The Real Estate Institute of Queensland has reported a drastic rise in the middle-ring vacancy rate, while the inner-ring remained somewhat consistent.
The middle-ring (5-20km radius from the Brisbane CBD) vacancy rate has increased from 2.3% to 4.5%, while the inner-ring (0-5km radius) has only risen from 3.4% to 3.7%. The middle-ring figures come as a bit of a shock, due to a previous articles by the REIQ labelling the middle-ring as ‘healthy’.
REIQ CEO Antonia Mercorella said multiple factors were driving many out of the middle-ring rental market.
“Inner-city property managers and landlords are particularly sensitive to the oversupply question at the moment and rents have become extremely competitive, luring tenants from the middle ring into the inner ring,” she said.
“Also, a significant level of development has come online in the middle ring and some agents have reported that without being able [to] sell, many of those properties have been put into the rental pool.”
Ms Mercorella also said low interest rates and a $5000 increase to the first-home buyer grant drove people to own in the middle-ring, rather than rent.