The regions have Queensland's most pronounced rental price movements: Terry Ryder

Terry RyderDecember 7, 2020

The rise and fall of markets across Queensland are graphically depicted by the latest rental data from the state’s Residential Tenancies Authority.

The decline in markets like Gladstone and Mackay is confirmed by the figures (based on new rental bonds lodged in the June Quarter), while the rise of others like the Sunshine Coast and Rockhampton is equally evident

There has been moderate growth in Brisbane City, with the median weekly rent for three-bedroom houses up from $400 a year ago to $410 now and the median rent for two-bedroom units up from $385 to $390.

There has been rental growth in some of the outer reaches of the Brisbane metropolitan area, with the median rent for Redcliffe rising from $325 to $340, while Redland City has increased from $365 to $380 and Ipswich City has moved from $280 to $290.

But the most pronounced movements have been seen in the regions. Toowoomba, the major regional city for the Surat Basin region where coal seam gas is driving economic growth, has recorded a rise from $280 to $300 a week for three-bedroom houses.

The towns in the heart of the Surat Basin CSG country have had much bigger increases: Chinchilla has risen from $365 to $450, Miles from $350 to $500 and Wandoan has jumped from $220 two years ago to $600.

Mount Isa, a mining town that’s still strong because its resources sector is not based on coal, has seen median rents for three-bedroom houses move from $500 two years ago, to $540 in 2012 and to $580 today.

Some of the tourism-based coastal markets which have struggled for several years, but are now mounting comebacks, have recorded solid rental increases for houses.

They include the Sunshine Coast (up from $270 to $380), Cairns (up from $320 to $330) and Hervey Bay (up from $270 to $280). All three have also had increases in median rents for two-bedroom units.

But central Queensland locations with a strong reliance on the resources sector have seen significant falls in rental levels, as further evidence that those markets are declining.

Gladstone and Mackay, both impacted by over-building which has pushed up vacancies, have had consequent drops in rental levels. The Gladstone median for houses is down from $520 to $480, while Mackay has dropped from $460 to $440.

But the worst affected is Emerald, where cutbacks in the Bowen Basin coal industry have hurt. It has recorded a sharp decline from $650 to $400 in 12 months. Emerald will recover when one or two of the mega projects planned for the nearby Galilee Basin start construction

The relative strengths and weaknesses of the Gold Coasts are also reflected in the rental data. The median rent for three-bedroom houses has risen steadily since 2011 from $400 to $405 to $420 today, but there has been no growth for two-bedroom units.

Some sectors of the Gold Coast unit market – in the north and the west – have recorded decreases in median weekly rents.

Terry Ryder is the founder of hotspotting.com.au

Terry Ryder

Terry Ryder is the founder of hotspotting.com.au.

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