Rental Vacancy

<p>EXPERT INSIGHT</p>

<p>The national residential vacancy rate fell from 2.1 per cent to 1.9 per cent in April.</p>

<p>But these figures mask some serious variances across the country.</p>

<p>CoreLogic has already reported rents turning vertical in some markets, and now SQM Research is seeing the same.</p>

<p>This will eventually feed into inflation figures (although the ABS uses a measure of all rents, not just newly let properties, which will dampen the inflation impact a little).&nbsp;</p>

<p>Sydney&#39;s vacancy rate fell to 3.1 per cent in April, now well down from 3.9 per cent a year earlier, and gradually tightening. And Melbourne saw its vacancy rate drop from 4.4 per cent to 4 per cent in April as confidence returns in the city economy.&nbsp;</p>

<p>[smartcode_project:default project_id=90550]</p>

<p>There are still relatively high vacancy rates in the CBD markets as offices remain only half full, while tenants have often eschewed density over the past year.</p>

<p>SQM believes that household sizes have declined, as people shun living together in groups through the pandemic, which intuitively makes sense.&nbsp;</p>

<p>Almost everywhere else rental markets have tightened dramatically.&nbsp;</p>

<p>Brisbane&#39;s vacancy rate fell to 1.4 per cent from 2.8 per cent a year earlier, and every other capital city is now very tight at under 1 per cent.&nbsp;</p>

<p>Some of regional markets have reached crisis point.</p>

<p>I&#39;ve seen it first hand in Noosa, while SQM noted that the Gold Coast and north coast of New South Wales have often seen rental price hikes of about 30 per cent for houses.</p>

<p>Some parts of Perth are seeing the same.&nbsp;</p>

<p>This again goes to demonstrate how &#39;macro&#39; figures are only so useful for property market participants.</p>

<p>Immigration is effectively &#39;switched off&#39; at the moment, yet many rental markets are now feeling the pain of the preceding credit squeeze on investors, with rental supply approaching crisis point.</p>

<p><strong>ACT case study</strong></p>

<p>There was a bit of a debate some years back, where I suggested to a few economists that Canberra&#39;s property taxes would lead to spiralling rents, making Canberra the most expensive place in the country to find a rental.</p>

<p>My contention was essentially thus:</p>

<ol>
	<li>Economists say property taxes won&#39;t lead to rent increases</li>
	<li>Property taxes ratcheted up apace</li>
	<li>Rents spiral</li>
	<li>Economists say record high rents are actually because of something else</li>
</ol>

<p>Or something like that anyway.&nbsp;</p>

<p>COVID-19 threw in a major interruption to normal service last year, but now the double digit increases for Canberra&#39;s asking rents are hoving back into view.&nbsp;</p>

<p>In September 2014 the median asking rent for a house in Canberra was $465/week, while today it has increased to $690/week and now looks set to spike much higher on SQM&#39;s data series.&nbsp;</p>

<p>As such Canberra will take out the title as most expensive capital city in which to rent this year, eclipsing Sydney and Melbourne, although the jury is still out on the role of property tax.&nbsp;</p>

<p>Asking rents for units increased more modestly from $370/week for $490/week over the same time period, although one suspects that data series has partly been skewed higher by the relatively high number of new units constructed in the nation&#39;s capital.&nbsp;</p>


The national residential vacancy rate fell from 2.1 per cent to 1.9 per cent in April.

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Large rental price increases across property markets: Pete Wargent

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<p>The latest Real Estate Institute of Queensland vacancy data for the December 2020 quarter shows Brisbane’s inner city rental market is seeing a comeback. </p>

<p>Having rocketed to almost 5% in the June Quarter, rental vacancies in the CBD have eased to 3.3%. </p>

<p>“The market has yet to fully rebound,” Antonia Mercorella, CEO of the REIQ advised.</p>

<p>Rental vacancies around the city’s middle ring remain tight, including Hawthorne (1.4%), New Farm (1.9%), Paddington (2.1%) and St Lucia (1.7%). </p>

<p>Further out into Brisbane’s outer ring and vacancies are even tighter, including Camp Hill (1.3%), Cannon Hill (1.4%), Holland Park (1.2%) and Moorooka (1.3%). </p>

