Brisbane’s rental market softening, Logan vacancy rate jumps by 1.6%

The latest Real Estate Institute of Queensland Residential Rental Survey has seen the vacancy rates creep up across Brisbane, with some areas recording increases up to 1.6%.

In Brisbane City, the figures were recorded at 2.4%, compared to 2.3% for the March quarter. This was described by the REIQ as a steady trend and indicating a tight market. Within inner Brisbane (zero to five kilometres from the city) a 0.3% increase to 3.4% was recorded, with a ‘healthy’ result. This appears to be largely affecting the overall slight increase, as the remainder of Brisbane dropped from 1.9% to 1.7%.

The latest figures from the Residential Tenancies Authority also seem to back up these figures, recording a decline in the number of bonds lodged over the June quarter for three-bedroom houses, two-bedroom units and three-bedroom townhouses compared to the March quarter.

In Greater Brisbane surrounds, with an average 2.2%, the highest area’s vacancy rate for June 2014 was recorded in Ipswich City at 3.0%, up from 1.8% in the March quarter. This increase was similarly reflected in Logan City, up 1.6% to 2.8%, the highest increase across Brisbane. These figures appear to have driven the overall Brisbane Surrounds 0.7% vacancy rate increase.

Steady results were seen in Moreton Bay Regional (1.7%) and Redland City (1.5%).  Within Moreton bay Regional, Caboolture was the only area to record a softening, up by 0.4%. Pine Rivers and Redcliffe dropped slightly, by 0.1% and 0.2% respectively.

Redland City, Bay Island’s vacancy rate increased by 0.1%.

Across the entire Queensland rental market it’s a mixed picture, however REIQ acting CEO Antonia Mercorella said that the stabilisation coincides with a surge in sales.

“Historically in Queensland we tend to see one market thriving more than the other and at the moment it’s the sales market that has the upper hand,” said Mercorella.

“Vacancy rates still remain tight in many parts of the State, however according to REIQ members the rental market is starting to stabilise, with vacancies creeping up in some areas.

“This is the result of strengthening first home buyer activity, which is reducing tenant demand, along with increased investor activity which is increasing the rental supply in some areas,” she said.

The Residential Rental Survey is carried out at the end of June across the REIQ-accredited agencies in the state.