A flood of properties up for rent

DESPITE dramatic tightening across regional Queensland’s rental market in the last quarter, Townsville’s vacancy rate has gone the other way as flood-damaged properties return to the market.

The vacancy rate in the region has lifted 0.7 of a percentage point since March, although the market remains tight.

A report released yesterday by the Real Estate Institute of Queensland revealed Townsville’s vacancy rate now sits at 2.2 per cent, up from 1.5 per cent in the previous quarter.

REIQ regional director Damien Keyes said it was mainly due to stock returning to the market.

“The return of properties has definitely eased the vacancy rate,” he said.

“I think in the next few months we will see the market return to a more healthy rate of 2.5 or 3.5 per cent. Typically around November and December we see people relocating, which will put more stock on the market as well.”

In June last year the vacancy rate in Townsville was almost double, at 4 per cent.

“I think we will continue to see the vacancy rate soften and it might even get back to that 4 per cent,” Mr Keyes said.

“We will see more investors buying in Townsville and I think that will make the market a bit softer as well.

“At the back end of last year, before the floods, we were starting to scratch the surface of slightly tighter conditions – the flood just threw a bit of a spanner in.”

The floods had a significant impact on rental prices in Townsville, with prices for three-bedroom houses and two-bedroom units both increasing in the March quarter.

Mr Keyes said the softening of vacancy rates would be good for rental prices.

“It (the softening vacancy rate) is good for tenants and people looking to move back into properties,” he said. “It will also keep prices in check.”

Overall, Queensland’s rental market strengthened over the quarter, highlighting an increase in rental demand.

The Burdekin region had the weakest vacancy rate in the state, at 4.3 per cent. Maryborough was the tightest at 0.3 per cent.