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🚫 Low Vacancy City
Today’s newsletter is 874 words: 4 minute read.
Did you know: The 10-cent container refund on every glass wine and spirit bottle has just been announced and will start November 1 this year.
Cheers to Queensland.
In today’s email:
Low vacancy: The biggest south-east Queensland squeeze in a very long time
RBA: BAD (apparently)
Around the Web (Snippets): Health-tech, Apple and Google Drone Delivery
🎧 Listen up - A masterclass on pitching to raise money
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1. One big thing: Vacancy Rates
In a media release on April 18 2023, the Real Estate Institute of Queensland (REIQ) reported that the apartment vacancy rate for Queensland is now at 0.9 %.
The release, with a headline that reads, ‘Queensland is still worlds away from a healthy rental market’, confirms we are at an obscenely low vacancy.
Why it matters
Real estate professionals, investors, landlords, leaseholders, buyers, and renters are all affected by the low vacancy rates that Queensland, in general, and the Gold Coast, is particularly experiencing heading into the second quarter of 2023.
The squeeze is real.
THE REIQ is a beacon for the real estate profession.
It categorises rental markets as tight, healthy, or weak based on the aggregate vacancy rate.
The vacancy percentage rate classifications are:
0 – 2.5% = tight
6 - 3.5% = healthy
Above 6% = Weak
In the report, the statewide vacancy rate increased ever so slightly, from a meagre 0.8% in the December 2022 quarter to a marginally better 0.9% in the March 2023 quarter.
In short, it remains woefully short of the coveted 2.6-3.5% healthy rate benchmark.
What the people say
REIQ CEO Antonia Mercorella is quoted in the release,
“Obscenely tight rental conditions continue in Queensland.
When we’re witnessing these very tight vacancy rates persisting right across the state, it’s highlighting the importance of ensuring that we keep levels of property investment up to maintain rooves over the heads of our growing population.
We desperately need more rental properties, but investors are not being encouraged to put their savings into property – on the contrary, often they’re being deterred and punished.”
What to watch
In the last few days, the Queensland government's proposal to consider rent caps has confirmed that they are considering what appears to be the opposite of what we need.
In short, disincentives for developers and investors cause more harm than good to the city's economy.
Developers seeking to cash in on the continuing low vacancy rate in GC and Queensland must consider land availability.
Investors, builders, and engineers are looking skyward, which locals appear to hate.
With a population median age of 37, the expectation is that Gold Coast will continue to attract new residents and business year after year.
With only 1402 square kilometres of surface land in Gold Coast, the skyward building is the only solution to preserve the open spaces and accommodate what is already Australia’s 6th largest city.
2. RBA Good Times Are A-Changin'
Australia's Reserve Bank (RBA) has undergone its first external review in a whopping 40 years!
A comprehensive list of 51 recommendations aimed at sprucing up the old central bank.
Was it even needed?
The RBA work in a tricky space, and for the most part, Australia is still one of the most desired countries to move to and live in, even with all the problems.
Sure, there are out-of-the-ordinary local pressures on various fronts, but they are way worse overseas.
And, when Government intervenes, things generally go even more pear-shaped.
Here’s a peek at the highlights.
RBA Purpose: Two Objectives, One Mission
The RBA is encouraged to embrace a dual mandate, juggling the art of price stability and the science of full employment while balancing the tightrope of inflation control and employment support.
Targeting Inflation Like a Pro
It's time to bid farewell to the vague "on average, over time" phrase.
Instead, the RBA should spell out their flexibility in a tell-all, addressing target return timelines, complete employment assessments, and any financial vulnerability considerations.
Collaborative power: Boost information sharing between the RBA and Government
Makeovers: tool reviews every five years
Clarify: RBA's financial stability role and responsibilities
Climate risks: A hot topic. More analysis.
Remix: Transform the Monetary Policy Board with expert members
See-through: Increase transparency and accountability for Board members
A new board: Establish a Governance Board for guidance and oversight
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4. Around The Web (Snippets)
India: got its first-ever Apple retail store just yesterday
Wing it: Google’s Gold Coast Drone Delivery trials branch out
Two: child-focused health technologies from Griffith University researchers have secured spots in LuminaX, Australia's leading health-tech accelerator.
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