Tenants are keen to get foot in door
Influx of workers to the city means fewer tenancy vacancies
THE residential rental market in Townsville has tightened with a new report describing the local market as “healthy”.
Townsville Rentals report shows the vacancy rate has dropped from 5.9 per cent in July last year to 2.9 per cent.
It says there will be a softening in the vacancy rate as tertiary students, and defence personnel leave, before tightening again in the New Year.
Townsville Rentals business development manager Tamara Beacroft said there had been a drastic fall in vacancies during the past 18 months as people moved to the city for work and companies hired staff, anticipating more activity in the economy.
“There has been quite a few companies moving staff up here,” Ms Beacroft said.
TOWNSVILLE’S residential rental property market has turned from oversupplied to balanced as people move into the city with many preferring to rent rather than buy.
According to a report commissioned by Townsville Rentals, the city’s residential “flow” vacancy rate stands at 2.9 per cent, down from 5.9 per cent in July last year.
Townsville Rentals business development manager Tamara Beacroft said there had been a drastic fall in vacancies over the past 18 months as people moved to the city for work and companies hired staff, anticipating more activity in the economy.
“There has been quite a few companies moving staff up here,” Ms Beacroft said. “Quite a few people who have been here on contract have had their contracts extended.”
Ms Beacroft said there also appeared to more retention of defence- related jobs, while regional solar farm projects had attracted a lot of tradespeople.
The Townsville Rentals report says the market is “healthy” or balanced.
It points to a softening in the vacancy rate as tertiary students, defence personnel, teachers and grey nomads move out, before tightening again in the New Year as new residents move in and major projects ramp up.
Smith and Elliott principal Sally Elliott said there had been a delayed impact from State Government appointments after last year’s election, particularly in the medical sector, driving the rental market.
Ms Elliott said potential tenants were now more motivated to meet the market than risk missing out by offering well below the asking price.
Also, many people moving here were hesitant about buying, preferring to rent for a year to get to know the market.
“We now have a shortage of quality four- bedroom, two bathrooms, homes for rent,” Ms Elliott said.
According to the Townsville Rentals report, about 500 rental properties have been absorbed in the past year. But while there is an expectation rents will rise, Ms Beacroft said it may take 12 months to see significant increases.
The Herron Todd White Townsville in Focus report lists the June quarter median house rent at $ 325 a week with units at $ 265 a week, a 2.3 per cent increase and 1.5 per cent respectively in the past year.