Gladstone investors hard to find with rental oversupply
LOCAL agents in Gladstone say investors are still thin on the ground and rental stock remains in oversupply, with tenant demand also down.
The comments are part of the latest Real Estate Institute of Queensland Residential Rental Survey, which shows tight conditions have returned to the state's rental markets.
Residential vacancy rates in Gladstone are weak and trending down, according to the survey.
The region went from 7.7 per cent in December 2013 to 6.4 per cent in March 2014.
Circumstances are similar in resource-heavy sister town Mackay.
REIQ chief Anton Kardash said the survey, carried out in March across all REIQ accredited agencies, found that the majority of the state recorded lower vacancy rates compared to three months ago.
"Queensland is seeing a return to a tighter rental market," he said.
"Stronger tenant demand and a decrease in the availability of stock are the common themes across the state."
In Brisbane, the overall vacancy rate for the metropolitan area was back down to 2.3 per cent, as seen at the end of September last year.
Excluding the spike recorded in December, the Brisbane vacancy rate has been around the 2 to 2.3 per cent mark for over 12 months now.
The Brisbane inner city rental market returned to a healthier vacancy rate following a spike in December.
This was reportedly the result of easing asking rents to ensure vacancies were refilled quickly and to compete with the new stock on the market.
Local agents were also reporting tenants deciding to move further out where they could achieve a larger property for the same weekly rent.
Toowoomba continues to record very low vacancy rates, with local agents expecting investor interest, most notably from interstate, to pick up in the next 12 months.
On the Sunshine Coast, the Maroochy and Noosa areas remain at all-time lows with vacancies below 1 per cent, while Caloundra saw its vacancy rate tighten further to 1.3 per cent.