Every Qld suburb’s rent: Leasing now cheaper in 124 suburbs

Renting has become cheaper in 124 suburbs across the state, finally providing some relief for struggling tenants as experts say the worst may be over. FIND YOUR SUBURB

RENTING has become cheaper in more than 120 suburbs across the state in the past three months, finally providing some relief for struggling tenants as experts declare the worst may be over.

Exclusive data from PropTrack reveals median weekly rents dropped by up to 9 per cent in 124 suburbs during the September quarter, led by regional locations outside of Greater Brisbane.

This two-bedroom unit at 2/27 Hunter St, Centenary Heights, is available for rent for $275 a week - gardening included.

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The median weekly unit rent in Kawana on the Sunshine Coast is now 9.1 per cent cheaper at $300, followed by Mundingburra in Townsville — down 8.3 per cent to $330, and Centenary Heights in Toowoomba, where unit tenants are now 7.9 per cent better off at $350.

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The biggest decline in house rents for the quarter was recorded in Hollywell on the Gold Coast, where the median weekly rent is 8.6 per cent cheaper at $850, followed by Mooloolaba, where the median house rent has dropped 7.7 per cent to $750 a week.

This two-bedroom unit at 1/7 Gulliver St, Mundingburra, is available to rent for $370 a week.

PropTrack senior economist Paul Ryan said rental growth in Queensland had passed its peak, with the gains of the past year unlikely to be repeated.

“We’re definitely past the peak in growth,” Mr Ryan said. “I think affordability starts to bite really strongly if we continue to see the same rent growth. I don’t think it can be repeated for another year.”

Paul Ryan is a senior economist at PropTrack.

Mr Ryan said the data showed households were responding to the past year’s rent rises in two ways — by leasing units over houses, and by looking for rentals further away from the city.

“The growth in unit rents has been stronger than houses across Brisbane in the past 12 months,” he said.

“Looking at the list of suburbs (where rents have dropped), a lot are in regional Queensland, in areas like Townsville and Toowoomba, which shows there’s less pressure on the regional Queensland market than there has been in the past three years.

This three-bedroom house at 25 Jacaranda Ave, Hollywell, is available to rent for $750 a week.

“We are still seeing population flows from NSW and Victoria into Queensland, but it does look like demand has reduced a bit since the Covid period supercharged that internal migration.”

But it’s not all good news. The figures show weekly rents have also jumped by up to 20 per cent in just three months in 540 Queensland suburbs, led by units in Sandgate, and houses in Taringa and Yeronga.

This four-bedroom house at 64 Balyarta Cres, Mooloolaba, is available for rent for $800 a week.

Over the past 12 months, Brisbane’s typical weekly rent has risen 12 per cent in the past 12 months, and seven per cent across the rest of the state.

Queensland’s overall rental growth remained steady over the quarter, while vacancy rates eased slightly to 0.9 per cent.

This three-bedroom house at 44 Goldsbrough Rd, Taringa, is available to rent for $750 a week.

On the Gold Coast, where competition for rentals is particularly fierce, the typical weekly rent for a unit has risen 14.5 per cent over the past 12 months to $630. House rents are up 11.4 per cent to $780.

Mr Ryan said the figures reflected strong internal migration to the Gold Coast, and a shortage of available properties in response to a “reorganisation of households” through the pandemic.

Covid’s rise in remote working meant demand for more space, while many former investment properties were sold to owner-occupiers.

This 3-bedroom, 2-bathroom Paradise Point home was listed to rent for $1200.

“There’s fierce competition for affordable rentals across the Gold Coast, and that is not unique to the region but is a trend across Queensland and the country,” he said.

“Affordability is pushing more renters to units and that has meant a lot of the cheaper parts of the Gold Coast have seen really strong growth over the past year and particularly over the past quarter.”

Houses in ritzy Paradise Point recorded the Gold Coast’s steepest annual rent rise of 33 per cent to a median of $1,200.

A townhouse in this Pacific Pines complex is available to rent for $740 a week.

Renters of units in Pacific Pines are paying 30 per cent more, bringing the weekly cost to $650, while in Upper Coomera rents are up 21 per cent to $575.

Katrina Keegan of Harcourts Coastal said the spike in rental demand had in turn drawn investors to the apartment market.

“Having the permanent rental market increase by 25 to 30 per cent just in this year alone has meant there is a lot more confidence in buying apartments on the Gold Coast because you no longer have to rely on the holiday rental market and that is providing owners with more stability around their investment,” Ms Keegan said.

A four-bedroom waterfront home in an exclusive Southport location costs $2,500 a week to rent.

“I also have a lot of clients who are downsizing and they take on a 6-month rental to try out apartment living before they buy, and then a lot of boomers who are realising the benefits of living in an apartment and having access to a lot of those luxury facilities, such as a pool and a gym, that potentially you don’t have in a freestanding home.”

Ray White AKG business development manager Lewis Masters said investor interest had picked up in the more affordable markets south of Brisbane.

A two-bedroom apartment in this Hayle St, Burleigh Heads building is for rent for $800 a week

“We’re seeing a lot of first-time investors,” Mr Masters said. “With interest rates on hold, there’s a bit more confidence that we can feel in the market and while rents are still high, investors are doing pretty well.”

SQM Research recorded Brisbane’s vacancy rate easing in the past month, with a slight gaining of 0.1 per cent to 1 per cent in September.

SQM Research managing director Louis Christopher said overseas migration was keeping pressure on the rental market, especially given the shortage of new dwellings being built.

“What is also noteworthy in September was the return to very tight rental conditions for

Australia’s regional townships,” Mr Christopher said.

“It would suggest the population overflow is making many look once more to areas outside the capital cities in order to find shelter.

“Going forward, the market may find some seasonal relief after October, however it is unlikely rental growth will pause.”