QLD Property Update and Rental Vacancy Rates
Brisbane’s southern suburbs continue to prove popular with home owners, investors and tenants. This is due to a combination of factors including their relative affordability, close proximity to the Brisbane CBD and Gold Coast. The area also benefits from improved road and public transport networks, which are further enhancing the popularity of the region.
The Brisbane property market continues to perform strongly, with latest results for the June period showing increased sales activity and shorter days on market for both house and unit sales. Median values are also beginning to trend upwards across the capital city.
The Logan council area over the three months to June, saw average days on the market fall to 77 days and the average vendor discounting improve 5.8%. According to local agents, buyer and vendor confidence has markedly improved in recent months.
The Principle of Leo Tsimpikas Real Estate in West End says the level of confidence in the market has increased considerably. “There is more confidence in the market in the last 9 months than there was for the last 3-4 years.”
According to the Principal of Integrity Property Management, “the level of enquiry from interstate investors has increased over the past 6mths. I feel it’s somewhat due to the improvement in Sydney and Melbourne, Brisbane by comparison is more affordable for the return.”
In our local office at Hope Island we are seeing similar results. The lower end of the market is extremely strong and has just increased again in the past 4-6 weeks. We had quite a slow period over the past 3-4 mths due to winter and the fall out from the Federal Budget.
Vacancy rates across the state are quite mixed but in general they’re coming down which is a good sign of a tightening market. In the past 3 mths vacancy rates in regional areas such as Mackay have come down from 7.5% to 6.8%. This is still quite high and hence the rental market price drops in these regions. The good news is that this is the first drop in vacancy rates for about 12 mths which is a sign that the stock levels up there are slowly being used up.
SE QLD on the other hand is dropping as well but very tight. The Gold Coast was at 2.2% 3 mths ago and has now dropped down to a level of 1.7% which is considered extremely tight. I have a table with rates in all of QLD if you need to know any other locations.