Brett Warren , National Director – Metropole Group
Queensland’s rental market is stuck in gridlock. According to the REIQ’s latest report, the state’s vacancy rate remains locked at one per cent, with 38 out of 50 regions recording rates at or below that level.
In practical terms, this means renters are staying put, not necessarily by choice, but because there’s nowhere else to go. It’s a market defined by scarcity, not mobility.
This entrenched tightness sends a clear signal: demand isn’t just strong – it’s immobile.
Properties in Greater Brisbane, Ipswich, Logan, and the Sunshine Coast are seeing vacancy rates well below the healthy range of 2.6% to 3.5%, while regional hubs like Toowoomba, Cairns, and Townsville are similarly constrained. Even modest easing in places like Gladstone and Isaac hasn’t shifted the broader picture.
This environment creates two key dynamics. First, rental yields are being supported by consistent demand and limited turnover. Second, tenant behaviour is changing – longer leases, more applications per listing, and rising break-lease activity as renters scramble for better options.
Not every property will perform equally in a tight market. Investors need to focus on well-located, appropriately priced assets that align with tenant demand. Properties that are overpriced or poorly presented are struggling to find tenants, even in high-demand areas. With new supply lagging and policy uncertainty clouding investor sentiment, the window to secure high-performing rental assets in Queensland is narrowing. For those who act strategically, this gridlock could be the foundation for long-term growth and income stability.
