The Bundaberg Region's improving employment market is driving gains for property investors in the rental market, according to December quarter data from the Real Estate Institute of Queensland.
The latest REIQ report shows vacancy rates tightening in Bundaberg, down to 2 per cent.
Council's planning and development spokesman Ross Sommerfeld said this was positive news, which would encourage investment and the construction industry.
The vacancy rate had climbed to 4.6 per cent in the March 2017 quarter.
“The latest figures are a good sign that confidence is increasing,” Cr Sommerfeld said.
“When vacancy rates are high, that means people are doing it tough.
“A tightening rental market encourages investors to meet the demand, which stimulates construction activity.”
Sales market holds steady
REIQ said while the rental market had improved for investors, the sales market in Bundaberg was holding steady, with the annual median sale price remaining static for the past 12 months.
“It's our expectation that the sales market will likely show signs of improvement if the job market is secure, with workers able to secure finance for housing purchases.”
In the broader Queensland market, REIQ said several factors were triggering investor nerves in the rental sector.
“As federal election campaigning begins to ramp up, uncertainty around potential negative gearing adjustments and capital gains tax changes have caused many investors to hit pause on possible buying activity,” the real estate organisation said.
“The REIQ is hearing from agents that financing is causing contracts to fall over.
“We're seeing tightened lending restrictions slowing both investors and first-home buyers from getting into the market.”