Bundy rental market tightening
BUNDABERG'S rental market has tightened, new Real Estate Institute of Queensland data shows.
The vacancy figures, released yesterday, show the rental market has come in from 3.4 per cent in the March quarter to 2.2 per cent in the June quarter.
The region is among many across the state which have seen a reduction in the number of available rentals.
Bundaberg REIQ zone chair Le-Anne Allan said the tightening of the market was promising for Bundaberg.
Ms Allan estimated a stabilisation in population numbers after the floods was a contributing factor.
"When the market tightens it means there is lower vacancy rates. This is good because there is less for tenants to choose from and there is a higher occupancy rate. So lower vacancy rates are a good thing,” Ms Allan said.
She said the state of the Mackay and Maryborough markets was a good reflection for Bundaberg.
"Another good sign is that Mackay is doing well, and that is coming off the same impacts we've had here.”
The market which experienced the greatest tightening in the state was Maryborough.
"Maryborough is low too, with only 0.7 per cent. That is very low and exceptionally strong,” Ms Allan said.
"With such low vacancy rates we have seen a marginal increase in returns on investment. So the two going together really do certainly place the region in a very strong position for any investor who is looking at investing in a regional area.”
The Bundy rental market, which is currently considered tight, was at 1.7 per cent in December.
This time last year it was at 3.6 per cent.
Aside from the December quarter, which is generally the tightest quarter of a year, the 2.2 per cent is the lowest level since September 2013.
The REIQ report indicated a general tightening of the Queensland rental market from March to June with Brisbane, Toowoomba, Maryborough and South Burnett all performing strongly.