Rental market strengthens as population increases
THE Queensland rental market has strengthened again for the June quarter.
And the Sunshine Coast has remained at one of the tightest regions with vacancies holding steady at 2%.
Population increases has been the main factor, together with supply of new housing stock.
Queensland's annual population growth has been 1.7% or about 83,330 new residents for the year to March 2018. This has helped absorb about 6200 net new rental properties over the September quarter and more than 21,120 net new rental properties for the past year.
Supply has also played a pivotal role in shaping the current state of the rental market.
Tighter lending criteria and higher interest rates continue discouraging individual investors to enter the property market and limiting the increase in rental supply.
This could potentially change if more new rental supply is released directly by developers into the rental market.
REIQ CEO Antonia Mercorella said continued population growth required an increasing level of supply to ensure rental markets remained stable.
"Renting is slowly on the rise and we can see from the data that we need moderate levels of additional supply.''
Sunshine Coast vacancies held steady at 2% for the September quarter, with the sub-regions moving at different speeds but all performing reasonably well.
The rental markets of Noosa and Caloundra Coast were the tightest markets in the region with vacancies of 1.8%.
Median rents for three-bedroom houses, two-bedroom units and three-bedroom townhouses have generally trended upwards in the Sunshine Coast local government area and Noosa Shire for the past year.
The main exception was the rental market for three-bedroom townhouses in Noosa which has seen rent drops as demand has stabilised.