In good news for tenants, rents dropped or remained stable across half of the Townsville region in the May quarter,while the majority of increases were sitting below 6 per cent.The latest PropTrack data showed that in the past three months Greater Townsville house rents were down acrossnine suburbs, stable across a further six and up across 15.In the unit market, rents were down in three suburbs, stable in seven and up in seven. REIQ chief executive Antonia Mercorella said that low vacancy rates such as the 1 per cent in Townsville wereconcerning. “The REIQ classifies a “healthy” vacancy rate as between 2.6-3.5 per cent to sustain a stable rentalmarket that caters to population growth and natural housing mobility,” Ms Mercorella said.Ms Mercorella said that rent decreases and stabilisation across Queensland suggested the market might have reached an affordability ceiling, prompting both lessors and tenants to recalibrate.“Lessors are increasingly aware that each week a rental property sits vacant, it comes at a cost, and many are making pragmatic decisions around pricing to secure consistent, sustainable long-term tenancies,” she said.“Property managers are reporting more subdued letting activity, longer days on market, and lessors being more careful with tenant selection.“At the same time, tenants are staying put for longer where they can, recognising the value and stability of renewingexisting leases in an uncertain market.” Townsville Bulletin | Wednesday June 11, 2025
