Queensland rental market remains tight despite slight vacancy increase

The Real Estate Institute of Queensland (REIQ) has reported a marginal increase in vacancy rates across the state, but warns the overall rental market remains under significant pressure.

REIQ CEO Antonia Mercorella said that while half of the 50 areas surveyed saw a lift in vacancies, the vast majority still have extremely tight rental markets.

“A healthy vacancy rate is one that sits between 2.6% to 3.5% and that’s virtually unheard of at the moment in Queensland,” Ms Mercorella said.

The statewide vacancy rate rose slightly to 1.0% in the June 2024 quarter, up from 0.9% in the previous quarter. However, 47 out of 50 areas surveyed still had vacancy rates classified as ‘tight’.

In Brisbane, only 1.2% of rental properties were available and advertised for more than three weeks during the quarter.

Ms Mercorella highlighted the severity of the situation in regional Queensland, where nine areas reported vacancy rates of 0.5% or lower. Cook recorded a 0.0% vacancy rate, while Goondiwindi sat at just 0.1%.

“We are not painting a picture of good health in our state when it comes to balancing rental demand with supply, and we know competition is particularly intensified at the highly sought after, more affordable end of the market,” she said.

Only two areas – Noosa (2.6%) and Mount Isa (2.7%) – registered ‘healthy’ vacancy rates, while Redland’s Bay Islands tipped into the ‘weak’ category at 3.7%.

The biggest improvement was seen in Noosa, where the vacancy rate increased by 0.7 percentage points. However, Ms Mercorella cautioned that these rises might be seasonal.

Ms Mercorella advised property owners with vacant rentals to consult their property managers about potential improvements or market adjustments.

The REIQ’s report underscores the ongoing challenges in Queensland’s rental market, with tight vacancy rates indicating a significant imbalance between supply and demand for rental properties across the state.