Rental market heating up for Bundy
BUNDABERG'S rental market performance has improved over the past year, with vacancies tightening from 4 per cent in September 2017 to 2.2 per cent in September this year.
The 2019 outlook is positive as vacancies are forecast to sit within the tight and healthy range and rents will hold firm or increase at a modest pace.
The latest REIQ figures, released in its Queensland Market Monitor on the weekend, show median rents, particularly for houses, have generally followed an upward trend for the past year, indicating that demand is on the rise.
"We hope that the improving market conditions of the rental market has a positive impact on the performance of the sales market over the coming months," REIQ CEO Antonia Mercorella said.
"The Bundaberg residential property market has generally been a steady performer for the past decade, clearly indicating that the regional economy is in need of business and infrastructure investment to promote property ownership," Ms Mercorella said.
The rental market seems to be stabilising after a period of correction."
She said for a second consecutive quarter, vacancies in Bundaberg held at 2.2 per cent over the September quarter, revealing steady dynamics of rental supply and demand.
Similar to the previous quarter, bonds data revealed a small increase in the number of regional rental properties, from 9409 in September 2017 to 9479 in September this year.
Median rents for some dwellings increased or held steady for the past year, with the exception of three-bedroom townhouses reporting a fall in the weekly median rent from $295 in September 2017 to $290 in September this year.
House yields increased slightly from 5.4 per cent in June to 5.6 per cent in September as the median house price fell over the quarter.
Houses in Bundaberg achieve the highest gross yield of all areas analysed in regional markets across the state.
Unit investors should expect to achieve indicative yields of 5.8 per cent, slightly higher than house yields.
"Market trend indicators have shown signs of tougher market conditions wherein supply is on the rise and demand is slowing down," Ms Mercorella said.
Meanwhile, the unit market performance fell 1.8 per cent over the quarter, from $219,000 in June 2018 to $215,000 in September 2018.
Looking at the annual data, the annual median unit price fell 2.7 per cent, from $251,700 in September 2017 to $245,000 in September this year.
This compares with the annual median unit price of $250,000 in September 2013.
Similar to the house market, unit listing volumes followed an upward path while unit sales volumes contracted, adding more challenges to sales market.
A unit in Bundaberg takes about 82 days to sell with a discount of 6.6 per cent.
On Saturday the NewsMail reported the quarterly median house sale price fell 5.2 per cent, from $290,000 in June 2018 to $275,000 in September 2018.
Despite the quarterly median price fall, the house market was steady over the past 12 months, with the annual median house price holding steady at $285,000.
Looking at the five-year data, the house market increased 3.3 per cent, from $276,000 in September 2013 to $285,000 in September this year.