‘Entrenched’ low vacancy rate amid rising Rocky prices
Rockhampton's property market is "riding high" while some struggle to avoid homelessness.
The Real Estate Institute of Queensland's March 2021 Market Monitor report revealed money from projects such as the Shoalwater Bay Military Training Area upgrade, Rookwood Weir, and the Rockhampton Ring Road were keeping housing supply low and prices high.
"The machinations of post-pandemic supply and demand combined with infrastructure projects, job opportunities and lifestyle factors have all resulted in driving the market to new heights in Rockhampton," the report said.
REIQ Rockhampton Zone chair Noel Livingston said Rockhampton's buyer base included "out-of-towners, local upgraders and downsizers, first-home buyers and investors".
"There's low stock in both sales and rentals right across the board at the moment," he said.
The market monitor added that the region's increasing house prices "have potential to go further".
It said Rockhampton's rental vacancy rate for the December 2020 quarter was said to be 0.3 per cent.
"This followed on from the previous quarter's figure of 0.3 per cent, and the quarter prior which was 0.4 per cent," the report said.
"This run demonstrates how entrenched low vacancy is in Rockhampton."
The REIQ put median rent for a three-bedroom house in the year to December 2020 at $330 a week, up $40 from the previous year.
It said the annual median cost of a two-bedroom unit across the same period rose $28 a week from $222.
"These improved conditions could, of course, stimulate further investor demand," the report said.
"Given the low interest rates and excellent economic prospects for Rockhampton, relatively affordable property with good rental potential could see even more demand over the coming months."
The report said landlords in the rental market were getting a 6 per cent annual yield on houses and a 5.2 per cent yield on units.
REIQ CEO Antonia Mercorella said consecutive price increases were "no surprise".
"As a result of the COVID-19 pandemic, we've seen Queensland's property market perform in ways that go against every economic prediction made over the last 12 months.
"In fact, Queensland property has remained extremely stable, recording a steady rate of growth that's really strengthen its market appeal.
"Between record-low interest rates, low stock availability for sale, improvements in consumer sentiment and Queensland's unbeatable lifestyle, it's no surprise we've also seen broader increases in values month on month in 2021."