Queensland rental markets improving, but Townsville worsens: REIQ

While vacancy rates across Queensland are declining, Townsville's rental market has worsened since the start of the year, according to the Real Estate Institute of Queensland (REIQ).

Townsville's vacancy rate now sits at 5.9%, with the REIQ attributing the uptick to the city's unemployment issues.

Last month, Herron Todd White's Month in Review report said Townsville's unemployment rate "remains a restraint" for the Townsville market.

Some mining regions showed slight improvements, with Gladstone's vacancy rate sitting at 3.8% after peaking at 7.7% at the end of 2013.

REIQ chief executive Antonia Mercorella said:

"Looking at the figures for Mackay, Rockhampton and Gladstone it is too soon to call this anything other than what it is – a glimmer of hope that a turnaround is imminent.

"We know that in Mackay the local government is focusing on diversifying its key industries and employment prospects are looking up."

However, not all mining towns are strengthening. The oversupply of rental properties in Bowen and Moranbah are contributing to the high vacancy rates in Isaac and Whitsundays respectively. Isaac's vacancy rate is 17.4%, while Whitsundays recorded a 13.5% vacancy rate at the end of March.

The Gold Coast, Brisbane and the Sunshine Coast are all classified as "tight" markets, with the Gold Coast and Sunshine Coast recording the lowest vacancy rates in the state.

"The Gold Coast has recorded its lowest vacancy rate in seven years, with just 1.3% of the market's rental properties vacant," said Mercorella.

"This is a strong indicator that other sectors of the economy may be rebounding and we are buoyed by this news."