Prime location keeps Redlands rental market tight, prices high

LOCATION, LOCATION, LOCATION: The Redlands' proximity to both the water and the Brisbane CBD makes it a desirable spot to live, according to REIQ.
LOCATION, LOCATION, LOCATION: The Redlands' proximity to both the water and the Brisbane CBD makes it a desirable spot to live, according to REIQ.

OUTSIDE the Brisbane council area, the Redlands is the most expensive region in the Greater Brisbane area to buy a house, according to the Real Estate Institute of Queensland.

While rental vacancies have risen in Brisbane's inner suburbs, Redlands rates have remained tight for the eighth quarter in a row.

The June quarter saw vacancy rates sitting at 1.6 per cent, well outside REIQ's healthy range of 2.5 to 3.5 per cent.

Quarterly data showed it had not been in the healthy range for more than two years.

REIQ spokesperson Felicity Moore told the Redland City Bulletin in February that rental markets were consistently tight and property prices expensive in the Redlands due to its desirable location.

"It's within reasonable commuting distance to the (Brisbane) central business district, provides good access to the water, to North Stradbroke Island and to the Gold Coast," she said.

"With such tight vacancy rates, it's clear that it's very popular."

The annual median house price in the Redlands was $533,250, up $70,000 from five years ago. This was nearly $200,000 more than Ipswich's median price, and also surpassed prices in the Moreton Bay and Logan regions.

In the June quarter, the bay islands were also tight at 1.2 per cent, seeing a 2.2 per cent drop in rental vacancy since March.

A REIQ spokesperson said the changing market was reflected in median rent prices, which were up by about 1.9 per cent from the December quarter.

"Property managers have reported a persistent oversupply of unit stock on the market which is putting pressure on rent, but demand is increasing," the spokesperson said.

Despite a nationwide trough, the property market in Queensland remained affordable and continued to show signs of sustainable growth when compared to its southern counterparts.

"With the federal election done and dusted and the threat to negative gearing changes removed, consumer confidence has spiked," the spokesperson said.

Local vacancy rates were at their tightest at 0.8 per cent in 2014, after peaking at 4.5 per cent in September 2009.