Twenty-seventeen is proving to be heaven for landlords but much harder for tenants. We are seeing the highest demand for rentals in almost two decades here on the Tweed and southern Gold Coast.
I haven’t witnessed a market like it since the construction of the $380 million Yelgun Bypass around the Year 2000, when workers on that massive infrastructure project created a huge demand for rental properties across the region.
This time around, the demand is being driven by the general upsurge of employment on the Gold Coast as development takes off and the city prepares to host the 2018 Commonwealth Games.
These jobs have also attracted workers back to the Gold Coast from the mining sector as the resources boom continues to cool.
The problem is, demand is now at a level where we are seeing up to 100 prospective tenants turning up to look at one rental property inspection.
And while the wider Gold Coast’s rental vacancy rate has recently eased to 2.4 per cent – with 3 per cent reflecting a market in equilibrium – the rate across the Tweed and southern Gold Coast is sitting somewhere between 1 and 2 per cent, which is extremely tight.
The supply side of the equation is adding heat to the market with very little new housing and apartment stock being delivered across the area.
It’s no surprise then, that investors are pouncing on the area’s apartments and houses as they record capital growth of between 4 and 10 per cent and returns ranging from 4.3 to 5.3 per cent, according to PRDnationwide Research.
We’re seeing growth in rents across the board, in some cases double-digit rises. The most compelling increase being for one-bedroom apartments on the Tweed, which have jumped by almost 20 per cent.
These smaller units really weren’t on tenant radars in the past, but they have risen in popularity as people run out of other options.
So, prospective tenants need to be ready to act quickly as rentals continue to be red hot property.