Rental prices skyrocket across the Gold Coast
GOLD Coast rents are skyrocketing as a major rental crisis hits the city.
Just 0.9 per cent of the city’s stock of properties for rent are available — a record low that is gold for landlords but is pushing prospective tenants into increasingly desperate tactics to secure a place to live.
Much of the demand is being fuelled by tradesmen moving to the city to work in the construction industry that is booming thanks to the light rail network and the looming 2018 Commonwealth Games.
The rental squeeze is the tightest it has been on the Gold Coast in decades
CoreLogic says the Gold Coast median house rent is $500 and $395 for units.
Tugun, Burleigh, Palm Beach, Arundel and Worongary postcodes have the lowest vacancy rates, according to property market report, Christopher’s Housing Boom and Bust Report 2017, released by SQM Research today.
The vacancy rate in Tugun plunged the most, with a one per cent drop between 2015 and 2016, followed by Southport which dipped 0.4 per cent.
Rental prices soared across most postcodes.
Worongary had the biggest house rental increase, from $536 in 2015 to $628 this year.
Surfers Paradise surged from $588 to $666.
“Given the ongoing lead-up to the 2018 Commonwealth Games, a major effort by local authorities to reduce crime and just a tad better road infrastructure, I think the Gold Coast will continue to outperform Brisbane,” the report states.
At the other end of the scale, Coomera and Ormeau had the highest vacancy rates of 4.5 per cent and 2.2 per cent.
Herron Todd White director Tod Gillespie said he was surprised the northern corridor had not pushed up the overall vacancy rate and he expected vacancy rates to remain low.
“There is a lot of construction going on and there are a lot of people who have come back to the Coast,” he said.
“Property prices are getting to a level where people can’t afford them and so they have no choice but to rent in those areas.”
Property market analyst Colleen Coyne of Colleen Coyne Property Research urged investors to take a cautious approach and be prepared to hold on to a property for more than five years.
“At the moment the Gold Coast is looking very good compared to Brisbane and Melbourne,” Ms Coyne said.
“But don’t assume it’s going to continue as time goes by and more products are finished.
“I think investors would be wise to avoid generic products such as house and land products. That’s one of the reasons why 4209 (Coomera and Pimpama postcode) has the highest vacancy rate.
“Light rail stage two will stimulate demand in that corridor and also Westfield Coomera when it comes.
“While you can say the Coast is a hotspot at the moment because vacancy rates are at a historic low, overall you need to look at each suburb on its own.”
REIQ Gold Coast chairman John Newlands said the rental crisis was the result of a lack of supply caused by the booming tourism and building sectors.
“There’s lots of people who are coming back to the Gold Coast, there’s more jobs and there’s more tenants than ever before,” Mr Newlands said.
Article provided by Aleisha Pidgeon, Gold Coast Bulletin – November 3, 2016