{"id":4655,"date":"2024-11-13T19:28:35","date_gmt":"2024-11-13T09:28:35","guid":{"rendered":"https:\/\/theonsitemanager.com.au\/news\/?p=4655"},"modified":"2024-11-13T19:28:38","modified_gmt":"2024-11-13T09:28:38","slug":"low-vacancy-rates-are-the-new-normal-says-reiq","status":"publish","type":"post","link":"https:\/\/theonsitemanager.com.au\/news\/low-vacancy-rates-are-the-new-normal-says-reiq\/","title":{"rendered":"Low vacancy rates are the new normal, says REIQ"},"content":{"rendered":"\n

The Real Estate Institute of Queensland (REIQ) has released its residential vacancy rates report for the September 2024 quarter, with the peak body noting that tight conditions appear to be \u2018the new normal\u2019 for the rental market.<\/p>\n\n\n\n

Of the 50 local government areas and sub regions covered in the report, vacancy rates tightened in 19, remained unchanged in 18, and relaxed in 13 this quarter.<\/p>\n\n\n\n

Most changes were a modest 0.1 – 0.2 percentage points. Exceptions included Mount Isa, Redland\u2019s Bay Islands and Lockyer Valley where tightening rates were more pronounced. In contrast, Cairns, Tablelands and Isaac experienced slight rate relaxations.<\/p>\n\n\n\n

Overall, low vacancy rates continue to dominate the state, with the vast majority of areas classified as \u2018tight\u2019 \u2013 about half reporting rates below 1.0%, and a few as low as 0.1% and even zero. The statewide vacancy rate remained at 1.0%.<\/p>\n\n\n\n

Far North Queensland reported some of the tightest rates in the state \u2013 most notably in Cook (0.0%), but Mareeba (0.4%), Tablelands (0.5%) and Cairns (0.9%) closely followed.<\/p>\n\n\n\n

REIQ CEO Antonia Mercorella said the September quarter results showed the significant work ahead for the new State Government to grow housing supply and revive the rental market.<\/p>\n\n\n\n

\u201cWhile low vacancy rates appear to be the new normal, the new State Government should not simply accept this trend,\u201d Ms Mercorella said.<\/p>\n\n\n\n

\u201cThese figures may just be numbers, but they carry real human consequences. For example, the scarcity of housing options in Cairns is reportedly making it near impossible for job seekers to relocate there.<\/p>\n\n\n\n

\u201cSimilarly, some individuals are unable to find suitable rentals in their communities and are left with no option but to move elsewhere.<\/p>\n\n\n\n

\u201cWe need to be working towards achieving a healthy vacancy rate that meets the housing needs of all Queenslanders and supports the state\u2019s growth.<\/p>\n\n\n\n

\u201cThat\u2019s why the Crisafulli Government\u2019s pledge to deliver one million homes by 2044 \u2013 including 53,000 new social and affordable homes \u2013 is critically important, as is fostering an investment-friendly regulatory environment.\u201d<\/p>\n\n\n\n

Ms Mercorella stressed that although rental properties were generally leased quickly, cost of living pressures were seeing higher priced properties sit on the market for longer.<\/p>\n\n\n\n

\u201cWhat we\u2019ve been seeing for a while now is a two-speed rental market – where comparatively affordable properties are snapped up rapidly, and higher priced properties are sitting empty and idle for longer,\u201d she said.<\/p>\n\n\n\n

\u201cSavvy investors are mindful that a quickly leased property at a reduced price may be more beneficial than a higher price that remains untenanted for weeks \u2013 it\u2019s important to listen to the market\u2019s feedback.<\/p>\n\n\n\n

\u201cHouseholds are tightening their purse strings and effectively tenants have put their own caps on what they are willing to budget, or can afford, for rent.<\/p>\n\n\n\n

\u201cDespite low vacancy rates, this doesn\u2019t guarantee all rentals will be leased quickly, unless prospective tenants can see the value in the property\u2019s amenity, location, or lifestyle.\u201d<\/p>\n\n\n\n

Fast facts: September Quarter 2024<\/u><\/u><\/strong><\/p>\n\n\n\n