NO VACANCY: Rental record for M'boro could signal new era
COME next month, the plummeting vacancy rates that crowned Maryborough the tightest real estate market in Queensland, could cement a long-awaited confidence boost.
The Heritage City's vacancy rates hit 0.3 per cent during the June quarter according to the latest report from property experts.
The Real Estate Institute of Queensland recorded Maryborough's rental demand had soared from 1.6 per cent in September last year.
Median rents for three-bedroom houses, two-bedroom units and three-bedroom town houses have increased about 5.9 per cent over the year from June last year to this year.
REIQ's Damian Raxach said the figures were great news for catching the eyes of investors with attractive yields but did make things tough for would-be renters.
"We are seeing activity in the Maryborough market both commercially and residentially," he said.
"I think we need to be mindful of being over excited about the market for just one quarter. Across the years Maryborough has been a volatile market bouncing from 2 per cent to 0.3 per cent.
"One would hope it is the beginning of something positive but we do need to wait a couple more quarters before it consolidates."
Mr Raxach said the softening of Hervey Bay's typically tight market could be an indication affordability was pushing people to Maryborough from Hervey Bay.
"Are people going to pay $370 to $380 for rent in Hervey Bay or $300 in Maryborough? Some may reason it will be better to spend the $80 extra in my pocket on fuel for the commute," he said.
"Heightened competition in a tight market can drive up rent, although one quarter won't change much.
"We are consistently getting at least 15 people for rental inspections and the advice we give to our tenants is have everything ready to apply immediately."
Mr Raxach said the expansion of industry in the region such as Rheinmetall Nioa Munitions factory and Astro Aero could be the reason Hervey Bay's top rentals were reaching record rent payments.
"So there are people paying big money for rentals which you wouldn't have seen a couple of years ago," he said.
"These are indicators people now have the income to pay those kind of rents.
"There have been jobs created with high income with the investment of new industry in the region."
The Fraser Coast market has tightened for the third consecutive quarter after reporting a vacancy rate of 0.9 per cent.
Remaining one of the lowest vacancy rates in Queensland, the region has been pulled up slightly by Hervey Bay's 1.4 per cent.