Investors blamed for tight Queensland rental market
By
Adam Smith
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14/11/2011 1:00:00 AM
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Low investor participation is seeing vacancy rates in Queensland tighten.
The REIQ has reported vacancy rates in Queensland have fallen in the September quarter. The organisation said five local government areas in the state recorded a vacancy rate of less than 2% in September, up from just two at the end of June.
REIG managing director Dan Molloy said weak investor participation was behind the tightening vacancy rates.
"“The number of investors in Queensland continues to be below historical averages. What this means is that there is not the usual number of investment properties being added to the overall rental pool, which is putting a strain on supply," Molloy said.
Molloy expressed optimism that the Reserve Bank rate cut, along with soft property prices, could begin to woo investors back. However, Molloy indicated many renters are unwilling to move into the property market, further exacerbating the state's low vacancy rates.
"Many renters are also opting to stay put, perhaps due to the ongoing economic uncertainty, which is also have an impact on supply," Molloy said.
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