Redlands, Logan rental vacancies less than three per cent as inner Brisbane suburbs face mass exodus

REDLANDS and Logan rental properties are in hot demand, with data revealing vacancies in both cities are less than those in the highly sought after inner-Brisbane suburbs.

SNAPPED-UP: Rental properties in Redlands and Logan are in hot demand, with vacancy rates lower than inner Brisbane.

SNAPPED-UP: Rental properties in Redlands and Logan are in hot demand, with vacancy rates lower than inner Brisbane.

Just 1.3 per cent of rental properties in the Redlands and 2.2 per cent in Logan are without tenants.

That is significantly lower than Brisbane, where the average vacancy rate for properties within a five kilometre radius of the city centre sits at 3.9 per cent.

Markets with vacancies greater than 3.5 per cent are weak, according to the Real Estate Institute of Queensland.

It spells bad news for suburbs like Bowen Hills, Fortitude Valley, Herston and Newstead where the rate sits at 7.2 per cent.

The market is weaker in places like South Brisbane, Highgate Hill and West End where vacancies have climbed to 9.2 per cent.

Real Estate Institute of Queensland chief executive Antonia Mercorella said the rental market was facing the tightest conditions since the Global Financial Crisis.

"The rental sector plays a critical role in Queensland's housing system and the role and size of our investor market has never been so important," Ms Mercorella said.

"Any further tightening in rental availability levels will only place additional undue pressures on our housing sector which is why more needs to be done to better support both increased and ongoing property investor activity in the Queensland market and the contributions they make to the state economy."

Regional areas like Maryborough, Mount Isa, Gympie and Rockhampton had vacancy rates of less than one per cent and were outperforming major metropolitan areas.

But Ms Mercorella said the coronavirus pandemic had hit the Brisbane CBD market harder than other areas due to a reduction in international tertiary students and permanent and part time migrants.

"It's therefore likely we'll see rents drop in the inner Brisbane areas which in turn will result in tenants eventually returning to the city," she said.

"Much of it will also depend on the commercial and retail sector's ability to rebound.

"It's very much a watch this space situation unlike anything we've ever experienced."

Ms Mercorella said rental properties no longer served as transitional housing for people moving into home ownership.

Renting was becoming an attractive long-term option under the current circumstances.

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