Two-speed market across state

THE Queensland rental market, in similar fashion to the house and unit markets, is operating at two speeds.

Regional Queensland, north of the Sunshine Coast, tends to favour the tenant, with ample choice of stock and a good position from which to negotiate terms.

The south-east corner, broadly speaking, tends to be a tighter rental market where multiple applications are made on rental properties and low vacancy rates exist across most markets.

Inner Brisbane is the exception to the south-east corner trend, with vacancies lifting to a new high of 4.4%, largely as a result of strong levels of supply coming on to the market, primarily for medium-to-high-density dwellings.

Investors in Cairns units are achieving the highest gross rental yields in the state, thanks to high demand and a tight vacancy rate of 1.8%.

The Gold Coast has 1.7% of rental properties vacant, and this has been generally a tight rental market for about 3.5 years (since September 2013).

The Sunshine Coast is facing similarly tight conditions, with vacancies at 1.8% for the March quarter.

Toowoomba is healthy, with a vacancy rate of 2.9%. Ipswich is tight, just 2% of rental properties are vacant.

Further north, Mackay, Rockhampton, Gladstone, and Bundaberg are all weak markets and tenants have the bargaining power in these areas.

However, local agents are indicating that Mackay and Rockhampton seem to be improving, with some rental markets attracting more than one application before being let.