Sunshine Coast, Gold Coast rental market tight: REIQ

The Gold Coast, Sunshine Coast, Ipswich, Caboolture, Caloundra and Noosa all have rental vacancy rates of less than two percent according to the REIQ March quarter Vacancy Rate Report.

Chief executive officer of the REIQ Antonia Mercorella said the Sunshine Coast has had tight conditions for more than four years and rental accommodation can be very challenging to find and believes the local market needs dwelling construction.

REIQ CEO Antonia Mercorella said the data showed that specific markets in southeast Queensland were crying out for greater investment and more housing construction, adding that negative gearing has contributed to rental affordability - benefitting one-third of Queenslanders who rent. 

“With the national debate focused on negative gearing it’s important to remember that negative gearing has been critical in maintaining a supply of investors to the market who provide rental accommodation, and this has also helped keep rent levels in check,” she said. 

"The tightest vacancy rate in Queensland is the Sunshine Coast Hinterland, with 0.9 percent, which includes towns such as Maleny, Nambour and Eumundi. Cairns has been the standout regional centre, with further tightening of the vacancy rate, from 2.5 percent down to 2.1 percent. 

“The Cairns property market is showing signs of consistent, solid improvement and this is a reflection of the broader economy which has rebounded well from the post-GFC woes. There are some great signs of recovery in Cairns, including significant levels of development already taking place.”

Brisbane's inner-city CBD recorded a drop from 3.1 percent to 3.0 percent. 

“The inner 5km ring is at 3.3 per cent and the middle ring is at 2.5 per cent – these levels continue to fall within what the REIQ considers the healthy range,” she said. 

“We are clearly not oversupplied – at this stage.”