Gladstone rental vacancy rates show improvement

REIQ data could indicate recovery in the state's weaker markets.

RECOVERY ON THE CARDS: Gladstone's rental vacancies eased 0.1% from March to June, with a vacancy rate of 6.5%. Picture: Mike Richards GLA190117GCBD

THE Real Estate Institute of Queensland's quarterly rental vacancy rate data for the June quarter has revealed a tightening through much of regional Queensland, including Gladstone, indicating a recovery is on the cards in the state's weaker markets.

Gladstone eased 0.1% from March to June, with a vacancy rate of 6.5%.

The REIQ said the latest data for Gladstone was good news as it confirmed that last quarter's dramatic tightening from 9.9% in December to 6.4% in March was a genuine improving trend, rather than a brief outlier.

Gladstone experienced its highest rates of rental vacancy between the December 2015 quarter through to June 2016 where the rates rose to 10%, 11.3% and 10.2%.

The region's lowest rates were 0.6% and 0.7% in the June and September quarters of 2011.

Ray White Gladstone director of property management John Fieldus, who has been involved Gladstone real estate since 1988, says there are good signs of recovery in the market.

"There's been a shift of people attracted to Gladstone because they can find something quite readily and rent rates are half or what you'd pay four or five hours south,” he said.

"Gladstone's greatest weakness is its strength, which is bang for your buck and very attractive rental rates.”

As far as the rental vacancy rate data was concerned, Mr Fieldus considered a vacancy rate of 3% to be ideal.

"I think the big issue is when you have a high vacancy rate you have a high percent of investors enduring hardship,” he said.

"Generally investors are attracted to low vacancy rates because it's much more reliable.”

Originally published as Gladstone rental vacancy rates show improvement