According to the latest vacancy data issued by the Real Estate Institute of Queensland (REIQ), COVID-19 saw the Gold Coast rental market inundated with properties during the first half of 2020, with vacancy rates topping out at around 10% in May.
The article explains however, that the Gold Coast has now staged a notable recovery, recording the tightest rental market in Queensland.
Indeed, the entire state of Queensland is experiencing record low levels of rental stock, as revealed in the REIQ’s July – September figures.
Typically, a reasonable rental inventory range sits around 2.5-3.5%, with a tight rental inventory range considered to fall between 0-2.5%.
The pandemic has seen significant changes to the way people elect to work and live, and South-East Queensland appears to be benefitting as many have voted with their feet over recent months, now calling Queensland home.
Southern localities of the Gold Coast have recorded some of the lowest vacancy rates of all, with Palm Beach at 0.1%, Burleigh Heads at 0.4% and Coolangatta at 0.2%, rental stock is experiencing extreme demand.
CEO of the REIQ, Antonia Mercorella, said “As more people choose to make Queensland their home, it’s imperative we act now to support and safeguard the rental housing needs of current and future generations.”
“Over 36% of Queensland’s population rent (1.2 million) and 90% of that housing is provided by private owners. Given the current and future rental needs of the community, it’s critical we continue to attract property investors to improve supply and keep pace with demand and maintain rental affordability.”
In the current circumstances, the size and function of Queensland’s investor market has never been of greater consequence.
The Australian Bureau of Statistics’ (ABS) latest data signals good news, indicating that property investors’ new loan commitments have increased by 20.3% over the last four months.
Similarly, the Property Investment Professionals of Australia (PIPA) Annual Property Investor Sentiment Survey 2020 reveals 67% of investors still intend to buy property.
Rating the highest for investment prospects (36%), was Queensland.
Understandable when consumer confidence has steadily risen to 98.25 points over four consecutive months, on the back of state migration figures totalling almost 30,000 over the past six months, and a 3.7% rise in new jobs throughout the state.