Townsville rental market remains tight
New data from REIQ shows the Townsville vacancy rate bounced back at the end of 2023 but remained more than half of pre-pandemic levels.
New data from REIQ shows the Townsville vacancy rate bounced back at the end of 2023 but remained more than half of pre-pandemic levels.
The latest Residential Vacancy Rate Report from the Real Estate Institute of Queensland showed Townsville finished 2023 with a vacancy rate of 1 per cent.
This was the same as December 2022 but up from the previous three quarters.
The REIQ data showed the Townsville vacancy rate was 0.7 per cent in March 2023, 0.9 per cent in June and 0.6 per cent in September.
Pre-pandemic, in December 2019, 2.1 per cent of Townsville rental properties were sitting empty while that figure was 3.8 per cent a year earlier.
The REIQ report found Queensland’s statewide vacancy rate dipped slightly over the December quarter to 0.9 per cent.
Of the 50 local government areas and sub regions covered in the report, 22 tightened, 13 remained unchanged, and 15 relaxed.
The majority of markets remained tight, which REIQ classifies as a vacancy rates up to 2.5 per cent, and more than half were at 1 per cent or below.
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REIQ CEO Antonia Mercorella said Queensland property managers witnessed sustained demand for private rentals in 2023 while the social housing waitlist climbed to 43,000 in the September 2023 quarter.
“What we’ve seen over the course of the year is a rental property pool that’s insufficient and under incredible strain,” Ms Mercorella said.
“It’s not necessarily that rentals are impossible to find everywhere in our state, it’s the imbalance between the sheer demand and shortage of supply of rentals at certain price points and locations that’s out of kilter.
“Many are finding it’s a lot less hassle to renew their existing lease than to risk re-entering the fast-moving market, especially if they are attached to their area.”
Ms Mercorella said the REIQ recognised these were particularly tough conditions for the most vulnerable in our community.
“It’s very concerning that families in need are being forced to join the queues in the private rental market because there’s no social housing available to them and no hope on the near horizon of getting to the top of the waitlist,” she said.
“In the year to September 2023, only 269 social houses were completed in Queensland, and we know the social housing waitlist continues to grow.”
Ms Mercorella said it was unlikely the Queensland rental market would see a turnaround in 2024.
“There are many predicting that the worst is yet to come, and while we remain hopeful, it’s hard to see meaningful reprieve any time soon, as cost of living pressures continue to climb for both renters and lessors,” she said.
The tightest rental markets in Queensland were Cook Shire and Goondiwindi both recording a 0 per cent vacancy rate.
The highest rate (5.7 per cent) was on the Redland’s Bay Islands, followed by Mount Isa (2.7 per cent).
Originally published as Townsville rental market remains tight