Rounding out a year that was characterised by a highly competitive rental market, the REIQ’s latest Residential Vacancy Rate Report released this month shows incredibly tight conditions continued in Queensland over the December 2023 quarter.
Queensland’s statewide vacancy rate dipped slightly over the quarter to 0.9 per cent, reflecting a fairly consistent state of affairs over the course of 2023.
Of the 50 local government areas (LGAs) and sub regions covered in the report, 22 tightened, 13 remained unchanged, and 15 relaxed (but not materially).
Much of the Greater Brisbane area hovered around the 1% vacancy mark including Brisbane LGA (1.1%), Ipswich (1%), Logan (1.2%), Caboolture (1.1%), Pine Rivers (1%), and Redland (1%). Moreton Bay (0.8%) and Redland’s Mainland (0.7%) were tighter still, while Redcliffe had the lowest rate in the region at 0.5 percent. yet again, the only ‘weak’ market in Queensland was seen in Redland’s Bay Islands (including North Stradbroke, Russell, Macleay, Karragarra, Lamb, Coochiemudlo) at 5.7%.
The vast majority of markets remained well within what the REIQ classifies as ‘tight’ (vacancy rates up to 2.5%), and well over half were as low as 1% or below.
It comes as the social housing waitlist climbed to 43,000 Queenslanders in the September 2023 quarter.
REIQ CEO Antonia Mercorella said rental properties were still too thin on the ground to provide comfortable choice for people.
“What we’ve seen over the course of the year, is a rental property pool that’s insufficient and under incredible strain,” Ms Mercorella said.
“A fair proportion of the distress we are seeing can be attributed to inadequate social housing stock.
“In the year to September 2023, only 269 social houses were completed in Queensland, and we know the social housing waitlist continues to grow.
She said for those wondering what lies ahead for the private rental market in 2024, unfortunately, it was difficult to imagine a dramatic turnaround in rental availability.
Fast facts: December Quarter 2023
- 0 – 2.5% = tight
- 2.6 – 3.5% = healthy
- 3.6% – plus = weak
- Queensland Vacancy Rate: 0.9%
- Highest Vacancy Rates: 5.7% in Redland’s Bay Islands,
- Biggest falls: -0.6% in Noosa, followed by -0.5% on several coastal markets and Gladstone.
- Biggest rises: +0.6 in Isaac, +0.3% in Whitsunday
The REIQ classes rental markets into three categories, tight, healthy, or weak. These markets are classified according to vacancy.