<p>“In the last six months we’ve witnessed some record lows across capital city suburbs; figures we’ve certainly not seen for well over a decade,” Ms. Mercorella noted.</p>

<p>“It’s a similar scenario as you travel around the wider regions of Brisbane including Ipswich, Logan, Morton Bay and Redlands which all have uncomfortably low stock levels around 1%.” </p>

<p>Across the State’s regional areas, Cairns (1.2%), Cassowary Coast (1.1%), Isaac (1.2%), Mareeba (1.5%) and the Whitsundays (1.4%) saw vacancies rise above 1%. </p>

<p>However, for the remaining regional Queensland, rental vacancies have plunged further to record an all-time median low of 0.575% including Bundaberg (0.4%), Fraser Coast (0.6%), Hervey Bay (0.9%), Mackay (0.7%), Toowoomba (0.7%) and Townsville (0.7%). </p>

<p>Rockhampton recorded the lowest rental vacancies for the December 2020 quarter at 0.2%. </p>

<p>“During the pandemic, the Palaszczuk Government introduced a range of measures keeping tenants in place for longer which is part of the reason we have incredibly low rental availability across Queensland,” says Ms. Mercorella. </p>

<p>“We have also seen a significant amount of interstate migration, with renters also moving to Queensland, so all of these factors have contributed to our current tight vacancy rates.”</p>

<p>The popular destination for interstate migration, the Sunshine Coast hasn’t shifted in months, firmly gripped at 0.3%. </p>

<p>Many areas such as Buddina (0.3%), Caloundra (0.3%), Maroochydore (0.5%), Noosa (0.4%) and Sunrise Beach (0.5%) have continued to tighten marginally over the last three months.</p>

<p>The Gold Coast isn’t far behind, with Surfers Paradise, which recorded more than 2,100 vacant rentals at the peak of the pandemic nine months ago, currently at 0.7% stock availability. </p>

<p>“In fact, its rental market has rebounded beyond pre-COVID levels to reach a record low never before recorded,” she said.</p>

<p>The record low vacancies reported across the entire Gold Coast include Arundel (0.6%), Labrador (0.7%), Oxenford (0.1%), Runaway Bay (0.5%) and Southport (0.7%) and in the south, Broadbeach (0.8%), Currumbin (0.3%), Miami (0.2%), Palm Beach (0.3%) and Varsity Lakes (0.6%). </p>
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Bundaberg, Fraser Coast, Hervey Bay, Mackay, Toowoomba and Townsville have seen their rental vacancies plunge to record an all-time median low


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Record low rental vacancies across regional and coastal Queensland

