For Rent sign in front of new house
For Rent sign in front of new house KentWeakley

Rockhampton's rental vacancy rate tightens again

RENTAL vacancy rates continue to tighten in Rockhampton, adding weight to further evidence of a property market recovery.

Property valuers Herron Todd White noted the vacancy rate had fallen to about 3 per cent in its Month in Review for July report after the vacancy rate had been estimated at 3.5 per cent in June.

This is a major improvement in fortune for the region after the Rockhampton vacancy rate reached 8 per cent just two years ago.

"The short to medium term performance of the Rockhampton market and region overall is generally considered to be a period of stabilisation,” HTW said.

"Capital growth is not expected to be huge but returns should remain fairly solid in the interim with vacancy rates showing a tightening trend, currently at approximately three per cent.

"Upon reflection from this time last year, we are happy to report our position on the property clock has improved, from a declining market to now be at the bottom of the market.

"As a result, $500,000 will purchase a similar product type as 12 months ago.”

A snapshot of four-bedroom homes for rent in Rockhampton yesterday showed 80 properties available across a wide price range.

Gracemere had the most properties listed at around $300 a week while a four-bedroom home in upmarket Frenchville was asking $540 a week.

A four-bedroom home in Earl St at West Rockhampton was being advertised at $440 a week while a high-set weatherboard home in Berserker would cost just $230 a week.

HTW said sets of flats remained a sought-after option for investors. "Currently $500,000 is likely to buy a set of up to five flats,” it said.

"With recent sales of flats showing gross returns in the order of 8 per cent to 9 per cent, this is probably the best return available in current market conditions.”

HTW said buyers at this price point ($500,000) should be reasonably comfortable investing into the current market where prices have been stabilising over recent months and a number of infrastructure projects are in the pipeline for the region including Rookwood Weir, the Capricorn Highway duplication and the Rockhampton Ring Road project.