Property Buzz

Money & market

Queensland’s rental crisis deepens as vacancy rates remain at one per cent

post-header
Photo by Ivan Samkov

The Queensland rental market has remained under severe pressure with vacancy rates stuck at one per cent during the December quarter of 2024.

New data from the Real Estate Institute of Queensland (REIQ) showed 48 out of 50 regions recorded tight rental conditions, with some areas having virtually no available properties.

Cook region reported zero vacancies, while Goondiwindi and Charters Towers recorded just 0.1 per cent availability.

REIQ CEO Antonia Mercorella said the situation had become a persistent challenge across the state.

“Despite the movements over the quarter and over the year, 48 out of the 50 regions in the report have landed in what we classify as a tight rental market,” Ms Mercorella said.

Only two regions showed healthy vacancy rates above 2.6 per cent – the Bay Islands at 3.5 per cent and Isaac at 3.2 per cent.

Popular tourist destination Noosa saw its vacancy rate plummet from 2.4 per cent to 1.2 per cent during the quarter.

==
==

“It’s not uncommon to see people relocating at the end of the year, and we suspect in the case of Noosa it could be attributed to people taking a ‘try before you buy’ approach – renting and enjoying the summer holidays while waiting for the right property,” Ms Mercorella said.

The state is failing to meet its housing construction targets, with only 8,177 dwellings completed in the September quarter – far below the annual requirement of 49,000 new homes.

Building approvals also remained significantly behind target, with Queensland more than 10,000 dwellings short of required levels.

Ms Mercorella said addressing housing roadblocks was crucial for solving the crisis.

“To solve our housing crisis, Queensland needs a laser focus on addressing housing roadblocks – from infrastructure provision and land release, to labour shortages, tax and regulatory settings, infrastructure fees, and productivity standards,” she said.

The REIQ classifies rental markets with vacancy rates below 2.5 per cent as tight, while rates between 2.6 and 3.5 per cent are considered healthy.

Previous post
Next post
Leave a Reply

Your email address will not be published. Required fields are marked *