Rental market surges
TOWNSVILLE’S rental vacancy rate is continuing to tighten with new figures showing it has reduced to 4.1 per cent.
A report commissioned by Townsville Rentals through DS Economics found that the rental market in Townsville was steadily improving.
Townsville Rentals business development manager Tamara Beacroft said vacancy rates were expected to continue a downwards trend.
“Our agency has experienced a tightening trend and we currently have a vacancy rate of around 3.5 per cent,” she said.
“Our rental properties are a mixture of the more established and modern- style properties right across Townsville and some properties are renting stronger than others subject to location and style of the property.
“Most are being leased by tenants at their advertised price, which is positive compared to the situation two years ago.”
Agents are reporting a shortage of high- quality rental properties with well- maintained stock in desirable locations being snapped up quickly.
Vacancy rates peaked at 7.1 per cent in September last year before beginning a steady decline.
They rose slightly at the start of the year to 4.5 per cent which was attributed to seasonal trends of more people relocating during December and January.
Vacancy rates would have to fall to below 3 per cent before the rental market was considered healthy.
According to Core Logic figures, rental yields remained strong with some suburbs fetching rental yields of above 7 per cent while, Townsville- wide, the gross rental yield in 2017 was 4.9 per cent for houses and 5.5 per cent for units.
The median asking rent in Townsville was $ 315 in 2017 for houses and $ 271 for units.
Ms Beacroft said it was expected demand for rental properties would increase in 2018 as a result of a forecast rise in employment.
She said despite the optimism in the market it was difficult to give investors a time frame for when they would see higher rental returns.
“We can see that there is movement in the market and we’re excited about the expected growth for Townsville, but this is still in the very early stages,” she said.
“We anticipate it will take a little longer to see stability in the market.”