MARKET TIGHTENS: Renters staying for longer in Bundaberg
BUNDABERG'S rental market has entered into the lowest vacancy rate for the September quarter in five years.
The latest REIQ Residential Vacancy Report for September showed Bundaberg sitting at 2.2 per cent residential vacancy, meaning less houses are available for renters in the region.
The report found median rents, especially for houses had followed a rising price trend for the past 12 months.
In September 2014 the vacancy rates were at 2.9 per cent - and the next three years saw rates rise to 4.6 per cent in 2015, 4.5 per cent in 2016 and 4.0 per cent in September last year.
REIQ zone chair Le-Anne Allan said this dramatic drop had a lot to do with both buyers and renters staying in Bundaberg for longer.
"A drop like that is due to a lot of tenants staying in properties and not vacating and moving on," Ms Allan said.
"They're choosing to stay in those properties for longer...we've also seen less people transferring in and out of coastal areas.
"Some properties are then sold by investors, reducing the number of properties within the whole rental market - and when they sell the properties, it reduces stock."
With tenants living in properties for longer, Ms Allan said a residential vacancy rate drop spelt good news for investors in the market.
"Because there is less housing available, it's good for the landlord as it gives them the opportunity to look at rental returns and possibly introduce increases in rent," she said.
"From a landlord's perspective - the more stable a tenant is, and the longer they stay on - the rental yield could be increased if they choose to do so."
Ms Allan said investors were holding on to properties because the region was "seen as an affordable destination with a potential for high investment yields".
"Our region is heading back to a level of stability, which is the underlying factor for growth and yields."