Vacancies tighten in Queensland, heralding the strengthening of its rental markets and providing opportunities to landlords and tenants
It is getting cramped in the Sunshine State, especially in the regional markets. This follows a trend observed in the last quarter of 2017.
“It’s gratifying to see that all areas of the Brisbane rental market are operating in the healthy range, and this is starting to impact speculation about oversupply. The data shows a very resilient market capable of absorbing the perceived oversupply,” says Antonia Mercorella, CEO of the Real Estate Institute of Queensland (REIQ).
According to REIQ, most pockets of the state boast healthy rental markets, including Greater Brisbane, Ipswich, the Sunshine Coast and the Gold Coast.
“Some of our markets, such as the Gold and Sunshine Coasts, remain uncomfortably tight, and we would like to see more investors enter those markets. [Ipswich] is really a growth corridor for Queensland, and we’re seeing buyers and renters flocking to this part of the southeast corner,” Mercorella says.
With the end of the Commonwealth Games, the next few months will be crucial for the Gold Coast. The Athletes Village is expected to be converted into a mixed-use precinct containing over a thousand apartments. “Our hope is that these units will find investor buyers, and this could contribute to easing the tight rental conditions in this beautiful part of the world,” Mercorella says.
Positive outlook
Overall, the future looks bright for Queensland.
“After a decade of being in the property market doldrums, the broader outlook for Queensland property markets is one of the most positive of all Australian states right now,” says Simon Pressley, managing director of Propertyology.
This is attributed in part to the population growth brought about by interstate migration as many Sydneysiders cross over after being priced out of the market. Over 2017, Queensland’s job market has also improved, giving migrants even more incentive.
“Housing affordability and lifestyle attractions all the way up the east coast have always been there; however, Queensland has lacked the job growth for some years. But the 6.5% increase in total job volumes in the 2017 calendar year is the best that it’s produced in a long while,” Pressley reports.
Migrants aren’t just looking at the coasts and the capital; supply is being snapped up in Cairns, Hervey Bay and Mackay as well.
SUBURB TO WATCH
WHITFIELD:
small suburb in the Cairns region, Whitfield is divided between bushland and a developed residential area.
The southern part of the suburb houses the majority of homes and amenities, including Whitfield State School. Whitfield is about 5km from the Cairns CBD, a popular tourist destination. Whitfield residents can therefore enjoy the warm climate while having access to Australia’s world-famous Great Barrier Reef, beaches and many shops.
Units have become the choice property type, likely due to their affordable prices. These properties spend an average of just 17 days on the market and sell at a low discount of 4%, while delivering high rental returns of 6.5%.
Yield: The average rental yield for units comes in at 6.5%, while for houses it is 4.7%
Location: Whitfield is just a hop and a skip from the Cairns CBD
