This week I have included two tables about the south east Queensland rental market.
Table 1: Vacancy rate + Median weekly apartment rents, June 2020
| Local authority
area |
Vacancy rate | Two bed apartments | Four bed houses | Three bed townhouses |
| Brisbane | 2.4% ↓ | $415 ↓ | $520 ↓ | $420 → |
| Gold Coast | 3.2% ↑ | $430 ↓ | $520 ↑ | $450 → |
| Ipswich | 1.2% ↓ | $260 ↑ | $375 ↑ | $325 ↑ |
| Logan | 2.3% ↓ | $290 → | $400 → | $330 → |
| Moreton Bay | 1.2% ↓ | $295 ↑ | $430 ↑ | $350 ↑ |
| Noosa | 2.0% ↓ | $420 ↑ | $620 ↑ | $585 ↑ |
| Redland | 1.1% ↓ | $365 ↑ | $500 ↑ | $410 ↑ |
| Sunshine Coast | 1.2% ↓ | $380 ↑ | $540 ↑ | $440 ↑ |
| Matusik Ready Reckoner Reports, table 6. Arrows indicate movement over the last 12 months. | ||||
Table 2: Change in median weekly rents over the last ten years
| Local authority
area |
Two bed apartments | Four bed
houses |
Three bed townhouses |
| Brisbane | 15% | 16% | 11% |
| Gold Coast | 26% | 18% | 25% |
| Ipswich | 8% | 14% | 10% |
| Logan | 21% | 11% | 12% |
| Moreton Bay | 13% | 19% | 13% |
| Noosa | 31% | 28% | 38% |
| Redland | 18% | 14% | 19% |
| Sunshine Coast | 27% | 26% | 22% |
| Matusik Ready Reckoner Reports, table 6. Total change between June 2010 and June 2020. | |||
Our research has found that a vacancy rate under 2% suggests a significant shortfall of suitable rental accommodation. Typically, when the vacancy rate is under 2% weekly rents start to rise.
This is lower than the usually promoted 3% to 4%. This is because many tenants monitor vacancies proactively these days. Digital technology helps facilitate this. Gone are the days of a printed ‘for rent’ agency list being the main way renters found out about vacant accommodation. Many tenants have the ability to pounce on available space; hence the vacancy rate trigger point has dropped to under 2%.
The rental market is also a key driver behind the local property cycle.
For example, during the stagnation phase, the rental vacancy rate is steady. Yet a fall in rental stock availability is often the first trigger helping push a market into a recovery phase.
During the recovery phase, the rental vacancy rate starts to fall. Weekly rents may still be falling or stagnant, but typically start to rise once the vacancy rate shows consistent falls and/or falls below 2%.
When the local market is in the upswing phase, the rental vacancy rate is often tight and weekly rents show regular annual growth.
And more often than not, when the vacancy rate rises and remains high, weekly rents start to fall, helping downturn the local housing market.
To find out more about the local rental market and property clock positions get a Matusik Ready Reckoner Report – new, improved and just $55 per report or $330 if you buy all eight SEQld reports, saving you 25%.