The Queensland rental market has generally tightened over the year to June 2018 and with this quarter reporting 24 tight markets, up from 19 tight markets in the March quarter.
Brisbane LGA ’s rental market moved from the healthy range, with vacancies of 3.1 per cent in March, to the tight range, with 2.3 per cent in June 2018. However, this market is being described by local agents as patchy, with tenants favouring certain pockets over others.
The rental markets in Greater Brisbane, including the outer Brisbane regions of Ipswich, Logan, Moreton Bay and Redland, are tight with vacancies in the range of 1.2 per cent to 2.5 per cent.
The historically tight markets of the Sunshine and Gold coasts have eased somewhat this quarter, however, they have generally remained within the tight range.
The Fraser Coast rental market tightened more than 1 percentage point, from 1.9 per cent to 0.8 per cent.
Regional Queensland continued strengthening this quarter, with Toowoomba, Mackay, Bundaberg, and Rockhampton operating within the tight or healthy range, representing significant improvement on two years ago when many of these markets were weak.
Only the regional markets of Townsville and Gladstone remain weak, but those economies are showing strong indicators that a solid recovery is on the horizon.
The key findings for June 2018 were as follows:
- Greater Brisbane’s vacancy rates tightened to 2.2 per cent, sitting within the tight range for the first time in nearly three years.
- Redcliffe in Moreton Bay was the tightest market in Greater Brisbane, reporting vacancies of 1.2 per cent.
- Brisbane LGA vacancies tightened from 3.1 per cent in March to 2.3 per cent in June. Inner Brisbane remained operating within the healthy range. However, Brisbane middle-ring vacancies reduced to 2.1 per cent, moving into the tight range.
- The rental market in the tourism centres continued operating generally in the tight range, with vacancies in the range of 0.8 per cent and 3.6 per cent.
- The tightest major centre rental market is Maryborough, with 0.7 per cent vacancy rate (a tightening of 1.8 per cent) from 2.5 per cent in the March quarter.
- Cairns continues to be a solid rental market, with vacancies tightening from 2.1 per cent in March to 1.5 per cent in June.
- Out of the major regional centres, Toowoomba has the tightest vacancy rate, at 1.8 per cent.
- Mackay vacancies tightened to 1.9 per cent, which was last achieved about six years ago.
- Bundaberg vacancies tightened from 3.4 per cent in March to 2.2 per cent in June, supporting the recovery of the regional rental market.
- Townsville and Gladstone rental market remained weak. However, local property managers highlighted that the regional economies are showing signs of recovery, and rental demand seems to be increasing.
- Cassowary Coast is the weakest rental market in Queensland. This market is historically weak but 5.9 per cent is an improvement on recent levels which included 11.5 per cent in December 2017.
- The tightest of all markets in Queensland is South Burnett, where vacancies were recorded at 0.5 per cent.
- The second weakest major centre market is Townsville at 4 per cent vacancy rate. The Townsville rental market has shown signs of improvement over the past 12 – 24 months. In March 2017 the Townsville vacancy rate was 6.2 per cent so this market is clearly moving in the right direction and is headed toward recovery.
- The market that tightened the most from March to June quarters was Maryborough in Fraser Coast.
- The market that has tightened the most over the 12 months from June 2017 to June 2018 was Livingstone followed by Rockhampton.
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