Rents down across greater Townsville

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 in the past three months Greater Townsville house rents were down across nine 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.

The biggest drop was in the North Ward house market where the median rent fell 8 per cent in the May quarter to sit at $388 per week.

Next was the Aitkenvale unit market where the average rent dropped 5 per cent in the past three months to $380, followed by the house market in Douglas with rents down 4 per cent to a median of $530.

The largest increase was in the West End unit market where the median rent was up 8 per cent since February to $388, followed by the Rosslea unit market, up 5 per cent to a median of $400, and the Townsville City unit market, up 5 per cent to a median of $550.

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The home at 13 Gregory St, North Ward, is for rent for $470 per week. Picture: realestate.com.au

REA Group economist Anne Flaherty said investor activity in Townsville may have helped stabilise the local rental market.

“Townsville has seen a surge in investor interest and I think it’s one of the things that has increased the total number of rental properties in Townsville,” she said.

“We do know if you see a surge in investor activity it can slow down rent growth.”

Real Estate Institute Queensland data from the March quarter showed the vacancy rate in Townsville was sitting at 1 per cent, down from 1.2 per cent in the December 2024 quarter and in line with the September 2024 quarter figure.

REIQ CEO, Antonia Mercorella said low vacancy rates such as the 1 per cent in Townsville were concerning.

“The REIQ classifies a “healthy” vacancy rate as between 2.6-3.5 per cent to sustain a stable rental market that caters to population growth and natural housing mobility,” Ms Mercorella said.

“The state wide vacancy rate remains tight at 0.9 per cent as of the March 2025 quarter, but has hovered around a critically low 1 per cent since December 2023.

“In many parts of the state, vacancy rates are even lower, indicating persistent pressure on supply and ongoing rental stress.”

REIQ CEO Antonia Mercorella. Picture: Liam Kidston

The PropTrack data showed in Queensland, rent prices decreased in 218 house or unit markets, and remained stable in a further 274 suburbs across the May quarter.

Ms Flaherty said she was surprised to see 35 per cent of Queensland record rent decreases.

“It’s good to see … a bit of stabilisation in rents,” she said.

“We have seen a significant slowdown in the pace of rental growth and some rents even moving backwards is good news for renters.

“The levels that rents were previously increasing were very challenging for a lot of households and well out of the ordinary.

“To now be in a situation where rent growth is in line with the historical average levels is a good thing.”

Ms Mercorella said rent decreases and stabilisation across Queensland suggested the market may 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 renewing existing leases in an uncertain market.”

The home at 114 Riverbend Drive, Douglas, is for rent for $520 per week. Picture: realestate.com.au

TOWNSVILLE’S BIGGEST RENT DECREASES, MAY 2025 QUARTER

TOWNSVILLE’S BIGGEST RENT INCREASES, MAY 2025 QUARTER

(SOURCE: PropTrack)

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