Plains Real Estate said the stock levels have not changed much since last year.
“It’s good for an investor,” he said.
“Prices are probably slightly on the increase, which is the first time for many years in here.
This is happening because the rental market is playing catch up with the sales market, which has moved substantially in two years.
“To keep investors in the market, the rental market has got to catch up with the sales to get the returns, so we are seeing rental prices increase in the area,” Mr Giles said.
The REIQ’s CEO Antonia Mercorella said the low vacancy rates are not a good sign for high-growth areas with new employment prospects.
“Demand for rental properties in Queensland will continue to rise along with the rising population and that growing population needs a roof over its head,” she said.
“With vacancy sitting at 0.1%, where these workers will live is puzzling.”
