FROM THE REAL ESTATE INSTITUTE OF QLD
Queensland’s rental market in 2024 was characterised by quarter after quarter of tight vacancy rates, with the strain on rental supply continuing in the December quarter.
The Real Estate Institute of Queensland’s (REIQ) residential vacancy rate report for the final quarter of 2024 shows a statewide vacancy rate of 1.0% – mirroring the rate of the previous two quarters and only slightly increasing from 0.9% in the first quarter.
Of the 50 local government areas and sub-regions covered in the report, vacancy rates tightened in 18, remained stable in 15, and relaxed in 17 this quarter.
Cook (0.0%) retained the unenviable position as the tightest region in the state, with Goondiwindi and Charters Towers only just moving the dial at 0.1%.
At the other end of the spectrum, the Bay Islands (3.5%), including North Stradbroke, Russell, Macleay, Karragarra, Lamb, and Coochiemudlo, held a healthy vacancy, along with Isaac at 3.2% – the only other healthy rental market in the report.
The December quarter delivered some strong seasonal swings, with holiday hotspot Noosa’s vacancy rate halving compared to the previous quarter from 2.4% to 1.2%.
REIQ CEO Antonia Mercorella said reporting on ‘little to no vacancies’ had begun to feel like a broken record, with nearly every region recording a vacancy rate in the tight range and well below a healthy rating of 2.6-3.5%.
“Despite the movements over the quarter and over the year, 48 out of the 50 regions in the report have landed in what we classify as a tight rental market,” Ms Mercorella said.
“A tight vacancy figure tells a story of fewer properties becoming available for rent, and for those that do, they are not considered ‘vacant’ until they’ve been listed for over three weeks.
“The ugly reality is that when you have a prolonged tight rental market like this, everyone feels it. We know that the most vulnerable in our community are the hardest hit; however, its impact is felt at all levels, including amongst those with higher or double incomes.”
Regarding the biggest falls and rises in vacancy rates in the December quarter, Ms Mercorella explained some seasonal factors could be at play. However, it was difficult to pinpoint the cause.
“It’s not uncommon to see people relocating at the end of the year, and we suspect in the case of Noosa it could be attributed to people taking a ‘try before you buy’ approach – renting and enjoying the summer holidays while waiting for the right property,” she said.
