Middle ring Brisbane vacancy rate rising
The REIQ's quarterly vacancy rate reveals that Brisbane’s middle ring experienced a sharp rise in vacancies, while the inner ring remained relatively consistent with the June quarter.
The tightest rental markets in Queensland are Caloundra and Noosa, both 1.2 percent.
The weakest market surveyed is the Burdekin Shire with 9.6 percent.
Regional Queensland yielded positive news, with consistent falls in vacancy rates for Bundaberg, Gladstone, Mackay and Rockhampton.
Brisbane’s inner city (0-5km) vacancy rate for the September quarter has risen from 3.4 percent, to 3.7 percent. The middle ring (5-20km) has risen from 2.3 percent to 4.5 percent.
REIQ CEO Antonia Mercorella said the surprising result in Brisbane’s middle ring was likely due to a combination of factors.
“Inner-city property managers and landlords are particularly sensitive to the oversupply question at the moment and rents have become extremely competitive, luring tenants from the middle ring into the inner ring,” she said.
“Also, a significant level of development has come online in the middle ring and some agents have reported that without being able sell, many of those properties have been put into the rental pool.
“Another contributing factor is that interest rates are very low and with the State Government’s recent boost to the first-home buyer grant from $15,000 to $20,000, that is influencing people’s decision to own rather than rent,” she said.
Greater Brisbane’s vacancy rate remained in the healthy range of 3.3 percent.
Brisbane LGA reached 4.1 percent in the September quarter.
Ipswich has eased, lifting from 1.1 percent in June to 2.1 percent in September. This is still classed as a tight market.
Logan has tightened, moving from 2.8 percent to 2.0 percent.
Moreton Bay has eased slightly, going from 1.7 percent in the June quarter to 2.2 percent in the September quarter.