1525 Riverdale Dr, Hope Island is currently Queensland’s most expensive rental, listed for $11,000 a week
Queensland’s rental market remains tight but stable, with 34 of the state’s 50 regions recording vacancy rates at or below one per cent.
But the Real Estate Institute of Queensland’s (REIQ) June Quarter 2025 Residential Vacancy Rate Report revealed that while conditions remained tight, they were stable over the past three months.
The statewide vacancy rate rose slightly, rising from 0.9 per cent to 1 per cent.
Vacancy rates fell in just four regions - Rockhampton (0.7%), Townsville (0.9%), Cassowary Coast (1%)and Maranoa (0.3%) - declining by -0.1 percentage points.
4 Gardenvale Pocket, Idalia, in Townsville, is listed for $620
They remained unchanged in 15 regions - Brisbane LGA (1.0%), Inner Brisbane (1.2%), Middle Brisbane (1.0%), Outer Brisbane (0.8%), Ipswich (0.8%), Logan (0.8%), Pine Rivers (0.6%), Cairns (0.8%), Mackay (0.8%), Toowoomba (0.5%), Banana (0.5%), Burdekin (0.5%), Cook (0.0%), Mareeba (0.5%), and Whitsunday (1.1%).
12 Yengo Street, Parkinson, in Brisbane is listed for $780
Greater Brisbane’s rate was 0.9%, with parts of the southeast corner showing only slight relief, including Moreton Bay (0.8%), Caboolture (1.0%), Redcliffe (0.7%) and Redland (0.9%), along with the Sunshine Coast (1.0%) and Maroochy Coast (1.3%).
REIQ CEO Antonia Mercorella said the June quarter results showed Queensland’s rental market was holding relatively steady but remained severely undersupplied.
“This continued rental squeeze, while not worsening, is continuing to make a strong case for more investors and more rental accommodation to meet demand,” Mercorella said.
“We’re seeing quarter after quarter of sliver-thin vacancy rate data, showing most of the state could support and sustain greater investment and new dwelling construction.
“There are some positive signs regarding investor interest in Queensland property, which is likely focused in areas where yields remain attractive, and sentiment is stabilising.”
REIQ CEO Antonia Mercorella
The latest ABS lending indicator data shows that Queensland registered the highest annual growth (24% in the year to March 2025) in new loans to investors for properties within the state) among all the states.
Mercorella said jobs and vacancy rates went hand in hand, as did the social and economic fallout when these were both in short supply.
“Our regions rely on being able to attract and retain workers and a big part of this is being able to secure suitable accommodation nearby,” she said.
“The low rate of vacancies and therefore stifled job mobility is especially problematic, given concerns that unemployment may be starting to rise.”
The seasonally adjusted national unemployment rate rose from 4.1 per cent to 4.3 per cent in June, and the Queensland unemployment rate rose from 3.7 per cent to 4.1 per cent.
Mercorella said that alongside fast-tracking the delivery of new housing, we need to rethink the type of homes being built to meet our needs, and these can be regionally specific.
“We must ensure housing diversity reflects modern living arrangements - from smaller dwellings, smaller lot sizes and build-to-rent, to accessible and adaptable housing for an ageing population and even options for multi-generational living,” she said.
The vacancy report revealed that the vast majority of regions (48 out of 50) wre sitting in what the REIQ classifies as a ‘tight’ rental market (up until 2.5%), with some having almost no available stock.
Cook LGA had the tightest market with rental stock sitting at 0 per cent, with no rentals listed in Cooktown at all, followed by Goondiwindi (0.2%).
9 Kurrajong Crescent is listed for $580 a week and is the only rental currently available in Goondiwindi
They were followed closely by Charters Towers and Maranoa (both 0.3%), and a further four regions including Toowoomba, Banana, Burdekin, and Mareeba which all recorded just 0.5 per cent.
At the other end of the scale, two regions entered the ‘weak’ category – defined as vacancy rates above 3.6 per cent - Isaac (4.2%) and Bay Islands (3.7%) which include North Stradbroke, Russell, Macleay, Karragarra, Lamb, and Coochiemudlo Islands.
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This house in Mount Sheridan in Cairns is listed for $690
Noosa came closest to re-entering the healthy range at 2.4 per cent, however this may be because of the price point of the rental properties on offer, meaning that they stay listed for longer.
The biggest increase in vacancies over the quarter were in Bay Islands, up 1.2 per cent, Isaac (+1%), Maryborough (+0.5%), and 0.4 per cent in Southern Downs, Gympie, Central Highlands, Fraser Coast and Noosa.
A rental market is considered ‘healthy’ if it has a vacancy rate between 2.6 and 3.5 per cent.
Ms Mercorella said that while quarterly shifts in some regions were encouraging, this should not be mistaken for a turnaround.
“We know that the data doesn’t tell the whole story, as some renters are consolidating households, delaying moves, or even leaving town due to affordability challenges - these behavioural shifts can have a subtle but real effect on vacancy levels,” she said.
“The June quarter captures a period of natural tenant turnover - the end of financial year, cooler weather in some parts of the state, and school semester transitions can all prompt moves, opening up some properties that may have otherwise remained tenanted.
“Without a meaningful lift in new housing supply, we expect vacancy rates will hover around these tight levels for some time to come.”
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