From holiday hot spots and outback towns to family-friendly suburbs, regional Queensland is in the grips of a rental vacancy crisis, with some suburbs seeing an almost complete collapse of supply.

Abell Point Marina, Airlie Beach: Regional Queensland has seen the biggest rise in migration since 2005 which is having a huge impact on property.

New data from REA Group shows of the top 10 towns and suburbs with the biggest falls in rental listings, the tourist mecca of Airlie Beach tops the list.

Signs like this have become as rare as hens teeth.

A magnet for celebrity holiday-makers and backpackers, the Whitsundays gem has seen the sharpest drop in available rental listings, with showing a fall of 92 per cent, from 86 listings in May last year, to just seven listings in May this year.

Just one rental was available last week – a three bedroom unit for $850 a week.

Rental vacancies in the Whitsunday region sit at 1.5 per cent, according to the latest Rental Vacancies Report from the Real Estate Institute of Queensland (REIQ).

There may not be any international tourists, but domestic tourism and an influx of Covid escapees to Airlie Beach and its surrounds has seen rental vacancy rates plunge as stock is either snapped up by owner occupiers or returns to the holiday letting pool. Image: Tourism Whitsundays

With a drop in listings of 88 per cent, available rentals in Cannonvale, just a short drive from Airlie Beach, have also fallen off a cliff.

Just eight rentals were listed on realestate.com.au last week.

Ray White Whitsundays principal Mark Beale said a lot of holiday lets entered the permanent rental pool when borders closed, but many had since returned to short-term accommodation.

He said they were also losing 10 to 12 rental properties a month from their rental roll as tenants and existing buyers bought up traditional rental stock.

“We have a lot of people moving here, not just from Sydney and Melbourne but also resource sector workers,” he said.

“We are also losing people from town, nurses, park rangers, tradies, we have essential workers leaving town because they just can’t get anything and are commuting back in.

“Everyone is also looking for staff … Hamilton Island needs 200 but the lack of properties is making it harder.”

Mr Beale said there needed to be more land and incentives made available so that new stock could be built in the region.

“If I had a 100 properties right now I would have no problem filling them,” he said.

Other tourism towns have also seen sharp falls in rental listings, including Palm Cove, down 80 per cent.

Located in the Cairns region, which has a vacancy rate of just 1.1 per cent, Palm Cove has been a popular property hot spot for southern buyers.

Just four rentals were available in the tropical getaway last week.

One of only four available rentals in Palm Cove, this stunning house is listed for $1500 a week

First National Cairns Central and Cairns Beaches principal David Forrest said the rental pool in general had been diminishing for several years, mostly due to properties being bought by owner occupiers or being turned into holiday homes.

“Housing approvals are improving but insurance problems and governments attacking things like negative gearing and tenancy laws, all that adds up to create a reluctance to buy for some investors.

“However, with rents and yields improving, the investors will return.”

The Palm Cove house has a stunning view from the pool

But it is not just holiday havens that are being affected, with outback towns and family friendly suburbs in Townsville also feeling the pinch.

In Townsville, listings have tanked 71 per cent in Annandale and 68 per cent in Aitkenvale, but the rental market is tight right across the capital of the North.

Just five rentals are currently available in Annandale, and nine are listed in Aitkenvale.

The rental market in Townsville, like most of Queensland, is tight. Picture: Evan Morgan

REIQ Townsville zone chair Ben Kingsberry said there was just not enough stock to meet the demand from buyers and renters.

“Functionally, I think we (Townsville) are at zero per cent vacancy,” he said.

“And it is like that across a lot of Queensland. There has been interstate migration to regional towns, so you have the stock you have but more people wanting it.”

Listed for $350 a week, this house is just one of nine properties available at Aitkenvale

He said that it was unlikely that the pressure would ease anytime soon, warning that the problem could get worse once international borders reopened.

“There just hasn’t been the financial incentive for developers to build large-scale developments in recent years, and this won’t be a popular opinion, but for that to happen, we need values and rents to rise,” Mr Kingsberry said.

“And while price rises put the pressure on, every time someone new moves to the regions because they can work remotely, that brings a new job to the region which is good for the local economy.”

Elsewhere, the rental vacancy crisis is also acute in places like Longreach, Kooralbyn, Miles, Wandoan and Stanthorpe.

In those towns, listings have plunged by at least 68 per cent.

In Longreach there is currently just two available rentals.

Ray White Rural Longreach-Barcaldine principal Bill Seeney said there was no major factor causing the shortage, but pointed to the fact that many renters had purchased the property they lived in.

“Traditionally, this is our peak tourism time and it is also when we get the seasonal workers through,” he said.

“We still get a decent turnover but as soon they come on, they are gone. We just have a severe shortage of rentals.”

Mr Seeney said a house could still be bought for around $200,000, but could be rented for around $300 a week, making local property attractive for investors.

Even finding a rental in the outback has become tough. Picture: Tourism and Events Queensland

REA Group economist Anne Flaherty said investor inquiry in regional Queensland was increasing, with buyers being driven by low debt costs and expected capital growth.

“What we do know is that there has been strong migration into Queensland from interstate over the past 12 months, and that is causing strong demand to buy and to rent,” she said.

“If we just look at the ‘Rest of Queensland’ ABS data (everywhere but Brisbane), it (regional Queensland) has seen the biggest rise in migration since 2005.

“Some have been priced out of their local market but many others are making lifestyle changes.”
Ms Flaherty said many of the tightest rental markets had experienced a tough few years, and then witnessed a surge in people moving to those towns when Covid-19 hit, with many drawn in by lifestyle and affordability.

As a result, demand outstripped supply, and the reopening of borders could put even greater pressure on housing markets, she said.

“The same trends that have driven Australians into regional areas, like lifestyle, affordability and remote working, will also apply to any overseas migrants,” Ms Flaherty said.

In a recent report, CoreLogic revealed rental price growth in regional Australia was outpacing that of the capital cities by almost three times – up 9.6 per cent in regiona Australia compared to 3.3 per cent in the capitals.

Top 10 suburbs with biggest percentage drop in rental listings

Data compares May 2020 and May 2021

Suburb/Council/Percentage decrease

Airlie Beach (Whitsunday) -92%

Cannonvale (Whitsunday) -88%

Longreach (Longreach) -83%

Palm Cove (Cairns) -80%

Kooralbyn (Scenic Rim) -78%

Annandale (Townsville) -71%

Miles (Western Downs) -71%

Wandoan (Western Downs) -70%

Stanthorpe (Southern Downs) -69%

Aitkenvale (Townsville) -68%

(Source: REA Group)

 

By Samantha Healy