Gold Coast rents just hit a record high - now officially the most expensive in Australia! With over 24 suburbs exceeding $1,000 a week and vacancy rates near 0%, renters are feeling the squeeze - and landlords are weighing how long the boom can last.
Click below to see the latest rent figures, suburb-by-suburb breakdown, and what it all means for Queensland property.
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Hi everybody - George Sourris, Empire Legal.
Today's topic: Gold Coast rents skyrocket - now officially the highest in Australia!
Gold Coast rents skyrocket - now officially the highest in Australia. The rental market on the Gold Coast is officially Australia's most intense, taking the top position as most expensive to rent for a house or unit, with 24 of its suburbs costing over $1,000 a week. This is causing real pressure for renters, businesses, and anyone thinking of property in Queensland.
Thanks to Domain for providing the data for today's blog topic. Recent rental figures provided by Domain reveal the Gold Coast's median weekly rent for a house is $900, which is $120 more than Sydney's $780 and $240 more than Brisbane $660 weekly rental amount. Gold Coast is the sixth largest city in Australia and claims 8 out of the top 10 most expensive suburbs to rent in the country! Yep, you read that correctly (crazy, right?).
Vacancy rates on the Gold Coast are less than 1%. Over the past five years, the fastest rental growth comes from Paradise Point, where house rents soared 117.7%, to over $1,350 a week. In Paradise Point, vacancies are almost non-existent at a rate of less than 0.2%. Palm Beach, Bundall and Jacob's Well rents also doubled over this same period.
If you want to rent a house in Tallebudgera, you need $1,400 a week. Broadbeach Waters and Paradise Point follow next with $1,350 a week, and then Palm Beach at $1,300.
Why are rents climbing so steeply?
Several key factors are driving this rental wave.
Supply and demand mismatch. Vacancy rates on the Gold Coast have been extremely low, meaning fewer rental homes available relative to the number of renters looking.
Inflow of people and lifestyle shift. The region's beaches, climate and lifestyle are attracting strong interest from interstate movers and secondary home seekers, putting extra pressure on the rental stock.
Investor and landlord cost pressures. Rising interest rates and costs for landlords are partly being passed on through higher rents.
Regional rent surge leading national growth. While some major capitals rental growth is easing, regions like the Gold Coast are still posting very high increases.
The impact of renters and the community. The effects are tangible and honestly, quite worrying. Many renters are spending a large portion of their income on rent compared to previous years. For example, the typical share of income going to rent climbed from about 1/3, to over 40% now, in some cases. Some essential workers and long-term locals are being priced out of the region, moving further out or being forced into shared accommodation.
Lifestyle changes. People are sharing houses with more flatmates or choosing suburbs further from the coast to remain affordable.
So what does this mean for landlords and property holders in Queensland?
If you're a landlord, property owner or considering entering the rental market, here are some implications. With high rents on the Gold Coast, the income potential is strong, but so the risks around tenant turnover, affordability, fatigue, and regulatory change. It may pay to analyse how long the rental upswing can continue, especially if demand catches up or demand softens.
For those looking at properties in the region, the high rents can make an investment more attractive, but also means you'll need to factor in how sustainable those rent levels are.
Can this continue forever?
What the future could hold while the rise has been steep? Some indicators suggest things may stabilise.
Some analysts expect a softening or plateauing of rental growth, as renters budgets get stretched. If more supply comes into the market, so new builds or more sharing arrangements, it could help ease pressure.
And policy changes, so rent increase caps, better tenant protections, more social housing might also influence the trajectory. Also, Gold Coast Council is cracking down on Airbnb that's unauthorised.
So you have to specifically have a material change of use on your property to be allowed to short-term stay lease a property. If people are caught doing that illegally, the council will pursue them, which means they'll turn into normal long-term property rents.
That means that Airbnb becomes a traditional rental, so rented out for a six, 12 month period, which means fixing the supply problem very slowly. We've actually done a blog on this in the past, here is the link.
Wrapping up.
The Gold Coast rental market is at a critical point. Rents are amongst the highest in the country and the consequences are being felt by tenants, landlords, and the broader community. Whether you're renting, owning, or investing, understanding what's driving this surge and where things might head is essential.
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Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Brisbane, Queensland, Australia.
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