Mackay vacancy rates remain ‘tight territory’
While consecutive lifts in Queensland’s quarterly residential vacancy rates are a promising sign that rental conditions are improving says REIQ, Mackay has remained in “tight territory”.
According to the REIQ Residential Vacancy Rate Report for the June 2023 Quarter, released earlier this month, the vacancy rate remains ‘tight’ (0 – 2.5 per cent) across the vast majority of Queensland.
The report, which covers 50 local government areas (LGAs) and sub-regions in Queensland, comes as the state-wide vacancy rate rose to 1.0 per cent for the first time since December 2021, REIQ says.
READ MORE >> HOUSING AFFORDABILITY DECLINES, INDEX REVEALS
According to the report, Mackay had a fairly minor fluctuation (0.8%), remaining “stubbornly in tight territory” while the vacancy rate relaxed in 38 regions, held steady in three and tightened in nine over the June quarter.
REIQ CEO Antonia Mercorella said the movement over the quarter showed that Queensland is crawling towards healthier rates across most of the state.
“We’re starting to see some early signs of the rental market starting to soften just ever so slightly, with vacancy rates showing small increases in the majority of region.
READ MORE >> BUDGET AIMS TO HELP RENTERS AND HOMEOWNERS
“It was too early to call in the March quarter, which also saw a slight lift, but now with back-to-back, quarter-on-quarter improvement, we can see some promising green shoots.
“There is still a long way to go for Queensland’s rental market to reach healthy rates, but these results are a step in the right direction with a little more movement and increasing opportunity and choice for renters wanting to get into the market.
“This is consistent with what real estate agents on the ground are telling us. They say there’s more rental housing stock freeing up, particularly in higher price point suburbs which have probably hit the peak of rent increases.
“Necessity is the mother of invention, and because people have been unable to find the type of rental property they are looking for, in the area they’re looking for, and something that works within their budget restraints, they are thinking outside of the box, adapting, and finding alternative solutions.
READ MORE >> CHANGES TO RENT INCREASES
“These alternative arrangements include moving back in with parents where possible, moving in with other tenants in a co-tenancy instead of sole tenancy, and looking for units or townhouses instead of a freestanding home, or casting their net wider by looking at nearby localities with greater supply.”
The REIQ classes rental markets into three categories, tight, healthy, or weak classified according to vacancy rates 0 – 2.5 per cent = tight, 2.6 – 3.5 per cent = healthy and 3.6 per cent – plus = weak.
To read more on the REIQ website, click here.
