Keeping up with demand for Queensland rental property
Queensland has no doubt become a property hot spot over recent years – with workers moving to the area in search of jobs in the resources sector, the need for rental property has never been greater.
Even as the mining boom apparently starts to wind down, it seems that people are nevertheless keen to move to the area in search of Queensland rental property – but keeping up with demand is tough.
The state has seen increased pressure on its housing stock during recent times, a trend that is apparently showing little sign of slowing down any time soon.
Although investors are still finding their feet in the region, there is a growing need for quality rental stock, presenting some real opportunities for anyone hoping to cash in on Queensland's continuing popularity.
Demand outstrips supply
Latest data from the Real Estate Institute of Queensland (REIQ) shows that vacancy rates were more constricted in June 2013 than they were during the same period of last year.
Take south-east Queensland as an example – vacancy rates in the area are under three per cent and the group believes that they will only tighten further in months to come.
This is a picture that has emerged across various parts of the state, with the exception of Brisbane, where the vacancy rate has remained at 2.1 per cent.
The Fraser Coast, Cairns and Bundaberg have all had vacancy rates under three per cent, which is lower than they were during the same time last year.
Competition is on the rise
As demand for quality rental properties increases, the number of investors hoping to make the most of this growing interest is expected to rise considerably.
In some cases, this trend has already started to emerge, as REIQ analysis of figures from the Australian Bureau of Statistics indicates.
In May this year, property investor activity increased 14.9 per cent compared to the same period of 2012, with a total of 5,121 dwellings financed.
The number of investors also increased by almost 20 per cent when assessed in relation to the previous month, as the amount of dwellings financed was above the ten-year monthly average.
Big cities throughout the state continue to experience the greatest strain on rental supply – with redevelopment projects being undertaken in many areas, it is hardly surprising that people are keen to make the most of them.
Some areas see rise in vacancy rates
There are some parts of Queensland where investors have already made their mark, with the likes of Rockhampton and Townsville just two examples.
These are areas that received a massive population influx during the resources boom, seeking Queensland rental property that investors were all too willing to supply.
As the mining boom nears its natural end, vacancy rates are starting to increase again – but this is not to say there aren't some real investment opportunities to be found.