Tight rental market continues in QLD – and building falls below target

QLD’S tight rental market has been characterised by quarter after quarter of tight vacancy rates, with the strain continuing in the December quarter.

The REIQ residential vacancy rate report shows a 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 covered in the report, vacancy rates tightened in 18, remained stable in 15, and relaxed in 17 this quarter.

REIQ chief executive 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.”

Ms Mercorella said that the REIQ, along with a number of housing organisations, had been banging the drum for some time now about the need for more housing supply.

“To solve our housing crisis, Queensland needs a laser focus on addressing housing roadblocks – from infrastructure provision and land release, to labour shortages, tax and regulatory settings, infrastructure fees, and productivity standards,” she said.

“While the groundwork is laid with regional plans to cater to growth, we also need to be looking for ways to tap into the full potential of existing housing supply.

 “With it being early days of a new State Government and only a matter of time before a Federal election is called, we are seeing some promising moves and commitments from governments at all levels recognising that our community expects easing housing pressures to be a top priority.” 

Ms Mercorella said that recent ABS dwelling commencements and completions data showed a slow start to meeting the national housing target, particularly in Queensland.

“This is a national problem, but Queensland is falling behind on both the historical average and the target,” she said.

“There were only 8,177 dwellings completed in the September quarter last year – or 32,700 in annual terms. This is well behind the 49,000 dwellings Queensland needs to build each year to do our fair share,” she said.

 “As for the future pipeline of housing, building approvals are also significantly below the target across the states, with Queensland more than 10,000 behind where it needs to be.”