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<div>As usual vacancy rates were higher in the month of December at 2.5 per cent or 80,092 vacancies.</div>
<div> </div>
<div>Despite the record high level of building, vacancies were considerably lower than a year earlier, when there were 89,721 vacancies according to SQM Research figures.<br><br>The year-on-year decrease reflects a combination of strong population growth and a very high volume of higher-density apartments still under construction, there being a lag in the completion of this dwelling type. </div>
<div> </div>
<div>Hobart has a record low vacancy rate for any capital city of an extremely tight 0.3 per cent, while Canberra (1.3 per cent) and Adelaide (1.5 per cent) remain tight rental markets. </div>
<div> </div>
<div>Asking rents have increased strongly in Hobart and Canberra accordingly over 2017. </div>
<div> </div>
<div>Perth and Darwin also seem to have turned a corner, with vacancy rates well down from a year earlier, while Melbourne's 2.1 per cent vacancy rate was also well down from 2.4 per cent in December 2016.</div>
<div> </div>
<div>This downtrend wasn't the case everywhere however, with Sydney recording a multi-year high reading of 2.6 per cent in December, up from 2.3 per cent last year. </div>
<div> </div>
<div>The numbers can jag around a bit, but smoothing the figures on a 6mMA basis gives a sense of the relative condition of the rental market in each city and the prevailing trends. </div>
<br><div class="separator"><a href="https://3.bp.blogspot.com/-Piajs6T7H5I/Wl4_t1_nSNI/AAAAAAAAn8U/fmBZ8lYfqc4ko5vIMpvkfWOC5PMiqLASwCLcBGAs/s1600/SQM1.jpg" target="_blank"><img src="https://3.bp.blogspot.com/-Piajs6T7H5I/Wl4_t1_nSNI/AAAAAAAAn8U/fmBZ8lYfqc4ko5vIMpvkfWOC5PMiqLASwCLcBGAs/s640/SQM1.jpg" width="640" height="376" data-original-height="818" data-original-width="1385"></a></div>
<br><div>At the end of the 2017 financial year, New South Wales had a record 64,470 attached dwellings under construction, with the overdue flood of completions doubtless accounting for the jump in December. </div>
<div> </div>
<div>Population growth in Sydney nevertheless remains strong, so it will be interesting to see how the market fares in 2018.</div>
<div> </div>
<div>On that note, the latest building activity figures are due out today, and these will shed further light on completions and the pipeline remaining under construction. </div>
<div> </div>
<div class="separator"><a href="https://3.bp.blogspot.com/-UvrQILlqT8k/Wl5CUZV9A5I/AAAAAAAAn8g/urEYDDEt-ugkqXs6HFmF2TIgKJ5GRZfQQCLcBGAs/s1600/sydney-opera-house-354376_1920.jpg" target="_blank"><img src="https://3.bp.blogspot.com/-UvrQILlqT8k/Wl5CUZV9A5I/AAAAAAAAn8g/urEYDDEt-ugkqXs6HFmF2TIgKJ5GRZfQQCLcBGAs/s640/sydney-opera-house-354376_1920.jpg" width="640" height="426" data-original-height="1068" data-original-width="1600"></a></div>
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<div class="post-footer"> <span>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and </span><a href="https://petewargent.blogspot.com/" target="_blank">blogger</a><span>.</span>
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pwargent-M4siyDbqQY

Rental vacancies down in 2017; but not everywhere: Pete Wargent

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<div>Interesting figures from SQM Research showed rental vacancies in Melbourne rising to 27,070 in October 2020, due to the lockdown.</div>
<div> </div>
<div>That's a vacancy rate of 4.4 per cent, and well up from only 11,882 rental vacancies a year earlier.</div>
<div> </div>
<div>SQM Research reported that the vacancy rate was most acute in Melbourne's CBD, at 10.6 per cent.</div>
<div> </div>
<div>The 6mMA figures showed that rental vacancies in Sydney have begun to level off.</div>
<div> </div>
<div class="x__Entity x__EType_OWALinkPreview x__EId_OWALinkPreview x__EReadonly_0"><img src="https://1.bp.blogspot.com/-HkllQbH-vBk/X7OJT4rBTZI/AAAAAAAA5XY/m7gdK7ltSz4w5rlcQfWM7Izx4QwyDhUfQCNcBGAsYHQ/s1464/SQM1.jpg" data-imagetype="External"></div>
<p> </p>
<div> </div>
<div>Rental vacancies in Brisbane continued to ease lower, down to 6,912 from 7,950 a year earlier.</div>
<div> </div>
<div>More than 400,000 Australians have returned home this year, which might go some of the way to explaining low rental vacancy rates in Perth, Canberra, Hobart, Adelaide, and Darwin, all of which now have tight vacancy rates of under 1 per cent.</div>
<div> </div>
<div> </div>
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<p> </p>
<div> </div>
<div>Consumer confidence lifted again to a 9-month high.</div>
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Melbourne rental vacancies rise to 27,000 as lockdown lifts: Pete Wargent

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<p>The national residential rental vacancy rate remained stable at 2.1 per cent over the month of November, SQM Research revealed Tuesday.  </p>

<p>The month of November ended with the total number of vacancies Australia-wide now at 78,879, with the vacancy rate slightly below the same time last year at 2.2 per cent.</p>

<p>Capital city vacancy rates remained stable over the month, with the exception of Sydney and Brisbane, which recorded a 0.1 per cent and 0.2 per cent decrease, respectively.</p>

<p>Sydney saw a minor decrease from 3.6 per cent in October to 3.5 per cent in November.</p>

<p>Melbourne’s vacancy rate – the highest in the nation – remained at 4.4 per cent in November. This time last year, Melbourne’s vacancy rate was at a low 2.2 per cent.</p>

