Source: The Chronicle
Essential workers such hospital workers and teaching staff, even students, are struggling to find a rental as Queensland’s vacancy rates plummet to punishing new lows across parts of the state.
The REIQ’s Residential Vacancy Report for the June Quarter 2022 shows that vacancy rates have fallen again across 21 of the 50 Queensland housing markets, with two regions – Goondwindi and Southern Downs –practically putting up the “no vacancy sign” with just 0.1 per cent of stock on the market.
And Queensland’s peak real estate body lays the blame for the ongoing housing crisis squarely at the feet of the State Government.
REIQ CEO Antonia Mercorella said quarter after quarter of drastically low vacancy rates were taking a toll on Queensland.
“Queenslanders have been enduring these wafer-thin vacancy rates for some time now and these conditions are understandably having both social and economic ramifications,” Ms Mercorella said.
“Real estate agents in regional parts of Queensland have reported that incredibly tight vacancy rates are making it tough for hospital workers, teaching staff, and students to find a place to live in proximity to their essential work or study.
“These people bring skills and spending to the regions, all contributing to the economic prosperity and social fabric of the area, and it’s a truly concerning loss to these communities when they simply cannot house them.
“People are also slipping through the cracks in the growing queues for social housing, and there’s no doubt that the government’s poor planning and lack of forecasting for our future needs has played a fairly significant role in where we find ourselves today.
“What we need now is creative solutions to breathe the life back into our flatlining vacancy rates and a genuine long-term plan for housing our population now and into the future.”
The vacancy report has revealed that rental stock has dwindled further in Hervey Bay, down 0.2 per cent to0.6 per cent, while vacancies in Banana (0.5%), Charters Towers (0.4%), and Isaac (1%) all fell 0.2% over the quarter, while Gladstone (1%), Mackay (0.5%), Townsville (0.5%), Cassowary Coast (0.8%), Central Highlands (0.6%), Livingstone (0.4%), Mareeba (0.3%), and Mount Isa (1.1%), all experienced reductions of 0.1 per cent. Burdekin in North Queensland had the most notable drop, halving to 0.5 per cent.
Brisbane Local Government Area (LGA) vacancies dropped to a new low of just 0.8 per cent with fewer options for renters than ever before, dragged into even tighter territory by the inner-city suburbs which which had a significant fall of 0.5 per cent this quarter.
Ms Mercorella said the fact inner-city Brisbane’s rental market grew significantly tighter this quarter could be a sign of just how depleted supply in the capital city had become.
“Typically, inner-city apartment supply is more bountiful and keeps Brisbane’s vacancy rate quite buoyant,but what we’re seeing now, is that even this market is being filled to the brim,” she said.
Elsewhere, vacancy rates in Rockhampton (0.4%), Toowoomba (0.3%), Cook (0.4%), Lockyer Valley (0.5%),Maranoa (0.6%), Scenic Rim (0.5%), all plateaued with no movement over the June quarter.
Bucking the downward trends was the Bay Islands, up 0.4 per cent to 3.2 per cent, what is considered a healthy margin.
Some positive shifts were also observed in coastal holiday markets such as Noosa (1.1%), Caloundra Coast(0.9%), and Sunshine Coast Statistical Division (0.8%) – all easing by 0.3 per cent or more towards a slightly healthier rate.
The Tablelands rose fractionally to 0.2 per cent – back in the same boat as Maryborough which stayed put at0.2 per cent after two years of virtually no vacancies. The neighbouring regions of Gympie and South Burnett also both rose slightly to 0.3 per cent.
The report comes a week after it was revealed that Queensland tenants were being forced to “break lease”ahead of rent hikes, some equating to $100 or more a week.
A Brisbane real estate principal also revealed that his agency was turning away 2-3 landlords a month who were demanding rent hikes despite doing no maintenance. Many were interstate investors who bought sight unseen, he said.
It comes as desperate tenants are seeking help on social media, with many forced to live in tents, cars and caravan parks, or fork out a fortune for Airbnbs and hotel rooms.
A recent post by Tenants Queensland asked if renters had received a “significant rent increase in the past 12months”. One said there rent had increased five times in three years, while another said there rent had increased $120 compared to the previous tenant, and another recently received a rent renewal with an increase of $140 a week. “You are left with no option other than accept it as there is nowhere else to go,” the desperate post said.
Ms Mercorella said the tight rental market is creating stress and tenants and property managers were both feeling the strain. “Chances are that for every property, there are multitudes of applicants who would make perfect tenants – however, the sad reality is that only one application for each property can be approved, and people are missing out simply because it’s so competitive,” she said. “Often when the market is competitive, people are driven to look for rentals outside of traditional means,such as on social media, which can of course open up more options but comes with risk. “It’s important to stay vigilant to rental scams ensuring that a property is legitimate and that the property owner is who they purport to be before transferring any monies.
“Despicably, there are cyber criminals trying to take advantage of people who are desperate for a home, and a telltale sign can be a property advertised for far less than the average market rate of the area.”
