Quarterly figures released last week show no respite for people looking for rental properties.
Despite what analysts called an “immaterial lift”, Logan’s vacancy rates were at a dismal 0.7% for the quarter, as set out in the Real Estate Institute of Queensland’s (REIQ) September report.
In comparison, a healthy vacancy rate is between 2.6% and 3.5%, according to REIQ benchmarking.
In many parts of the state, the September quarter 2022 figures represent the ninth consecutive quarter of sub 1% vacancy rates, as tight conditions firmly set in.
REIQ CEO Antonia Mercorella said it was unlikely vacancy rates would see any significant shifts in the foreseeable future due to complex supply and demand constraints.
“These statistics aren’t just numbers, they tell a story about how challenging it is for people struggling to find a home,” Ms Mercorella said.
“While I wish I could tell these people that we can see light at the end of the tunnel for them, the sad reality is that renters could be enduring this tight market for some time.
“In Queensland, the average household size has reduced to only 2.5 persons per dwelling, which has put extra strain on our housing supply – and that’s even before looking at the extraordinary external pressures from high levels of migration, and immigration to come.
“We know there are various obstacles which have been holding back our state’s housing supply and pathways to home ownership. This is what needs to be rectified in order to restore some balance to the market and address the true cause of the crisis – while also finding remedies for the symptoms.”
Ms Mercorella said that the state government had identified that Queensland has 55,000 fewer rental dwellings than expected based on historical trends and forward projections.
“Some of this sizeable rental market shortfall was accounted for, but the remaining ‘missing’ properties were not able to be explained,” she said.
“We have been warning for some time now that regulatory intervention, including more onerous lending changes and tougher tenancy laws, has an impact on investment.
“Increasingly, we are also seeing investors charged at higher rates for property related fees and expenses, including stamp duty costs, higher local government fees, and mortgage repayments.
“In the face of these challenges, we are seeing some investors making the choice to exit the market and more needs to be done to retain and attract investors to the long-term rental market to pump up the rental pool and boost vacancy rates.”
Inner city Brisbane saw a more noticeable change over the quarter, dropping to a record low of 0.8 percent – the first time this market has dropped below 1.0 percent in the past decade. This could suggest a return of workers to the CBD and a renewed demand for inner-city living post Covid-19.