<p>The surplus of rental property is most acute in Melbourne and Sydney’s CBDs, with Melbourne’s vacancy rate standing at 9.1 per cent.</p>

<p>Sydney CBD vacancy rate peaked at 16.2 per cent in May 2020 but has declined to 9.5 per cent in November.</p>

<table border="1" cellpadding="1" cellspacing="1" style="width:500px;"><tbody>
<tr>
<td><strong>City</strong></td>
			<td><strong>NOV 2019 Vacancies</strong></td>
			<td><strong>NOV 2019 Vacancy Rate</strong></td>
			<td><strong>OCT 2020 Vacancies</strong></td>
			<td><strong>OCT 2020 Vacancy Rate</strong></td>
			<td><strong>NOV 2020 Vacancies</strong></td>
			<td><strong>NOV 2020 Vacancy Rate</strong></td>
		</tr>
<tr>
<td>Sydney</td>
			<td>24,258</td>
			<td>3.4%</td>
			<td>26,455</td>
			<td>3.6%</td>
			<td>26,161</td>
			<td>3.5%</td>
		</tr>
<tr>
<td>Melbourne</td>
			<td>12,963</td>
			<td>2.2%</td>
			<td>27,070</td>
			<td>4.4%</td>
			<td>26,946</td>
			<td>4.4%</td>
		</tr>
<tr>
<td>Brisbane</td>
			<td>8,629</td>
			<td>2.5%</td>
			<td>6,912</td>
			<td>2.0%</td>
			<td>6,455</td>
			<td>1.8%</td>
		</tr>
<tr>
<td>Perth</td>
			<td>5,200</td>
			<td>2.5%</td>
			<td>1,936</td>
			<td>0.9%</td>
			<td>1,835</td>
			<td>0.9%</td>
		</tr>
<tr>
<td>Adelaide</td>
			<td>1,896</td>
			<td>1.0%</td>
			<td>1,501</td>
			<td>0.8%</td>
			<td>1,543</td>
			<td>0.8%</td>
		</tr>
<tr>
<td>Canberra</td>
			<td>756</td>
			<td>1.1%</td>
			<td>608</td>
			<td>0.9%</td>
			<td>601</td>
			<td>0.9%</td>
		</tr>
<tr>
<td>Darwin</td>
			<td>981</td>
			<td>3.1%</td>
			<td>217</td>
			<td>0.7%</td>
			<td>233</td>
			<td>0.7%</td>
		</tr>
<tr>
<td>Hobart</td>
			<td>159</td>
			<td>0.5%</td>
			<td>204</td>
			<td>0.6%</td>
			<td>192</td>
			<td>0.6%</td>
		</tr>
<tr>
<td><strong>National</strong></td>
			<td><strong>75,947</strong></td>
			<td><strong>2.2%</strong></td>
			<td><strong>74,221</strong></td>
			<td><strong>2.1%</strong></td>
			<td><strong>72,879</strong></td>
			<td><strong>2.1%</strong></td>
		</tr>
</tbody></table>
<p><strong>Asking Rents</strong></p>

<p>Over the month, capital city average asking rents increased 0.4 per cent for houses but decreased 0.2 per cent for units for the week ending December 12, to record asking rents of $540 per week for houses and $408 per week for units.</p>

<p>Most capital cities recorded increases in both house and unit asking rents.</p>

<p>Darwin recorded the highest increase of 6.7 per cent over the month for houses and 4.3 per cent in unit asking rents, followed by Hobart which recorded a 6.4 per cent increase in house rents and 3.3 per cent increase in unit rents.</p>

<p>Melbourne, however, recorded declines in both house and unit asking rents over the month of 0.1 per cent and 1.4 per cent respectively.</p>

<p>Sydney and Canberra recorded rental increases in houses of 0.9 per cent and 3.5 per cent respectively, but a decline in unit rents of 0.6 per cent and 1.2 per cent.</p>

<p><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/sqm-research-december-15.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="448" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/sqm-research-december-15.jpg?itok=L5VVfE-V" width="580"></a></p>

