The Gold Coast residential property market is showing positive signs. New data shows that vacancy rates moved into the healthy range for the first time in several years. This is from a January 30 media release in which Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella commented on what the change meant for owners:
"The data has shown that supply and demand in the rental market is fairly evenly matched in the southeast corner. When vacancy rates are within the healthy range it means landlords can secure tenants comfortably and it also means tenants have the opportunity to secure appropriate and suitable rental accommodation."
It's not just the Gold Coast and Surfers Paradise either, vacancies all over South East Queensland are performing well, revealing the strength of the property market here. With an eye to helping both investors and tenants react to these changes, we've had a closer look.
Since September 2013, the Gold Coast's residential rental market has been incredibly tight, with vacancies staying under the healthy range (2.5 per cent to 3.5 per cent). In December 2015 this trend worsened, with vacancies dropping to only 1.1 per cent and staying under 2 per cent for the following two years.
These numbers indicate that there was an excess of rental demand compared to supply, an imbalance that might brilliant for investors but could hurt tenants in our city. These past numbers are at levels so low that they're unsustainable, and a return to more normal rates is in the long term interests of everyone involved in the Gold Coast property market.
Happily the data from the December quarter 2016 shows that vacancy rates have increased by 0.8 per cent to 2.5 per cent – just within the range of what's considered healthy.
Those looking to rent property in the Gold Coast in the near future will be particularly happy about this change. It means that there are more properties available to choose from and that renters may be able to find a wider selection of properties that suit their needs.
It takes some of the power out of the landlords hands by giving renters more choice. This could have the effect of placing downwards pressure on the average rent in the area, meaning tenants may be more likely to find property at a bargain price.
While 2.5 per cent vacancies still suggests that the market is fairly tight, the increase is a promising sign for the future of renters in the Gold Coast.
Most property investors will see this change is a negative one. However, the fact is a more moderate vacancy rate ensures the long term prosperity of the market, instead of turning tenants off due to skyrocketing prices and a lack of properties to choose from.
While there's no need for landlords to worry, they may want to take measures to safeguard their properties income just in case. Hiring a professional property manager is the first step towards doing so, and will ensure that tenants are kept happy, and quickly replaced if they do leave.
For more insights into the Gold Coast property market, or to talk to one of our experienced property managers, get in touch with the team at your local Ray White Surfers Paradise branch today.