South-east Queensland sees strong demand for rental properties
Queensland rental property continues to offer strong returns for investors in certain parts of the state, with south-east Queensland emerging as one of the most profitable areas.
The majority of markets in this region posted a vacancy rate of 2.5 per cent or less – three per cent is usually considered to mark the equilibrium between supply and demand.
So what areas should you be looking at for a real estate investment? There are some parts of Queensland that have been identified by experts as standout performers and are likely to catch the attention of anyone hoping to enter the rental market.
Toowoomba rentals in high demand
The latest data from the Real Estate Institute of Queensland (REIQ) identifies Toowoomba as a property hot spot for anyone who wants to rent out property.
Here, the tightest rental market has been seen, with a vacancy rate of just 1.3 per cent.
People are increasingly attracted to the city's climate and picturesque landscapes, making it the perfect place to set up home whether they are starting a family or pursuing a career path.
Known as the Garden City, Toowoomba has really made a name for itself as one of Queensland's property forerunners.
Speaking to The Chronicle earlier this year, Andrew Wilson from Australian Property Monitors shed some light on why this region has become such a hub for Queensland rental property.
"Toowoomba is really starting to see the effect of the resource sector in the Surat Basin," he noted.
"Toowoomba is becoming a hub of activity for the resource projects that are gathering strength. And with that strengthening comes a demand for accommodation."
Brisbane's rental market continues to thrive
The state capital of Brisbane is another area where rental properties are in high demand – REIQ data shows its vacancy rate stood at 2.3 per cent at the end of September 2013.
In the inner-city region, the vacancy rate registered at 2.4 per cent, potentially suggesting that people are looking for properties slightly further outside the CBD when relocating to the region.
REIQ identified that more rental properties have entered the market, as investors recognise people's desire to live close to all the services, facilities and opportunities that the Queensland state capital has to offer.
Data published by RP Data and Rismark International also showed that Brisbane continues to offer good returns to investors, as they take advantage of steady price growth and a stable economy.
The groups revealed that the average dwelling price in the city stood at $420,000 in September 2013, marking a rise of 1.1 per cent compared to the same time last year.