Figures released last week by CoreLogic confirm a strong uplift of 6.6% in rent values over the year; this follows a decade of relatively subdued annual rent growth, averaging 1.8% since June 2011.
Regional lifestyle markets such as the Sunshine Coast and Gold Coast, are two of the areas that have experienced the highest price growth, driven by strong demand, outstripping supply; with weekly rents reaching record heights rivalling parts of inner-city Sydney and Canberra. In fact, the shortage of rentals on the Sunshine Coast have led to a growing number of people living in cars – something which would have been extremely hard to imagine ever happening here!
The Gold Coast and Sunshine Coast are now among two of the most expensive hubs in which to rent a home in the country after bearing the brunt of unprecedented interstate migration over the past three months. Vacancy rates have sunk as low as 0.2 per cent, and Sunshine Coast house rent prices have rocketed by up to $80 a week in key suburbs, with unit rents rising up to $40 per week.
Property experts have placed the historic growth spurt on the mass exodus from Australia’s major capitals – fuelled by the ongoing pandemic and ignited by the shift towards remote working, with hot spots, such as beachside suburbs on the Sunshine Coast sitting directly in the eye of the rental storm.
Domain senior research analyst Nicola Powell said that as a result, tenants were facing extreme competition with both coastal cities far outstripping Brisbane in median asking rent prices amid record-low vacancy rates.
The result of this, on the ground, is that prospective tenants are offering more (than the asking prices) because it’s so hard to find vacant property; and there is an increasing number of people in property limbo, as they’ve sold their property and haven’t bought yet, so need somewhere to live, and finding somewhere is very difficult.
On the upside, it’s great for investors, with outstanding returns and 100% occupancy rates.
If you are thinking of purchasing an investment property, here at Wright Place we can assist you to find a property that will generate optimum returns as well as strong capital growth.