Developments could freeze as rentals reach historic lows

Whitsunday rental vacancies have dipped below 1 per cent, putting the future of big projects at risk.

More investment properties are needed to help ease the Whitsunday rental market. Picture: File

LARGE developments could come to a grinding halt if the region's rental market does not ease.

Workers are struggling to find a place to call home as vacancy rates drop to record lows.

Rental availability in the Whitsundays has reached historic lows with Ray White Whitsunday principal Mark Beale reporting a vacancy rate well below 1 per cent, the lowest he had seen in 20 years.

The Real Estate Institute of Queensland data reported similar numbers with a 1.1 per cent vacancy rate across the Whitsundays in September.

The pressure is also being felt in Mackay, which was previously the state's tightest market at 0.6 per cent vacancy and continued to record ultra-low rental levels for the quarter.

Low rental vacancy rates are also being recorded in Mackay. Picture: Zizi Averill

The low rental vacancies means some of the community's most vulnerable are at risk while larger projects and developments could be forced to pause as companies struggle to house workers.

Ray White Whitsunday property manager Sue Griffiths said the rental market had been especially tight in the past six weeks.

"After the cyclone we saw a lot of big companies involved in insurance work coming in to do the work," she said.

"They were looking for a lot of properties at the time, but if we do have any kind of development going on, we see builders and all sorts of tradespeople needing housing.

"At the moment we've got a very, very low vacancy rate and very low stock advertised.

"We're getting multiple applications on every property that we advertise."

Real Estate Institute of Queensland CEO Antonia Mercorella said property investors would be needed to boost the market. Picture: File

Ms Griffiths said the lack of available rentals could be because of the pandemic as people were moving out of the city and into properties with more space.

Building more houses and investment properties would reduce the pressure on the market according to Ms Griffiths who said this would be made easier by government for first-home buyers.

However, giving construction projects to local contractors and builders would be key in ensuring the market was not placed under further stress.

REIQ CEO Antonia Mercorella said the rental shortages stretched across Queensland.

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"As more people choose to make Queensland their home, it's imperative we act now to support and safeguard the rental housing needs of current and future generations," she said.

"Over 36 per cent of Queensland's population rent and 90 per cent of that housing is provided by private owners.

"Given the current and future rental needs of the community, it's critical we continue to attract property investors to improve supply and keep pace with demand and maintain rental affordability."

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