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The first quarter of 2022 has seen vacancy rates severely tighten throughout Queensland, with over half the 50 local government areas (LGAs) reporting record lows.
The data, released as part of the Real Estate Institute of Queensland’s (REIQ) Residential Vacancy Report for the March 2022 quarter, revealed that the state’s vacancy rate fell to 0.7 per cent, with the state’s capital, Brisbane, reporting the largest drops.
Statewide vacancy rate decreases have resulted in 18 LGAs reaching their lowest recorded available rentals for the past decade, while another 10 LGAs reported reaching equal-lowest vacancy rates for the past decade.
Vacancies in inner Brisbane (0-5 kilometres) dropped to 1.5 per cent, middle Brisbane (5-20 kilometres) fell to 0.9 per cent, while the city’s outer regions tumbled to 0.6 per cent.
The areas with the tightest markets in the state are the Tablelands and Southern Downs – where vacancy rates sit at 0.1 per cent for the March quarter – and Maryborough, South Burnett, Gympie, and Goondiwindi, which all reported vacancy rates of 0.2 per cent.
The Redland’s Bay Islands recorded the state’s highest number of available homes, at 2.8 per cent, meaning the area is the only Queensland region to report what the REIQ calls a healthy vacancy rate of between 2.6 to 3.5 per cent.
REIQ chief executive Antonia Mercorella noted that the statewide decrease in vacancies could be attributed to several factors, including the return of international students and an influx of interstate migration. She also believes the rate decreases, particularly throughout the state’s capital of Brisbane, where vacancy rates have dipped to 1.1 per cent, highlight a renewed interest in city living.
“While we continue to see regional markets gradually tightening, Brisbane’s vacancy rates have taken a dramatic dive this quarter, especially when looking at the 0-5 km inner Brisbane ring,” Ms Mercorella said.
“This drop could reflect the return of international students as well as hospitality and entertainment workers to the inner city, or simply prospective renters focusing their search in areas where the vacancy rate is healthier, and they have more options and therefore better prospects.”
She added, “Queensland has also had a steep population boost from interstate migration, with those making the shift to the Sunshine State potentially deciding to start their life in the heart of the capital city.”
Additionally, Ms Mercorella also attributed the displacement caused by February’s flooding disaster as well as the rise in statewide owner-occupier purchases as two contributing factors to the lack of rentals.
“With the second stage of rental reforms looming, the last thing we need right now, in the midst of a rental crisis, is legislative reform which undermines investor confidence,” she said.
“With record low vacancy rates, and 36 per cent of our population renting their homes, we can’t afford to reduce the appeal of investing in Queensland. That’s why we’ll continue to advocate for fair and balanced legislation that maintains a level playing field for both investors and tenants.”
Queensland’s vacancy rates are reflective of a larger national trend of tightening rental markets, with southern neighbour NSW also reporting low vacancy rate levels for March and Victorian capital Melbourne reporting its lowest vacancy rate, 1.8 per cent, since March 2020.
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