Page 17 - Tropic Magazine Issue 34

TROPIC • REAL ESTATE

Rising rents

RENTAL VACANCY
Cairns’ rental vacancy rates have
improved ever so slightly, but
the landscape’s likely to remain
tight throughout 2022.
Words: Annabel Bowles

We’ve all heard it a million times
recently – now’s the time to buy (if
you can). That adage is likely to remain
true throughout this year, at the very
least, if Cairns’ woeful rental vacancy
rates are anything to go by.
From June to September last year, the
rental vacancy rate hovered around a
record low 0.6 per cent in our tropical city.
At the time, the Real Estate Institute of 3-bed, 2-bath home on Queenly Close, Edge Hill, listed by LJ Hooker for $890pw.
Queensland (REIQ) dubbed the situation
a ‘tenancy crisis’, with almost three- REIQ Zone Chairman for Cairns and the “Last year there were a lot of hurdles for
quarters of the state’s rental markets sub Far North, Tom Quaid, said the slight people to physically get here.
one per cent vacancy. increase is likely to reflect a natural jump “Many people are now working from
When Tropic went to print, the latest in movement at the turn of the new year, the comfort of home, they’re sick of the
Cairns data indicated the rate had rather than any sustained improvement big cities and they’re seeking a lifestyle
bumped up to a meagre 0.8 per cent. for lessors. change. If they’re selling out of the majors
“There’s always a fair bit of changeover like Sydney, Brisbane and Melbourne
Apr at the start of a new year, with people they’ve probably done very, very well too,
2020 starting new jobs and schools and lining and have the money to
2.8% up a move to coincide with that,” he said. rent in Cairns for six or twelve months
“As a result there’s a little bit more before buying. This is going to add extra
availability in this period, but it’s a very stress on our supply.”
minor change. Anything sub one per cent For lessors in a position to possibly buy,
is a very tight supply.” 2022 may be the time to jump with
Mr Quaid actually thinks this year will see interest rates predicted to remain low for
an ever tighter situation for lessors. the next ten months, at least.
“With the borders now open I would “With interest rates as low as they are,
expect to see a continuation of this your mortgage principal plus interest
Mar
2020 migration moving north,” he said. payments may be cheaper than the cost
2.1% Aug of rent,” Mr Quaid said.
“You’ve also got control over where
2020 you live, and the opportunity to take
1.4%
advantage of a rising market.”

Dec
Aug 2021 The solution?
2021 0.8%
0.6% More rental stock. Mr Quaid says that’ll take
a mix of government and private investment,
Source: SQM Research including more apartment blocks in Cairns.
geared towards a variety of property types –
It’ll also take a decent amount of time to build
the properties, and builders have long been
flat out with HomeBuilder-funded projects.

2020 2021 2022
Cairns vacancy rates MORE: tropicnow.com.au

17 • tropicnow.com.au