<p>"Rents for units in our two largest cities are still falling, though I note there appears to be a commencement of a reversal in the abundance of listings in the CBD’s of these two cities. They are still very elevated. But we could be starting to see some of the population moving back to the CBD and inner city locations”, SQM’s Louis Christopher said.</p>
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The national residential rental vacancy rate remained stable at 2.1 per cent over the month of November, SQM Research revealed

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National rental vacancy rate remains stable: SQM Research

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<p>EXPERT OBSERVER</p>
<p>The national vacancy rate held steady for the third consecutive month, remaining at 2.1 per cent and below the April peak of 2.6 per cent.</p>
<p>A two-speed vacancy rate has emerged as Melbourne entered its first month of heightened stage four restrictions in early August. Elsewhere, other capitals have avoided secondary lockdowns despite minor outbreaks occurring.</p>
<p>Melbourne’s stricter stage four lockdown has disrupted the rental market, with estimated vacant rental listings surging by 20.6 per cent over the month, and a staggering 140.7 per cent higher compared to last year.</p>
<p>In all other capital cities, vacant rental listings continue to see a downward trend in vacant rentals since the April peak.</p>
<p>Vacancy rates across the capitals continued to decline for the fourth consecutive month, except Melbourne, Sydney and Adelaide.</p>
<p>Melbourne has seen a steady rise since April, overtaking Sydney for the first time in the Domain’s vacancy rate series to become Australia’s highest vacancy rate market. Also, vacancy rates in Adelaide and Sydney remained stable over the month but are lower than the April peak.</p>
<p>Sydney’s vacancy rate held steady at 3.5 per cent, now the second highest of all capital cities. This is 50 basis points higher than one year ago. There were an estimated 21,828 vacant rental listings at the end of August, a fall of 0.5 per cent from the previous month.</p>
<p>In Melbourne, vacancy rates surged in August, increasing 60 basis points to 3.8 per cent, the highest rate ever recorded in the Domain vacancy rate series and 220 basis points higher than last year.</p>
<p>This was due to a 20.6 per cent rise in estimated vacancies, with 21,509 rentals sitting vacant by the end of the month. The elevated vacancy rate will continue to put downward pressure on rents in the months to follow.</p>
<p>In Brisbane, the vacancy rate declined 10 basis points to 2.2 per cent. There were an estimated 6679 vacant rental listings at the end of August, a fall of 240 over the month. Year-on-year the vacancy rate remains steady.</p>
<p>Conditions have tightened for Hobart tenants, with the vacancy rate now returning to pre-pandemic levels of March, contracting 10 basis points to 0.6 per cent. This makes Hobart the tightest capital city rental market.</p>
<p>In a small rental market, this represents 28 fewer vacant rentals by the end of the month. Over the year, Hobart’s vacancy rate is still 20 basis points higher than than the extraordinarily tight 0.4 per cent.</p>
<p>In Perth, the vacancy rate has continued its long-term downward trend despite the COVID-19 pandemic shock in April, a sign Perth’s property market is recovering.</p>
<p>The vacancy rate continues to fall, contracting 30 basis points to 1 per cent, and is the lowest vacancy rate recorded in Perth since the inception of the Domain vacancy rate series. This is down from the peak of 5 per cent in June 2017 and down 170 basis points year on year.</p>
<p>The vacancy rate in Canberra continues to fall, declining 10 basis points to 1 per cent, to become the second tightest rental market across the capital cities. Over the year, Canberra is 10 basis points lower.</p>
<p>In Adelaide, the vacancy rate held steady at 0.9 per cent, 10 basis points higher than last year.</p>
<p>Darwin’s vacancy rate continues to see a sharp decline, falling 40 basis points to 1.3 per cent, 210 basis points lower than last year.</p>
<p><strong>NICOLA POWELL </strong><em>is a Senior Research Analyst at Domain</em></p>
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j.ballantyne1990-6AQqhLzZaK

