DEMAND PUSHING RENTS UP
TOWNSVILLE’S vacancy rate is continuing to tighten as rent prices start to rise near the under- construction North Queensland Stadium.
A report by DS Economics and commissioned by Townsville Rentals shows that the June rental vacancy rate has dropped to 3.9 per cent from 4.1 per cent in April.
The report stated that despite the downward trend, vacancy rates would have to fall below 3 per cent before there were Townsville- wide rent price increases, but rents had already risen near the stadium.
“To achieve a healthy market over the coming 12 months, the Townsville residential market needs a net absorption of an additional approximate 200 properties,” the report stated.
“There is little evidence of rent increases, except for three- bedroom units in the ‘ Stadium Zone’.
“Between March 2017 and March 2018, three- bedroom units in postcode 4810 experienced an 8.75 per cent increase in weekly rents.”
Vacancy rates peaked at 7.1 per cent in September 2016 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.
Townsville Rentals business development manager Tamara Beacroft said their vacancy rate was the lowest it had been in two years.
“Over the last 12 months, we’ve seen an additional 620 properties become tenanted across the city to get to this lower vacancy rate,” she said.
“We’ve certainly seen these results reflected at Townsville Rentals, where the vacancy rate of our properties remains just above 4 per cent. We continue to advise … investors that there is a little way to go before they can expect higher rental returns.”
Regional economist Colin Dwyer said Townsville’s residential rental market had a positive trend, but there was still a long way to go before the city’s rental market could be categorised as strong. “Townsville has experienced more positive economic conditions in the past 12 months than in the past six years,” he said.
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