Gold Coast Rents Hit Record Highs, But Affordability Pockets Remain

Home rents on the Gold Coast have reached a record-high, but property analysts say Australia's most expensive rental market does have pockets of relative affordability.

The Gold Coast's median house rent rose to $950 per week in the June quarter, and units to $850, according to data published by property website Domain on Thursday.

A separate dataset from the REA Group's PropTrack showed the median asking rent on the Gold Coast went up to $890, following a 2.5 per cent increase in the three months to June.

The Gold Coast's strong rental growth is consistent with a nationwide trend, where combined capital city rents rose at their strongest pace in nearly two years.

Broadbeach Waters was the Gold Coast's most expensive suburb to rent a house in June with a median asking price of $1,500 per week, followed by Clear Island Waters, Bundall, Tallebudgera and Benowa.

Unit rentals were the costliest in the bustling Main Beach area, with a median value of $1,100, trailed by Benowa and Burleigh Heads at $900, Currumbin at $898 and Broadbeach at $895.

Domain's chief of research and economics Nicola Powell said it was not unusual for the Gold Coast's house and unit median rental value to be sitting neck and neck.

"Units are all about location. They're [in] prime, coastal locations or very inner-city locations, and that helps to push that price point up," she said.

Ms Powell said the factors driving the growth predated capital gains tax and negative gearing reforms announced in the May federal budget.

"Ultimately, market conditions are allowing those rent increases to be passed through," she said.

Gold Coast doesn't have 'single' market

However, Ms Powell said there was a "wide spectrum of price points" in rents across the broader Gold Coast region.

Experiencing rapid population growth, the northern end of the city saw the largest rate of rental growth in percentage terms in the 12 months to June, but it continued to be the Gold Coast's most affordable area for renters.

Pimpama was the cheapest suburb to rent a house having a median asking value of $743, with neighbouring Willow Vale closely behind at $750 and Labrador at $775.

Meanwhile unit rentals were cheapest in Nerang at $650, Ashmore at $685, and Labrador at $700.

"What's interesting is that reminder that we don't really have that one single rental market in the Gold Coast," Ms Powell said.

"If you're a tenant trying to secure a lease, looking for something more affordable, or you're in that negotiation of redoing your lease, make sure you do your market research because there's some suburbs across the Gold Coast that have seen really strong rates of growth but there's actually some suburbs that have either flatlined or seen a slight dip."

Peak body says affordable housing construction needed

Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella said the latest rental figures were "not surprising but significant".

She said persistent supply shortages and a disproportionate number of luxury new builds were driving up rental prices.

"We're seeing so much pressure being placed on the established housing market because the only things that are being constructed have very, very hefty price tags and they're out of reach for many Queenslanders," Ms Mercorella said.

The Gold Coast's rental market remains extremely tight with a vacancy rate of 1.1 per cent, according to REIQ data.

Ms Mercorella said a healthy vacancy rate — the percentage of all unoccupied rental properties advertised publicly on portals — would be between 2.6 and 3.5 per cent.

"When we see the vacancy rate sitting within that range, renters have more flexibility, there's a greater number of options, there's more housing available for them to choose from," she said.

"It means we're in a more balanced environment … rents tend to stabilise a lot more as well."

Ms Mercorella said the Gold Coast, like other parts of Queensland, needed more affordable housing to be built.