Rental price hike in Fraser Coast city highest in nation

A real estate research company has named 34 locations where yearly rent had increased by $1500 or more and this local city tops the list.

Hervey Bay was top of the locations, with an increase in rent prices of 39 per cent across the properties that were compared, Propertyology found.

Hervey Bay has been named as having experienced the biggest increase in rental prices in the nation over the past 18 months when comparing three bedroom houses.

Real estate research website Propertyology named 34 locations where yearly rent had increased by $1500 or more.

Hervey Bay was top of the locations, with an increase in rent prices of 39 per cent across the properties that were compared, Propertyology found.

It was ahead of Gold Coast on 21 per cent, Coffs Harbour on 33 per cent and the Sunshine Coast on 22 per cent.

Bundaberg was also on the list, with a rental price jump of 11 per cent.

It comes after a Housing Crisis Workshop was held in the Bay at the end of last month as tenants continue to struggle to get into properties.

In Maryborough this year, the rental vacancy rate dropped has to 0.2 per cent, while in Hervey Bay it was 0.9 per cent.

Propertyology head of research Simon Pressley said there had been an increase of $1500 or more for a 3-bedroom home in six out of eight capital cities, with the exceptions being Sydney and Melbourne.

“These large rent increases are only marginally influenced by COVID,” he said.

Hervey Bay was top of the locations, with an increase in rent prices of 39 per cent across the properties that were compared, Propertyology found.

“Rental supply is determined by the volume of people who buy properties for investment purposes.

“This problem has evolved over a few years.”

He said investor participation rates had been well below demand volumes for several years.

Speaking to the Chronicle last week, Fraser Coast Property Industry Association president Glen Winney said it could take 12 months for the rental industry to find balance.

“With the federal government home builder grant, most new houses are getting built for owner occupiers because that’s where the incentives are, therefore our normal supply of new investment product has dropped dramatically in the last 12 months,” Mr Winney said.

“Now the home builder grant is over, we are seeing investors coming back into the market, but it could take 12 months to balance out the vacancy shortage.”

“One part of the market we are not seeing getting fixed at the moment is the social housing crisis and the homeless, there needs to be more focus on affordable accommodation and State government spending on housing.”

Originally published as Rental price hike in Fraser Coast city highest in nation