According to recently released research Brisbane’s rental vacancy rate rose to 3.8 per cent in the December quarter as landlords were forced to reconsider rental prices.
The Real Estate Institute of Queensland Rental Survey for December 2014 has revealed that vacancy rates increased in half of Queensland’s major regions.
The survey noted that investors may be taking the opportunity with improved selling conditions to release investment properties into the market.
Real Estate Institute of Queensland CEO Antonia Mercorella said a number of properties were entering the market but were not necessarily going to investors but owner-occupiers.
“Many REIQ agents reported softer tenant demand in December, with many leases expiring as students finish up their studies and others also take up employment opportunities in new locations,” she said.
However not all of Queensland was in the same boat as Moreton Bay, Redland City and Gladstone recorded a drop in vacancy levels moving them below 1.5 per cent.
Tessa Advisory Managing Director Brendan Tutt told the Australian Financial Review that he had a 0 per cent vacancy rate across his 340 Brisbane apartments but said it was a result of landlords being realistic with rent.
“I would say if landlords dropped rents by about 3 per cent, it would make a big difference. If they made that adjustment they would get the tenant and that is better than leaving [a property] vacant and possibly losing even more money,” Mr Tutt said.
Market analyst Urbis estimates there currently at least 102 active projects in inner-city Brisbane totalling about 12,562 apartments at various stages of planning & development.