Residential vacancy rates up in Noosa
The REIQ has recently released data for the June Quarter and the residential vacancy rate in Noosa has increased to 2.4%. This is the third quarter in a row that the vacancy rate has increased, with the December quarter being 0.7% and the March quarter being 1.4%. At 2.4% the vacancy rate is also the highest it has been since the September quarter in 2012.
As an investor should I be concerned with this recent trend? The short answer is no.
The REIQ has been keeping quarterly records on residential vacancy rates in Noosa since September 2010 and the average vacancy rate since then has been 2.4%. Our current vacancy rate sits right on that average and is well short of the 4-5% that we were seeing in 2010 and 2011.
It is also worth noting that the vacancy rate in Noosa traditionally spikes in the June quarter at the beginning of winter and then begins to subside as the weather becomes warmer. If history proves correct we can expect a drop in vacancy during the September quarter.
Spare a thought for our Northern regional neighbours where the vacancy rate is a different story, with Rockhampton at 6.5%, Mackay at 7.7% and Gladstone at a whopping 10.2%. These towns rely heavily on the resources sector and with the downturn in mining and an oversupply of housing due to heavy development, they have struggled to recover.
We are very fortunate in Noosa from an investors perspective that we have limited available land and a strict Noosa Plan that controls development and keeps our rental property market in under-supply. We are located in one of Australia’s most desirable locations and our proximity to Brisbane are just some of the reasons why our rental market will continue performing well and our residential vacancy rate will remain low.