Record Low Vacancy Rates Continue to Impact Queensland

The June 2021 quarter data from the Real Estate Institute of Queensland (REIQ) reveals that 22 local government areas out of 35 have either recorded their lowest vacancy rate or equalled it over the last 11 years.

Brisbane City’s vacancy rate dropped from 2.1% to 1.7% from the previous quarter, the Gold Coast’s remained static at a tight 0.6% and the Sunshine Coast’s was slightly higher, from 0.5% to 0.6%.

Around Greater Brisbane, Ipswich stayed at 1%, Logan slightly tightened from 1.1% to 1% while Moreton Bay remained the same at a low 0.7%. Redland was tight at 0.5%, falling from 0.6%, while the Scenic Rim dropped from 0.8% to 0.7%.

REIQ CEO Antonia Mercorella said, “The lifestyle motivation is strong interstate, with people seeking an escape to Queensland from the southern states. According to the Australian Bureau of Statistics (ABS), Queensland recorded a net gain of 9800 interstate migrants in the December quarter – the highest of any state or territory.

“Greater Brisbane also recorded the highest net internal migration rate of any capital city in the December quarter – with 4800 arrivals. By comparison, Sydney and Melbourne lost 9300 and 8500 people respectively. In terms of overseas migration, half a million Australian expats have returned since the pandemic began.

“In May according to the ABS, the number of new housing loans taken out by investors rose 13.3 per cent to $9.1 billion – the highest amount seen since June 2015.

“A return of investors to the market will likely increase the number of rental properties available and reduce pressure on vacancy rates, potentially providing some relief for those struggling to find a rental.”

Rental values

Over the month to 4 August, the capital city asking rents saw a 1.1% increase for houses and 0.7% for units. Outside of capital cities, house rents have grown significantly over the past year, with Perth up by an incredible 13.4%, Canberra up by 15.60% and Brisbane up by 10.80%.

Property prices

Over July, Brisbane, Perth and Melbourne saw asking prices rise by 1.6%, 0.6% and 1.1%, with no change in unit asking prices. Over July, Australian residential listings rose by 1.1%, from 236,218 in June to 238,834 in July.  However, compared to the previous year, listings dropped by 23.6%. New listings (less than 30 days) fell by 1.2% over July nationwide. In comparison to 12 months ago, new listings have grown by 5.4%.