Sunshine Coast among highest statewide in rental vacancy rises

First signs of a loosening rental market have emerged in the latest quarter, with the Sunshine Coast region among the highest increases in rental vacancies across the state.

Early signs of the rental market softening have started to emerge with a surge in vacancy rates noted across the Sunshine Coast region.

Real Estate Institute of Queensland’s statewide vacancy rates for the June quarter revealed the Sunshine Coast had a higher spike in rates compared to Greater Brisbane and other regions.

The data stated the Maroochy Coast rose to 1.9 per cent, the Caloundra Coast was listed at 1.3 per cent and the Sunshine Coast at 1.6 per cent.

The vacancy rate in the Noosa region shot up to 3.1 per cent, named a “healthy range” in an REIQ statement.

The Sunshine Coast region in total rose by 0.6 per cent, one of the largest jumps across the state.

“For these popular holiday markets, it is unlikely that the rapidly relaxing vacancy rate reflects reprieve for local renters, rather it may indicate that most homes remaining on this market are listing at a price point that is out of reach for many families,” the Institute statement reads.

The release stated Residential Tenancies Authority data for the June quarter 2023 showed Noosa’s median rental price for a 3-bedroom house was $700 per week.

“Notably, this remains unchanged compared to the previous year, indicating that we may have reached a turning point as its rental prices stabilise,” the release stated.

Comparably, Brisbane LGA rose to 1 per cent, Ipswich to 1.1 per cent, Moreton Bay to 0.9 per cent and Redcliffe to 0.8 per cent.

“The exception in Greater Brisbane was Redland’s Bay Islands where demand for ‘island living’ continues to weaken – rising to its highest-ever vacancy rate of 6.3 per cent,” the release stated.

REIQ CEO Antonia Mercorella said in the release the increase in vacancies showed the market is “crawling towards healthier rates across most of the state.”

“It was too early to call in the March quarter, which also saw a slight lift, but now with back-to-back, quarter on quarter improvement, we can see some promising green shoots,” she said.

Throughout the June quarter, rates have relaxed in 38 regions, held steady in three and tightened in nine, the release stated.

The statewide vacancy rate rose by 1 per cent for the first time since December, 2021, the release stated.

McGrath Buderim real estate agent and REIQ Sunshine Coast zone chair Matt Diesel said rates are not at normal yet but there has been an increase across the region.

He said several factors contributed to the rise including short-stay properties switching to permanent accommodation and people leaving the region due to affordability and rental price increases.

McGrath Buderim real estate agent and REIQ Sunshine Coast zone chair Matt Diesel.

Mr Diesel said there has also been a big trend towards share housing for affordable living options with traffic on share-house platforms recently increasing.

Mr Diesel said vacancies have returned to “some degree of normal” as a “short-term reprieve” but does not expect there to be a massive increase in availability within the next quarter

“We’re seeing some sort of light at the end of the tunnel, we’ve got a long way to go” he said.

‘We need to see more properties being built on the Sunshine Coast.

“We’re seeing less building approvals, we’re seeing less properties go through so that’s a little bit concerning longer term.”

He said the region needs to have more investors return to the market with a balance between assurity for tenants and certainty for investors.

With an increase in supply and investment properties, the market would regulate itself, Mr Diesel.