P is for Property
It’s a tight market
What does that even mean? In a Property Manager’s world a vacancy rate below 2.5% (percentage of empty rental properties) is considered tight.
For a prospective tenant looking for a rental property it is difficult because fewer rental properties become available. Renters are staying in the properties longer and fewer investors are buying.
In Queensland we are experiencing record low vacancy rates, in fact the lowest in over a decade. Across the Tablelands the vacancy rate currently sits at 0.4%.
Why is the rental market tight?
Fewer houses available for rent due to the current buyer demographic in the market being mostly owner-occupiers and first home buyers not investors.
More people arriving in Queensland. According to the Australian Bureau of Statistics, Queensland’s attraction rate continues with 9,800 interstate migrants now calling Queensland home, adding additional pressure to the rental market.
Regional areas are proving popular. Nearly two thirds of local and regional government areas in Queensland are experiencing their lowest vacancy rates in a decade.
Good news for Sellers?
A tight property market is good news for sellers. Low supply and high demand for properties puts sellers at an advantage. More buyers in the market means:
- Multiple buyers looking at the same property
- Properties sell faster
- Less negotiation on asking price
What to do next?
Think about the 5 Ps – Proper Planning Prevents Poor Performance. Current market conditions are ideal for anyone thinking about selling. Proper planning in place will help your property sell quickly and we can help you set and achieve your property goals. If you buying or selling, call your local property experts today for more info – 4092 2232
*Sources: Australian Bureau of Statistics, REIQ
