Strong demand for Queensland rental properties
Investors who have been biding their time when it comes to purchasing Queensland rental properties should wait no longer, as the state is suffering from a lack of quality housing stock.
With people relocating to the area not only from the rest of Australia but also internationally, it is perhaps not surprising that pressure on rental supply is increasing.
Data from the Real Estate Institute of Queensland (REIQ) highlights just how much pressure the rental market is under at the moment.
The ones to watch
In south-east Queensland, for example, vacancy rates currently stand at around three per cent and are tightening even further.
A reading of three per cent is usually considered to be the equilibrium between supply and demand, illustrating that there should be plenty of opportunities for a property investment in the area.
In fact, Bundaberg, the Fraser Coast and Cairns have each recorded vacancy rates below three per cent – all of which are lower than the results recorded at the same time last year.
Brisbane's rental market is also under increasing pressure, as the vacancy rate stands at 2.1 per cent – a level it has remained at for some time.
Investor activity increases
Some savvy investors have already taken note of the situation in Queensland and have therefore started to flock to the state's property hot spots.
Analysis of figures from the Australian Bureau of Statistics shows that investor activity is on the rise, increasing by 14.9 per cent between May 2012 and the same month of this year.
From April to May alone, there was almost a 20 per cent increase in the number of dwellings financed, putting investor activity at the highest level since June 2009.
The types of property to look out for
Queensland benefits from a wide variety of different property types, some of which are already being snapped up by investors.
Statistics from the REIQ show that sales of units and townhouses have been particularly strong across the state, suggesting that they may have found favour with those in search of rental property.
Cairns, for example, has seen a 54.5 per cent rise in the number of units and townhouses, with many of those snapped up priced at less than $250,000.
In Brisbane, the median unit price held steady at $390,000 over the three months to March this year, with the likes of Nundah and Kelvin Grove proving especially popular.
Prices in these two locations alone have increased 9.6 per cent and 8.8 per cent respectively, showing that investors could not only gain returns on rental costs, but also on the overall value of their property.
Queensland has long been a standout performer in the Australian property market and it seems this will continue to be the case for some time to come.