Lower Rental Rates in Brisbane Keeps Market Competitive

Rental rates for real estate in Brisbane have relaxed only slightly over the past quarter according to the Real Estate Institute of Queensland (REIQ) Rental Vacancy Rate survey for the first quarter of 2013.

The vacancy rates rose from two per cent to 2.1 per cent - while a rental vacancy rate of three per cent is considered to be a 'balanced' rental market rate.

REIQ chief executive officer Anton Kardash said that houses for rent in Brisbane's market remain competitive - with between two and five applications per rental property.

One of the reasons Mr Kardash said is responsible for the rental market being more demand than supply is that first home buyers are staying on the sidelines of the property market since the removal of the $7,000 First Home Buyers Grant for established homes last year - replaced with a $15,000 grant for off-the-plan or newly constructed property.

Rental rates throughout the rest of Queensland have been a mixed bag, with many regional towns retaining a vacancy rate of 2.5 per cent or less.

"Mackay and Gladstone both recorded significant increases in vacancy rates as at the end of March due to less demand for rental properties from mining companies, and an element of increases in the supply of rental stock," said Mr Kardash.

"On the other hand, Toowoomba retained its mantle as one of the tightest rental markets in the State, and Bundaberg also recorded constrained rental conditions due to the floods in their region earlier this year."

The REIQ vacancy rate for Bundaberg was 0.8 per cent, following a 2.4 per cent rate at the end of December.