Vacancy rates are stabilising in Logan, which means less homes are available for rent due to the intensity of the property market.
Figures from the Real Estate Institute of Queensland show the numbers of vacant properties have dropped steadily since 2010.
The REIQ’s data shows the rates have changed from 2.3 per cent in 2010 to 1.1 per cent in September this year. To put that in context, SQM research equates a vacancy rate of 2.4 per cent to 305 properties. At 1.1 per cent, SQM research indicates there could be fewer than 250 rentals available in the whole city.
The downside to this is that people will find it harder to find properties and the costs of rent will go up.
“In this tight market, most rental property listings will attract multiple applications, with prospective tenants needing to look for ways to stand out from the competition,” Ms Mercorella said.
There could be reprieve on the way as more investors buy into the housing market and put homes up for rent.
“According to the ABS, new loan commitments for investor housing in Queensland reached $1.86 billion in August, the highest monthly figure since July 2007,” she said.
“More investors in the market should increase the number of properties in the rental pool and begin driving up vacancy rates, relieving stress on renters.”
This is further underscored by SQM data showing the total number of listings in the Beenleigh corridor have more than halved since March 2019, when 3,211 properties were listed for sale compared to 1,634 today.
However, higher investor activity means owner-occupiers are being out-bidded in some instances, thus limiting the opportunities for locals to buy and live in the area.
“This puts owner-occupiers in competition with potential investors in the property market,” Ms Mercorella said.
“In addition, some investors are taking advantage of high capital growth and making a decision to sell their existing properties, which is exacerbating the limited supply of rentals.”
Data analysts are looking closely at what happens to listings as the impact of the Australian Prudential Authority’s tightened home lending conditions becomes clear.
However, Ms Mercorella is confident it will not hinder the market much.