Melbourne's rental vacancy rate surged 20% in August: Domain's Nicola Powell

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<p>The Perth rental market’s vacancy rate has dropped to 1.6 per cent, which is the lowest it has been since March 2008.</p>
<p>REIWA President Damian Collins said a vacancy rate around three per cent is generally considered to create a good balance between supply and demand.</p>
<p>“The vacancy rate has remained below three per cent for 21 consecutive months, which has ensured rents generally started to stabilise after the post mining boom downturn,” Mr Collins said.</p>
<p>“However, with it now sitting below two per cent, we are starting to see the impacts of limited stock, and it is only a matter of time before rents rise. In some areas, agents are reporting rents are already on the move up.</p>
<p>“We are also seeing vacancy rates decline in the regions, with some areas experiencing a vacancy rate lower than Perth, such as Albany and Kalgoorlie which are now at 0.9 per cent.”</p>
<p>In July, there were 3,553 properties for rent on reiwa.com, which is 50 per cent less than what was available in July 2019 and it is creating competition amongst prospective tenants.</p>
<p>“There are a number of factors that may have contributed to lowering the vacancy rate, such as the lack of new supply due to investors staying out of the market, expats returning back to WA, and investors selling their investment properties,” Mr Collins said.</p>
<p>According to reiwa.com data, there were 726,688 searches conducted for rental properties in WA during July demonstrating rental properties are in high demand, with Scarborough the top searched suburb (16,029 searches), followed by South Perth (12,341), Mandurah (11,901), Joondalup (11,792) and Subiaco (11,609).</p>
<p>With the review of the Residential Tenancies (COVID-19 Response) Act 2020 coming up, it’s vital that the government remove all restrictions and limitations for non COVID-19 affected tenants.</p>
<p>“Investors are concerned about returning to the market due to the limitations on their ability to put rents to market and evict tenants who do not pay their rent. While we’d prefer to see the legislation lapse in its entirety, if there is an extension, it must be for the very small number of tenants still affected,” Mr Collins said.</p>
<p>“If we don’t encourage investors back into the market, then the rental shortage will only get worse.”</p>
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Perth's rental vacancy rate drops to 12-year low: REIWA

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<p><span>The national residential rental vacancy rate marginally declined 0.1% in August 2019 down to 2.2% from July, according to the latest data released by SQM Research.</span></p>
<p><span>They found, the total number of vacancies Australia-wide is now at 75,757 vacant residential properties, a decrease of 589 over the month but up 5,310 dwellings over the past 12 months.</span></p>
<p>Sydney, Perth and Adelaide each recorded minor decreases of 0.1% in vacancy rates while Melbourne and Darwin’s vacancy rates remained steady over the month.</p>
<p>Brisbane, Canberra and Hobart on the other hand saw an increase of 0.1% with Hobart still remaining the lowest in the country at 0.6%.</p>
<p><img src="https://www.urban.com.au/images/2019/9/17/SQM%20Rental%20Vacancy%20Rates%20August%20.JPG" alt=""></p>
<p>Over the month, Capital City asking rents declined 0.4% for houses but remained steady for units for the week ending 12 September 2019 to record asking rents of $544 per week for houses and $438 per week for units.</p>
<p>Brisbane continues to be the only capital city to record increases in weekly rents over the month for both houses and units at 0.6% for houses and 0.9% for units.</p>
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National vacancy rates dips in August: SQM Research

