The latest REIQ September 2025 Vacancy Report shows Queensland’s rental market effectively frozen, holding a statewide vacancy rate of just 1.0%—well below the healthy 2.6–3.5% range that supports tenant mobility and sustainable population growth. With 38 out of 50 regions sitting at or below 1.0%, the shortage of available rental properties continues to drive intense competition and limit tenant movement.
Nearly half of Queensland’s markets tightened further this quarter, highlighting persistent demand pressure. Even slight easing in a handful of regions has not been enough to offset the broader imbalance between stock availability and tenant demand.
Longer tenancy periods reflect necessity rather than preference, as renters renew leases simply to avoid the difficulty of securing an alternative property. Property managers continue to receive high application volumes, with many tenants applying to multiple properties simultaneously as they attempt to secure accommodation.
Opportunities for Investors
Lessor sentiment is evolving amid tight conditions, rising holding costs, and legislative changes affecting break-lease scenarios. Owners are becoming increasingly cautious, mindful of advertising costs and vacancy risks in a market where demand is strong—but tenant decision-making has become more fluid.
Looking ahead, meaningful improvement in rental availability appears unlikely without deliberate action to increase supply. Strategic measures—such as accelerating new housing construction, incentivising private investment, and supporting alternative rental formats like co-living and smaller housing typologies—will be critical in restoring balance.
In this environment, well-located investment properties and yield-oriented models continue to perform strongly, with opportunities favouring landlords positioned to meet Queensland’s sustained rental demand.
