Real Estate

Why rental rates on the Gold Coast keep climbing

Written by The ReReport
As seen in the Source link, written by couriermail.com.au on 2019-03-09 04:21:14

New data shows the median weekly rent on the Gold Coast is going up.

TENANTS are facing rental rate hikes despite having more properties available to them on the Gold Coast in almost a decade.

New data revealed in CoreLogic’s Quarterly Regional Market Update, released today, shows advertised median weekly rents have jumped 5.7 per cent for a house and 3.7 per cent for a unit in the past year.

“Rental growth across the region has increased over the past year, with the advertised median weekly rental rate up $30 per week for houses and $15 per week for units,” the report said.

The Gold Coast’s median weekly rental rate in the December quarter was $560 for a house and $425 for a unit.

Aerial view of Surfers Paradise on Queensland

Migration and recent completition of several developments is believed to be responsible for rent going up.

It comes a week after Real Estate Institute of Queensland figures showed the number of rental properties available on the Coast was at a seven-year high.

CoreLogic research analyst Cameron Kusher said migration to the Gold Coast was behind the increase as many people rented before buying to determine where they liked to live.

“They’re coming up and renting first so they’re creating rental market pressure,” he said.

“I don’t think it’s a particularly affordable market at this point.

“The rent (tenants) are paying on the Gold Coast are higher than those in Brisbane.”

MORE NEWS: Would you live in a display home?

MORE NEWS: Tree house snapped up for almost $2m

Mr Kusher expected rental rates to drop in the next 12 months as a result of the Coast’s increased number of properties available to tenants.

REIQ Gold Coast zone chairman Andrew Henderson said new developments were also responsible for the rate hikes.

He said not only had they added more properties to the rent pool but they bumped up the median prices as many of them were prestige offerings.

“There’s been a lot of new development that’s finished in the last quarter,” he said.

“That would be part of it.”

However, he did not think the rental market was unaffordable.

“We did see an increase in vacancies last quarter so I think we’re heading more towards a balanced market,” Mr Henderson said.

Latest data from the Residential Tenancies Authority shows suburbs in the 4217 postcode, including Benowa, Bundall, Main Beach, Sorrento and Surfers Paradise, were the most expensive areas to rent, with $880 the median price per week for a four-bedroom house.

The cheapest place to rent was the 4211 postcode, which included Carrara, Gaven and Nerang, with a $220 median price per week for a one-bedroom unit.

MOST EXPENSIVE RENTS

$880: Four-bedroom house in 4217.

$660: Three-bedroom houses in 4218.

$625: Three-bedroom units in 4223/4224.

$500: Two-bedroom houses in 4221/4223.

$465: Two-bedroom units in 4227.

$390: One-bedroom units in 4226 postcode.

CHEAPEST RENTS

$445: Four-bedroom house in 4208.

$400: Three-bedroom house in 4209.

$355: Two-bedroom house in 4209.

$380: Three-bedroom units in 4208.

$325: Two-bedroom units in 4210.

$220: One-bedrooms units in 4211.

(Source: Residential Tenancies Authority)