Of the 50 regions tracked in the Real Estate Institute of Queensland's (REIQ) Residential Vacancy Rate Report for the June quarter, 27 recorded a rise in vacancies, against 13 that tightened and 10 that held steady.
REIQ CEO Antonia Mercorella (pictured) pointed to shifting tenant behaviour.
"We're hearing reports of more break leases, more tenants trading down to cheaper accommodation, and some higher-priced rentals taking longer to secure a tenant – suggesting that affordability is influencing behaviour," Mercorella said.
"We're hearing that many property owners are feeling the squeeze too, with higher mortgage repayments, insurance, maintenance and compliance costs stretching household budgets," Mercorella said.
Some are now scaling back non-essential maintenance and upgrades as a result, according to feedback from property managers.
Despite the broader improvement, 29 regions still reported vacancy rates at or below 1%, with only six sitting above 2.0%. The statewide vacancy rate edged up to just 1%, well short of REIQ's healthy benchmark of 2.6–3.5%.
The trend mirrors the national picture, where the vacancy rate has also ticked up but remains far from balanced, with SQM Research data showing the national vacancy rate rising to 1.3% in June even as rents remained 8.1% higher annually — leaving Queensland tighter than the national average.
Greater Brisbane and the southeast corner remained largely unchanged, while the strongest loosening was concentrated in regional and coastal areas. Fraser Coast (2.2%) and Hervey Bay (2.3%) each rose 0.7 percentage points, Maryborough lifted 0.6pp to 1.4%, and Gympie, Mareeba, Caloundra Coast, Gold Coast, and Burdekin each rose 0.4pp. Several of these regions, along with Mackay and Rockhampton, recorded their highest vacancy rates since the onset of the pandemic.
Brisbane's median weekly rent sits around $700, though Mercorella noted Queensland's rent cap means the full effect of recent federal tax reforms won't be felt for some time.
This is already playing out nationally, with Cotality reporting the national gross rental yield lifted to 3.7% in June, still below borrowing costs for many leveraged investors — a shift flowing from investors adjusting rents as negative gearing changes near.
Mercorella also welcomed the Productivity Commission's interim report on housing supply regulation, particularly its recommendations around increasing housing density and diversity with three-storey townhouses becoming commonplace, removing minimum lot sizes and floor space ratios, and streamlining approvals, alongside the state government's TradieStart apprenticeship incentive scheme.
She maintained that boosting supply across all housing tiers remains the only durable fix.
"Ultimately, there is only one sustainable solution to housing affordability and rental pressures in Queensland, and that's more housing supply," Mercorella said.
Get the hottest and freshest property and mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