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<p>The inner Brisbane market has reported a sharp rise in rental vacancies, a lift from 2.1 per cent to 4.0 per cent in the December quarter.</p>
<p>But while this may seem a big jump, it’s actually not unusual for this market in the December quarter, the REIQ suggest.</p>
<p>"The 0-5km ring empties of renters in the Christmas/early January period and vacancies rise," said the REIQ chief <span>Antonia Mercorella</span>.</p>
<p>There has been an almost-decade long pattern of higher vacancies in December followed by a fall in the March quarter as the market returns to business as usual.</p>
<p>There was also a fall in the June and September quarters last year too in the inner city.</p>
<p>Brisbane’s middle ring (5-20km) held rock steady at 2.0 per cent from September to the December quarter. This closes out a very stable year for this region. In December 2017 the middle ring was 2.1 per cent, before it bumped up to 2.8 per cent in the March quarter. The June and September quarters were 2.1 per cent and 2.0 per cent respectively. The market forces of supply and demand are well balanced in this section of the market.</p>
<p>Brisbane LGA eased by 0.5 per cent, moving from a tight 2.0 per cent closer to a healthy ranking of 2.5 per cent. For most of 2017 this market averaged around 3.0 per cent to 3.5 per cent. Throughout 2018 it tightened a little as the more affordable middle ring lured tenants away from the central suburbs. But as supply to the inner city apartment market slows, it’s possible we’ll start to see this market tighten again over the coming year.</p>
<p>The Greater Brisbane region tightened from 2.4 per cent to 2.3 per cent.</p>
<p>A combination of factors is triggering investor nervousness in the Queensland rental market as the REIQ is seeing a slowdown in investor activity.</p>
<p>"Local agents in pockets of the southeast corner are reporting falling sales volumes, attributable to the perfect storm of real estate headwinds of tightened lending criteria, the legislation review, and the pending federal election," said <span>Antonia Mercorella.</span></p>
<p>"As federal election campaigning begins to ramp up uncertainty around potential negative gearing adjustments and capital gains tax changes have caused many investors to hit pause on possible buying activity.</p>
<p>"The REIQ is hearing from agents that financing is causing contracts to fall over.</p>
<p>"We’re seeing tightened lending restrictions slowing both investors and first home buyers from getting into the market.</p>
<p>"The State Government’s ongoing review of the Residential Tenancies and Rooming Accommodation Act is adding to the unease, particularly given the types of changes introduced in Victoria following a similar review of its rental legislation.</p>
<p>"Investors are concerned about a loss of control over their asset and worry about unwieldy legislation that will reduce their rights while ramping up concessions to tenants," she said.</p>
<p>Outer Brisbane (Ipswich, Logan, Moreton Bay and Redland) tightened from 2.8 per cent to 2.0 per cent, moving from healthy to tight. This market is being dragged into tight territory by the Redlands, which fell from 4.8 per cent to 1.6 per cent.</p>
<p>Ipswich tightened from 2.4 per cent to 1.8 per cent. Local agents report some jitters from investors who are nervous about the ongoing State Government review of the Residential Tenancies and Rooming Accommodation Act. The population grew from 166,904 in 2011 to 193,733 – a gain of 26,829. This will add to the strain on rental accommodation.</p>
<p>Logan tightened from 3.5 per cent to 2. 4 per cent. This market has moved from healthy into tight and, similar to Ipswich, is partially feeling the impact of population growth. From 2011 to 2016, the population of Logan grew by more than 25,000, or the equivalent of more than 5,000 people a year. With many regions reporting muted investor activity this population growth will push vacancy rates lower.</p>
<p>Moreton Bay held steady at 2.0 per cent, the same as the September quarter. Home to North Lakes, one of the fastest growing SA2s in Queensland, according to ABS data, a stable vacancy rate of 2.0 per cent is noteworthy and indicates a region where supply and demand are well balanced. </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/2/25/REIQ2.jpg" alt=""></p>
<p>The Gold Coast's December quarter vacancy rate saw a jump in the vacancy rate from 1.7 per cent to 4.8 per cent.</p>
<p>Several projects have been completed and added to the rental pool.</p>
<p>The largest of these is JLL’s Smith Collective build-to-rent dwellings.</p>
<p>The precinct has around 1251 dwellings, with first tenants moving in last month.   </p>
<p>Other developments have come online in Varsity, Broadbeach, Miami, Burleigh and Robina.</p>
<p>Agents are indicating that the market is price sensitive and tenants have choice, conditions that are relatively new to this market.</p>
<p>The REIQ signalled the third stand-out result for the December quarter was the Redlands, which tightened from 4.8 per cent to 1.6 per cent.</p>
<p>"This result represents a return to business as usual for this region which historically reports around 2 per cent vacancies," </p>
<p>"The September result of 4.8 per cent was an outlier."</p>
<p class="x_paragraph-one">Local agents report that there has been noticeably less activity in the December/January period than usual.</p>
<p class="x_paragraph-one">Tenants are staying put, one property manager reported, summarising the general consensus on Redlands.</p>
<p>The Sunshine Coast SD (Sunshine Coast LGA and Noosa Shire combined) has tightened and is now firmly classified a tight rental market.</p>
<p>The vacancy rate has dropped from 2.4 per cent to 1.8 per cent. These tightened conditions will continue to exert upward pressure on prices and it is likely we will see some movement in rents if these conditions continue.</p>
<p> </p>
<p> </p>
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