Queensland’s Gold Coast Rental Property Crisis

The Real Estate Institute of Queensland’s December quarter estimates confirmed regional Queensland’s rental squeeze, and anecdotal evidence has showed no signs of recovery since.

Vacancy rates on the Gold Coast had dropped to historic lows as a result of government efforts to hold tenants in place during the pandemic, along with population increases from interstate residents re-settling on the Gold Coast to take advantage of lower rents and home prices compared to Sydney and Melbourne.

A Gold Coast property manager has exposed the high emotional cost of the city’s housing crisis, when hundreds of desperate renters show up to inspections afraid they will be evicted.

The number of properties available for rent on the Gold Coast has reached an all-time low, as renters compete for properties in the area.

After peaking at 10% in May during the height of the COV ID-19 pandemic, the vacancy rate on the Gold Coast has dropped to 0.9% in the December quarter, according to Real Estate Institute of Queensland data.

In an article on ABC website regarding the Gold Coasts tight rental market:

 

Burleigh Waters resident Aline Christ said her real estate agent proposed a 15 per cent increase to her rent, due to the competitive market.

“My salary doesn’t really reflect that type of price for rent, especially being a single mother and I am the sole provider,” she said.

 

The Gold Coast’s southern suburbs have done the worse, with an average vacancy rate of just 0.3%.

According to Housing Minister Leanne Enoch, the condition has deteriorated to the point that citizens from other states are able to pay a year’s rent in advance to get a home.

According to a real estate dealer, the Gold Coast’s rental market has become highly competitive, with stock dwindling as buyers sell up.  People have also bid more than the advertising price to secure a home.

Gold Coast vacancy rates have fallen below 1%, although Metricon Queensland has registered a “extraordinary” 400% surge in interstate inquiries for new homes.

People have been forced to lower their hopes when they look for a rental house for months.

 

The Sunshine Coast and Gold Coast remain the two most prominent interstate migration destinations.

Gold Coast Removalist company First Choice Removals reports a big increase in business, which they say is sometimes forcing them to do double and triple shifts seven days a week just to keep up and ensure customers aren’t having to move their furniture to storage or stay in Hotels.

 

The Sunshine Coast may be attracting large crowds due to its liveability, affordability, and lifestyle, as well as economic growth, schooling, and an inclusive community, but its rental demand hasn’t changed in months, remaining at 0.3 percent.

Furthermore, record low vacancy rates have been recorded in the Gold Coast. The north has a median vacancy rate of 0.6%.  Markets hit all-time lows in the north with Oxenford (0.1), Runaway Bay (0.5), Arundel (0.6), Labrador (0.7), and Southport, which has a median vacancy rate of 0.6%. (0.7).

The same is true in the south, with a median vacancy rate of 0.3% across suburbs like Broadbeach.  According to SQM Research, vacancy rates in the Gold Coast’s southern suburbs, such as Currumbin, have fallen to 0.3% in December 2020.  Vacancies fell to a median of 0.3% in the southern suburbs, including Miami (0.2), Currumbin (0.3), Palm Beach (0.3), Varsity Lakes (0.6), and Broadbeach (0.6). (0.8).

Although the median rent for a two-bedroom apartment dropped from March to June of last year, it started to rise again by September.

Meanwhile, according to PRD report, the median unit sale price has risen 9.4 percent since 2016 to $455,000 per unit.

According to the survey, up to 75,000 renters nationally currently have deferred rent loans from 2020, and while housing prices fell by 0.5%, the average renter’s income fell by 5%.

According to a spokeswoman for the Queensland Department of Housing, 392 new social housing homes will be constructed in the Gold Coast area by 2022, contributing to the existing supply of 5,094.

The department offers a suite of assistance products, including many private rental market products intended to stabilize private market tenancies and allow customers to create a productive rental background.

According to the spokeswoman, there are already 3,392 applicants on the Gold Coast housing registry waitlist.

 

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