Friday, November 11, 2011

Brisbane Rental Vacancy Rate Tightens

Rental vacancy rates across many areas of Queensland have tightened over recent months, according to the latest Real Estate Institute of Queensland (REIQ) data.

The REIQ’s September residential rental survey found the low number of investors in the property market contributed to the tightening of vacancy rates between June and September this year.

“The number of investors in Queensland continues to be below historical averages. What this means is that there is not the usual number of investment properties being added to the overall rental pool, which is putting a strain on supply,” REIQ managing director Dan Molloy said.

“The recent interest rate cut, as well as soft property prices, are likely to make investment property a more attractive proposition for investors so we will hopefully see more activity from this type of buyer in coming months. Many renters are also opting to stay put, perhaps due to the ongoing economic uncertainty, which is also have an impact on supply.”

The vacancy rate in Brisbane is 2.3 per cent. Brisbane City’s vacancy rate eased slightly, largely due to easing conditions in the 5km-plus zone, despite Inner Brisbane experiencing tighter vacancy rates since the end of June.

In terms of median rents from the Residential Tenancies Authority, these tighter conditions have only been reflected in weekly rents in the south-west and north-western suburbs, both up $20 and $25 over the September quarter for three bedroom houses. For the outer suburbs, new developments coupled with the return of renovated flood- affected properties coming back into the rental pool have contributed to the increase of supply.

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