Empty apartments a concern for anxious off the plan Brisbane landlords

Apartment supply in inner Brisbane exceeds demand, pushing the vacancy rate to 4%, according to REIQ December quarter rental data.

Inner Brisbane (0-5 kilometre ring) vacancies rose from 3.7% in September last year to 4% in the December quarter, however the middle ring tightened from 3.4% to 2.1%. 

The REI advised the vacancy rate of inner Brisbane had only reached 4% or higher twice before – December 2013 when it reached 4.1% and March 2017 when it peaked at 4.4%, the highest level since records began in 2008. 

REIQ CEO Antonia Mercorella said this news was disappointing for investors, but not unexpected give strong levels of apartment supply coming to the market. 

“Approvals have fallen in the past six months and we know that this period - where supply exceeds demand - is likely to be only temporary thanks to a steadily growing population and consistent demand for inner city accommodation,” she said. 

“Just how temporary is difficult to predict but our expectation is that demand will start to catch up to supply very quickly and vacancy rates will return to the typically healthy levels this market usually achieves of around 2.5 – 3.5%.”  

The middle ring (5-20 kilometres) is affordable, and in most suburbs there is the convenience of good infrastructure and public transport and tenants have a good range of options to suit many budgets, Ms Mercorella said.