Rents soared on the Gold Coast over the last year
The Gold Coast’s rental market has plunged further into crisis, with rents soaring to new highs as potential tenants battle for a dwindling supply of available properties.
Exclusive new data reveals rental prices across all dwelling types in the city increased 20 per cent over the last 12 months to June — the nation’s second-highest growth rate behind Geelong in Victoria.
PropTrack’s quarterly Rental Report paints a bleak outlook of mounting pressure as demand continues to outstrip supply, while existing tenants stay put rather than risk homelessness.
Mermaid Beach — otherwise known as Multimillionaire’s Row — was the state’s most expensive market, where tenants forked out a whopping $1,225 in weekly rent for houses.
Surfers Paradise, Clear Island Waters and Broadbeach Waters were also among Qld’s top ten priciest rental suburbs, each with a median of $1,100 or more.
This Mermaid Beach home is advertised to rent for $2,500 a week.
And rents were up from the Hinterland to the beaches, with annual growth of 48 per cent in Springbrook to a median of $675, and 44 per cent in Mermaid Beach.
Rent increased 33 per cent for houses in both Currumbin Valley and Surfers Paradise, where tenants paid $1,000 and $1,200 respectively.
For units, prices climbed 32 per cent in Bundall to $620, followed by Runaway Bay, Burleigh Waters and Palm Beach.
Grow and Co rental agency director Ben Jorgensen said rising interest rates would put further pressure on the rental market, with many landlords already “hedging their bets” by raising rents.
“Investors see that if they are on a variable rate, it’s only a matter of time before their repayments increase and they will have to rise to the market, so they are already putting the rents up, but also rents are going up simply because of the rate of competition for homes available,” Mr Jorgensen said.
The Southport-based agency had received a total of about 700 applications for the 35 properties they’d listed for rent so far this year.
“We hear all the time from tenants who are really worried about finding their next home.
“They turn up to an open home inspection and get so discouraged when there are 60 other people there that some of them just turn around and leave.
“We try to help people as much as we can, but the reality is there’s just not enough homes available to meet demand,” Mr Jorgensen said.
Surfers Paradise is one of the state’s most expensive rental markets. This house is advertised for $2,200 a week.
But there’s still hope for potential tenants, with regional price growth expected to slow as interstate migration drops back from its pandemic peak.
PropTrack director of economic research Cameron Kusher said some people who had moved to the Gold Coast in the past two years would return to the cities, while others would purchase a home.
“The rental market is currently extremely tight, with many people looking for rental properties at a time in which the supply remains insufficient. It appears unlikely that relief is on the way any time soon,” Mr Kusher said.
“The rental increases over the year have been particularly strong in regional markets.
“It’s a somewhat different story over the past quarter, with rental growth making a return in capital cities, while regional markets are showing signs of slowing rental price growth,” he said.
The total number of potential renters per listing was up 28 per cent year-on-year across all Australian capital cities in June, but down 6 per cent across combined regional markets.
Mr Kusher said the cautious return of investors to the marketplace was not yet enough to have a significant impact on supply.
Investors accounted for 35 per cent of all new lending in May 2022 — down from the peak of 46 per cent in April 2015.
“While more investors will alleviate the imbalance between demand and supply over time, it seems likely that the volume of stock for rent will remain insufficient over the near-term, creating more upward pressure on rental prices.”
Four of the state’s most expensive suburbs to rent a house are on the Gold Coast
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Real Estate Institute of Qld Gold Coast zone chair Andrew Henderson said demand for rental properties in lifestyle locations had eased with the end of lockdowns.
“Those who were going to have now made their move, although it’s a pretty well-worn path from Melbourne or Sydney to the Gold Coast so we can expect the city to continue to attract a slower flow of interstate migration,” Mr Henderson said.
The redevelopment of the coastal fringe had also reduced affordable rental stock as older unit blocks were replaced with expensive boutique apartments.
“While you don’t want to underdevelop those areas, it creates a very different dynamic when 1960s unit blocks are replaced by significantly more luxurious, larger accommodation which will rent for four times the price,” Mr Henderson said.
Luxury larger apartments have replaced more affordable multiresidential dwellings on the Coast
GC’S BIGGEST RENTAL PRICE HIKES
HOUSES
Springbrook 48%
Mermaid Beach 44%
Currumbin Valley 33%
Surfers Paradise 33%
Runaway Bay 33%
Paradise Point 28%
Bundall 28%
Gilston 28%
Biggera Waters 27%
Currumbin 27%
UNITS
Bundall 32%
Runaway Bay 27%
Burleigh Waters 26%
Palm Beach 23%
Benowa 23%
Miami 22%
Varsity Lakes 22%
Mermaid Beach 21%
Hope Island 21%
Main Beach 20%
QLD’S TOP 10 MOST EXPENSIVE RENTAL SUBURBS
Mermaid Beach (house) $1,225
Pullenvale (house) $1,200
Surfers Paradise (house) $1,200
Clear Island Waters (house) $1,200
Castaways Beach (house) $1,150
Samford Valley (house) $1,125
Broadbeach Waters (house) $1,100
Sunshine Beach (house) $1,100
Doonan (house) $1,100
Marcus Beach (house) $1,100
*source: PropTrack
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