Rate hits lowest point in 12 months: Concern builds as rentals decline

Pressure is mounting for residents attempting to step into the rental market, as vacancy rates continue to drop. Read more here.

Pressure is mounting for residents attempting to step into the rental market, as vacancy rates continue to drop.

Pressure is mounting for residents attempting to step into the rental market, as vacancy rates continue to drop.

The Real Estate Institute of Queensland’s most recent Residential Vacancy Report revealed Toowoomba’s rental vacancy rate dropped to 0.5% in the September 2021 quarter.

In comparison, the same time last year recorded a 0.6% vacancy rate, before it rose slightly to 0.7% in the December quarter and remained stable, until it began to fall again in June.

And while the data fuels concern, House Estate Agents principal Emmy Theis said the region’s vacancy rate felt even lower for local agents and prospective tenants.

“In the past two weeks, we have pre-approved hundreds of tenant applications,” she said.

“As soon as someone approaches us for a rental, we’re getting them to complete an online application for pre-approval so we can get them a house as soon as one becomes available, and we’re aiming for a turnaround time of 24 hours.”

Ms Theis said she had seen many recent cases of homeowners looking to sell their properties only to then struggle finding a rental to move into.

“We’re seeing a lot of the local mum and dad investors who would like to make a profit on their mortgage, reinvest their money into other markets or stabilise their own financial situation,” she said.

“For the first time in five to eight years, there’s great equity in people’s houses, but as soon as they sell, it creates a warp in the market because of the low rental vacancies.”

She said she was interested to see how the market would be impacted once the state borders reopened and whether or not migration would ease, which could take pressure off the market.

And with areas like Westbrook, Kleinton, Cambooya and Cranley becoming hot spots for clients investing in new estates, she said it could present a glimmer of hope.

“The Darling Downs has become really attractive because it offers quality of life, affordability, good work opportunities and its history with minimal to no lockdowns,” Ms Theis said.

“Even though there is a bit of a land shortage, there is a lot of vacant land in great housing estates out of town and more investment properties means more rental opportunities,” she said.

Ms Theis said the best chance of finding a rental was to submit a pre-approval application and ensure references, proof of identity and all information was attached.

Toowoomba rental vacancy rates for past 12 months:

• September 2020: 0.6%

• December 2020: 0.7%

• March 2021: 0.7%

• June 2021: 0.6%

• September 2021: 0.5%