The Real Estate Institute of Queensland’s latest data has shown the tourist region’s vacancy rate almost doubled in the March quarter to an almost-healthy rate of 2.3 per cent.

Local agents remain mystified by the increase and it was only one quarter’s result, but it also followed the council’s moves last year to restrict the shift of rental properties from the long-term market to holiday rental market now dominated by the likes of Airbnb and Stayz.

There have been local media reports of property owners in Noosa dropping out of the holiday market because of the difficulties created by the council’s rules.

Other tourist regions also showed an improvement.

Under local laws introduced last year, short term accommodation such as properties listed with Airbnb must have council approval to operate in a bid to crack down on the system which has led to complaints as well as a shortage of longer-term rental accommodation for residential use.

Rents have jumped by 51 per cent in Noosa over the past five years, according to a University of NSW report and a lot of that has been attributed to the shortage created by accommodation moving into short-term stays.

Tourist towns like Noosa also face problems with the normally quieter residential areas having to deal with holiday-makers. The issues have consistently been about amenity and relate to noise, parties, parking and garbage.

Noosa’s code of conduct for the short stay accommodation put restrictions on loud cheering, clapping and yelling on decks and verandahs at the properties in a bid to reduce the impact on residents. There was also a guide to the length of stay of renters because of issues surrounding the first-night partying.

The council’s strategy is being closely watched by other councils facing the same problems.

Elsewhere, the rental crisis was showing signs of easing with half of the state’s regions showing a relaxation of record-breaking vacancy rates, according to the REIQ data.

But the situation remains tight. The REIQ the changes were minor and 11 regions had not changed at all while 13 got slightly worse.

The worst rate was in the Southern Downs-Goondiwindi region of 0.1 per cent. The highest vacancy rate was in the Moreton Bay islands (5.5 per cent) within Redlands.

The state-wide vacancy rate rose marginally from 0.8 per cent to 0.9 per cent in the March 2023 quarter, still well short of the ideal 2.6 per cent to 3.5 per cent healthy rate.

Mt Isa moved into healthy market status for the first time since the pandemic while Gladstone reached 1.8 per cent.

REIQ chief executive Antonia Mercorella said most of the state was a long way from being a healthy market and housing supply was the reason.

“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 so that we can maintain roofs over the heads of our growing population,” she said.

“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.”

She said that despite the heavy reliance on private investors in the rental space, dangerous behaviour towards investors was continuing.

“Alarmingly, talk of rent control and imposing greater restrictions on the owners of rental properties is being touted as the solution to the rental crisis,” she said.

“Making investment less appealing and demonising investors is not the right solution. We should be focussed on the underlying cause of the rental crisis and increasing housing supply, including social housing.