Coronavirus Gold Coast: Rental vacancies up and asking prices down in COVID-19 pandemic

The impact of the COVID-19 pandemic is showing with a major shift in the availability and prices of rental homes on the Gold Coast.

MASS lay-offs during the COVID-19 downturn have seen rental vacancies surge and asking prices slashed.

A survey of rents in six towers in Broadbeach and Surfers Paradise before and after the COVID-19 shutdown has found discounts as high as 32 per cent advertised for some.

It comes as CoreLogic data shows rental listings surged more than 12 per cent between March and April.

A number of vacancies have opened up particularly near employment hubs such as The Star complex and Pacific Fair.

Prior to the pandemic one-bedroom units in Boulevard North Broadbeach went for $450 per week. They are now advertised for $350 to $390, a discount of up to 22 per cent.

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Rent prices are falling at Bel Air in Broadbeach.

In Circle on Cavill in Surfers Paradise a two-bedroom flat was advertised for $630 earlier this year. That rate has fallen 32 per cent to just $425.

Rent for three and one-bedroom apartments in Bel Air on Broadbeach across the road from Pacific Fair, have been cut by nine and eight per cent to $525 and $360 per week respectively.

REIQ Gold Coast zone chair Andrew Henderson said the market was adjusting to a forced exodus of hospitality and retail workers.

“They’ve gone back home or to friends because they weren’t able to afford to stay where they were,” he said. “The number of (formerly) holiday-let and Airbnb apartments entering the market increased competition (for tenants).”

Mr Henderson said cuts were biggest for units in the “affordable” price bracket of $500 or less per week.

“Take around the Pacific Fair, casino and Convention Centre. Obviously there have been a lot of jobs disappear from three big employers and hence anything within walking distance was a popular pocket that at the moment is showing a high number of vacancies because the jobs aren’t there.”

Rent prices have nosedived at Circle on Cavill in Surfers Paradise.

Mr Henderson said he expected the market to recover once restrictions are lifted during the phased easing of the lockdown. He said it was a “tenants’ market” because of the high number of vacancies.

But Tenants Queensland CEO Penny Carr warned tenants considering breaking leases to move to cheaper digs face a high threshold. One way was if they can show their household (with one or a number of people) has had a 75 per cent reduction in income and less than $5000 in savings.

The tenant/s can then apply to terminate their lease with one week’s notice.

She said the other option was to try to get a rent reduction or apply for excessive hardship. For the latter they must show a personal impact by COVID-19, either contracting the virus, seeing income fall 25 per cent so they are paying more than 30 per cent of their total income in rent.

She said excessive hardship cases used to go directly to the Queensland Civil and Administrative Tribunal but now must go through conciliation first, dragging out the process further for tenants.