27 Feb Vacancy rates remain low on Sunshine Coast
The Sunshine Coast continues to defy the rental market trends being witnessed by other areas, with the Real Estate Institute of Qld classifying the region as “tight”.
According to their December quarterly report, the Gold Coast rose from 1.7 per cent to 4.38 per cent and inner Brisbane rose from 2.1 per cent to 4.0 percent – although the report noted that this decline has been a decade long trend in inner Brisbane for the December quarter which is followed by a fall “in the March quarter as the market returns to business as usual”.
Back on the Sunshine Coast we continue to see new homes and units being built, but it appears interstate migration to the area has contributed to the growing demand for rental properties, with some people even having to stay at local caravan parks until they can secure accommodation.
The report noted that the Sunshine Coast (consisting of both the Sunshine Coast LGA and Noosa LGA), “has tightened and is now firmly classified a tight rental market”, with the vacancy rate dropping from 2.4 per cent to 1.8 per cent.
As less stock becomes available, we can expect to see some upward pressure on rents if the situation doesn’t change soon.
Adding further pressure to the rental market on the Sunshine Coast is the continued rise in tourists and event participants. We are now a major event destination and as we continue to attract more people to the region the demand for short stay accommodation is also on the rise.
This all remains good news for property investors but before you start to run out and increase your rent remember you are better to have a good long term tenant who is paying a market rate you are happy with, than an ordinary tenant, who will leave you for another property as soon as more stock becomes available.