Bundaberg rental vacancies have plummeted, but the REIQ says there’s one thing the government could do to address it

Bundaberg has followed a state trend of continuously low rental vacancies during the first quarter of 2021, with the REIQ putting forward an idea it believes could provide relief.

CALL FOR ACTION: Real Estate Institute of Queensland CEO Antonia Mercorella. Image supplied by the REIQ.

Bundaberg has followed a state trend of continuously low rental vacancies during the first quarter of 2021, with the REIQ putting forward an idea it believes could relieve the entire state.

Data released by the REIQ shows 80 per cent of the state is suffering extremely low vacancy rates.

The report shows that in March 2010, Bundaberg's vacancy rate was 3.1 per cent.

In June 2016, that number even rocketed up to 6.3 per cent.

But, since September 2020, the vacancy rate has sat below 1 per cent.

The rate of 0.5 per cent recorded in Bundaberg for the month of March sits just higher than Rockhampton's 0.4 per cent rate, while the city of Gladstone recorded 1.2 per cent in March.

Last month, Hervey Bay and Maryborough hit 0.9 per cent and 0.2 per cent vacancy rates respectively.

Inner city Brisbane recorded the highest number of vacancies on the list of locations, but even that rate was listed at just 2.8 per cent.

REIQ CEO Antonia Mercorella said government incentives and southern migration had quite an impact on the current situation.

"Where we're seeing the most pronounced rental demand levels far outstrip available vacancies is across regional Queensland, with the tightest vacancies currently to be found in Maryborough (0.2 per cent) followed by the Southern Downs (0.3 per cent) and Bundaberg regions (0.5 per cent), while a rate of 0.4 per cent has been recorded across Gympie, Rockhampton and Sunshine Coast," she said.

"Meanwhile, the Gold Coast has tightened a further 0.3 per cent to reach a record low of 0.6 per cent in the last 15 years of data records."

Ms Mercorella said the State Government had not included support measures in the most recent Budget and called for the return of the first home buyers' grant for existing properties.

She said the cost of a new build had jumped by 220.3 per cent between 1995 and 2018, pricing many out of building their own home.

"Moving from renting to owning a house is one of the greatest leaps Australians will make in their lives. With current historic low interest rates meaning lower repayments, we're starting to see cases where mortgage repayments are in fact lower than rent levels," Ms Mercorella said.

"So, by allowing first home buyers to access property beyond new construction and extend their support to purchase existing housing (to the same current value of less than $750,000), it will expose them to more affordable price points and help more Queenslanders transition from renting to home ownership.

"This in turn will help reduce pressure on the rental market while stimulating economic activity through the introduction of increased numbers to the broader property market. And this will ultimately lead to increased real estate transactions which means increased taxation for the state."

Last month, Bundaberg's politicians weighed in on their approach to addressing the shortage of rental properties in Bundaberg.