Hopes tight vacancy rates in Fraser Coast attracts investors
WITH Hervey Bay vacancy rates at an all-time low, it's great news for attracting investors to the region and a warning sign of increases to come for renters.
The Fraser Coast market continues to show signs of strengthening with a tightening of the vacancy rate from 1.4 per cent in the September quarter to 1.2 per cent in the December quarter.
Hervey Bay tightened to 1 per cent, making this the tightest rental market in the state and Maryborough dropped to 1.6 per cent, down point four of a percentage point from 2 per cent.
Real Estate Institute of Queensland Fraser Coast Chair Damian Raxach hoped the rate would attract investment into the region.
"It is also a very logical conclusion the vacancy rate will attract investors in numbers we have struggled to attract in the past," he said.
"One of the things we need to look at is why aren't they already here.
"In my opinion they have been kept away by the lack of capital growth in the Fraser Coast.
"As a region we need to sell this as a positive to encourage investors."
Elders Real Estate senior property manager Lisa Mudge said a rent increase will result from the lack of supply and increased demand.
"Some owners are happy to keep the properties at a lower rent to ensure they keep tenants in place, rather than chase a higher rent per week," Mrs Mudge said.
"A median house price for a four-bedroom, two-bathroom house with a double lock-garage is about $350 per week.
"We only have one property available which is a one-bedroom unit in Urangan."
The property manager of 20 years said the lack of rentals was unusual, putting it down to fewer investors in the area.
"The return on investment properties in the area is not as high as other areas, so investors are selling, and some owners are moving into their properties, forcing tenants to move.
"We have applications from tenants moving to the area, as well as locals looking to either upgrade or downsize.
"Some of the applicants have sold their homes and are looking to rent while they build or purchase another property."
"This lack of supply and increased demand will result in rent increases but not substantially."