A significant “rental famine” in Queensland’s second-largest city will result in double-digit capital growth for Gold Coast property owners, according to one industry commentator.
Troy Gunasekera, national spokesperson for Property Club, said that among its members who collectively own “several hundred” properties, there is a 0 per cent vacancy rate in the area.
He said that advertised properties attract “at least” 10 applications, and that most are leased immediately to “quality tenants”.
“This is pushing up weekly rents, with rent reviews now increasing between 5 per cent and 10 per cent when a property is leased to a new tenant.
“The rental famine on the Gold Coast is now feeding into higher property prices, with the median price of a home on the Gold Coast rising by 8 per cent during the past year.”
Mr Gunasekera said that current trends indicate that the median price of a home on the Gold Coast will be “at least” 10 per cent higher during 2018.
“We have a classic case of demand outstripping supply leading to rising rents and increased property values — a trend that has been very apparent in the Sydney and Melbourne markets over the past three years.
“The supply of new properties in the Gold Coast has been declining over the past five years due to slump on housing construction. At the same time, residential demand for housing is now rising due to increasing migration to the Gold Coast, which is in addition to a major recovery in the tourism sector.
“The tourism sector will be given a further major international boost during 2018 when the Gold Coast host the Commonwealth Games.”
Mr Gunasekera said that properties on the Gold Coast are still “highly affordable” compared to Sydney and Melbourne, but he warned investors to exercise caution when buying in the area.
Excerpt from Real Estate Business 10 January 2018
The Queensland rental market is set for a significant shake-up, and as a property investor, it’s crucial to stay ahead of the curve. The state's new minimum housing standards, which began taking effect in September 2023, are more than just a regulatory update—they represent a shift in the expectations tenants will...
Mould, it’s the unwelcome guest no one wants in their home. It’s unsightly, potentially hazardous to your health, and dealing with it can be a real headache. But when mould creeps into a rental property, the big question arises: Who’s responsible for cleaning it up, the tenant or the landlord? The answer isn’t...
When managing your mortgage as an Australian property investor, understanding the benefits of offset accounts and redraw facilities can greatly enhance your financial efficiency. Both tools offer strategic ways to reduce the interest you pay and accelerate your mortgage repayment, but they function differently and...
Our mission is to help the average Australian learn the property market dynamics and discover the amazing opportunities that exist in real estate.