Gold Coast property: Rental vacancy rate reaches record low

Renters are facing an almost impossible task finding somewhere to live on the Gold Coast, with the vacancy rate across the city hitting record lows. THESE ARE THE SUBURBS WORST AFFECTED

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RENTERS are facing an almost impossible task finding somewhere to live on the Gold Coast, with the vacancy rate across the city hitting record lows.

Figures from the Real Estate Institute of Queensland show vacancy rates dipped to 0.9% in December - the first time rates have fallen below one per cent on the Gold Coast.

Interstate migration is being blamed for the tightening supply, with renters reporting huge lines at home opens – a stark contrast to the situation as recently as June last year, when borders were shut and stock levels stood at three per cent.

COAST SUBURBS WHERE HOUSE PRICES HAVE SOARED

“What we’re seeing is an unprecedented level of diminishing rental availability that’s placing significant pressure on our State’s housing sector – so much so that it’s unsustainable and why urgent action is required to better support both increased and ongoing property investor activity in the Queensland property market and the contributions they make to the state economy,” said Antonia Mercorella, CEO of the REIQ.

“Every Queenslander should have access to a safe, secure and affordable home that meets their needs and supports them. That’s why the Palaszczuk Government should consider abolishing stamp duty. It’s the most significant barrier to home ownership, discouraging housing turnover, restricting mobility and property investment – something we desperately require.”

The entrance to Warner Brothers Movie World in Oxenford. The vacancy rate in the northern Gold Coast suburb has dropped to just 0.1%. (AAP Image/Dave Hunt)

The lack of stock is affecting suburbs the length and breadth of the Coast.

In the north, which has a median vacancy of 0.6%, stocks have reached all-time lows in areas such as Arundel (0.6%), Labrador (0.7%), Oxenford (0.1%), Runaway Bay (0.5%) and Southport (0.7%).

It’s the same story in the south, with a median vacancy of 0.3% across suburbs including Broadbeach (0.8%), Currumbin (0.3%), Miami (0.2%), Palm Beach (0.3%) and Varsity Lakes (0.6%).

TOP 10 SUBURBS FOR HOME BUYERS ON GOLD COAST

Surfers Paradise, which recorded more than 2,100 vacant rentals at the peak of the COVID-19 pandemic nine months ago, currently has 0.7% stock availability.

“During the pandemic, the Palaszczuk Government introduced a range of measures keeping tenants in place for longer which is part of the reason we have incredibly low rental availability across Queensland,” said Ms Mercorella.

“We have also seen a significant amount of interstate migration, with renters also moving to Queensland, so all of these factors have contributed to our current tight vacancy rates.”

The lack of supply is forcing rental costs upwards, with a study by Aussie Home Loans saying it is now almost as expensive to rent a house as to buy one on the Gold Coast.

The report calculated average rent for a house on the Coast is $2,635 a month, while average repayments on a variable rate mortgage in the city are $2,774. That mortgage cost drops to $2,349 if the householder chooses a three-year fixed term rate.

The figures for units were even more stark, with average rent $2,019 a month but the average cost of a variable rate mortgage just $1,786.

Ray White Surfers Paradise CEO Andrew Bell said the demand for rental properties in his agency had been fuelled by southerners wanting sea change and moving to the Gold Coast.

The flip side of the shortage was investors could be reassured of finding a tenant sooner rather than later.

“There is absolutely a time we need more investors and it is at a time when it should be more attractive to investors,” he said.

“The interest rates are so low it’s a very attractive proposition for investors.”

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