A message to our landlords: A Year-End Snapshot of the Thriving Gold Coast Real Estate Market

As the year draws to a close, we’d like to share some key insights into the current state of the rental market on the Gold Coast, Australia.

Firstly, the Gold Coast is experiencing rapid growth, with migration playing a significant role. Regional Queensland tops the list, contributing 29% of all migration, followed closely by New South Wales and overseas migrants at 27% each. Victoria follows at 10%. The migration is primarily observed in the age groups of 30 to 49-year-olds and those aged 75 and above.

Turning to price growth, the median house price in the Gold Coast local government area has surged to just under $1 million. Both detached houses and unit markets have seen remarkable annual growth rates of 8.8% and 7.9%, respectively, over the past five years.

Unsurprisingly, vacancies in the rental market are extremely tight. The current vacancy rates across various Gold Coast postcodes are generally under 1%, with the majority under 0.7%, which is lower than the national average of 1.06%.

Advertised rents have seen a substantial year-on-year increase, with Brisbane experiencing a 12.2% surge and regional Queensland seeing a 7.1% rise for the year ending September 2023. The Gold Coast falls somewhere in between these figures.

Regrettably, the Gold Coast has recently earned the title of Australia’s most unaffordable city for rental accommodation due to the consistent outstripping of rental demand over supply. The pressing need for more rental accommodation is evident.

Addressing concerns about the sustainability of higher rental amounts, it’s worth noting that the Reserve Bank Governor recently mentioned that renters and low-income households are better off than two years ago, despite inflation and rising rents. This is reflected in negligible rent arrears, thanks to strong employment and income growth.

Closing the year on a positive note, the rental market is stronger than ever. Demand, rents, and returns for property owners continue to rise. With property values growing at an average of over 7% annually and rental yields factored in, most owners are enjoying returns of 12% or more, reaching as high as 20% in some cases.

Shifting focus to the sales market, it remains robust, with signs of some easing, expectedly so. While 2024 might bring some economic turbulence, its impact on the real estate market is not anticipated to be significant.

In conclusion, the current conditions present an exceptionally favorable landscape for landlords. Amidst turbulence in the stock market and high-risk alternatives like cryptocurrencies, real estate stands out as a secure investment option. Looking ahead to 2024, we anticipate another excellent year for real estate.

We want to express our gratitude for the trust and faith you’ve placed in Ray White Surfers Paradise. Our dedicated team is passionate about delivering exceptional service and results to our landlords. Wishing you and your family Season’s Greetings and a prosperous New Year.