Sunshine Coast records the lowest rental vacancy rate in Queensland

Queensland Rental Markets are showing signs of improvement according to the Real Estate Institute of Queensland’s (REIQ) Vacancy Rate report for the first quarter of 2018.

Regional Queensland Rental Markets in particular have delivered good results, following several years of lacklustre results.

Antonia Mercorella, CEO of REIQ, said the regional vacancy improvements in this quarter followed similar minor improvements in the final quarter of 2017, and that these small but steady improvements were the hallmarks of Queensland real estate.

“Some of our markets, such as the Gold and Sunshine Coasts, remain uncomfortably tight, and we would like to see more investors enter those markets; however, APRA’s tightened lending criteria is not encouraging investors to consider property,” she said.

Greater Brisbane’s vacancy rates eased by 0.1 per cent to 2.7 per cent, which remains a healthy market. 

Looking more closely at this region, Brisbane LGA also eased 0.1 per cent to 3.1 per cent, which indicates a healthy market for a second consecutive quarter.

The Sunshine Coast has a vacancy rate of 1% overall. Caloundra and Gympie having the tightest vacancy rate in Queensland with just 0.5% of properties vacant, and Noosa is also very tight at only 0.8%.

The REIQ classes rental markets into three categories: weak, healthy or tight. These rental markets are classified according to vacancy rates:
 
0-2.5% = Tight
2.5-3.5% = Healthy
3.5% - plus  = Weak


Image source: REIQ


“The Sunshine Coast is very challenging for renters who are looking for accommodation and we have said consistently for quite some time that this market would benefit from additional investor activity,” Mercorella said. “The upward pressure on rents, as a result of this tight vacancy rate, will serve to push this market towards unaffordable.”

“It’s no surprise that renters are flocking to this market – it’s such a stunning part of the world with employment opportunities – but additional supply into this market would be very beneficial,” Ms Mercorella said. 

To learn more about investing on the Sunshine Coast, give the team at First National Coastal a call today on 07 5443 3377 or 07 5444 0800.