Queensland’s second-largest city is expected to see property prices experience double-digit growth this year due to significant “rental famine”, according to one industry commentator.
Troy Gunasekera, national spokesperson for Property Club, said there is a 0 per cent vacancy rate in the area.
He said that advertised properties attract “at least” 10 applications, and that most are leased immediately to “quality tenants”.
“This is pushing up weekly rents, with rent reviews now increasing between 5 per cent and 10 per cent when a property is leased to a new tenant.
“The rental famine on the Gold Coast is now feeding into higher property prices, with the median price of a home on the Gold Coast rising by 8 per cent during the past year.”
Mr Gunasekera said that current trends indicate that the median price of a home on the Gold Coast will be “at least” 10 per cent higher during 2018.
“We have a classic case of demand outstripping supply leading to rising rents and increased property values — a trend that has been very apparent in the Sydney and Melbourne markets over the past three years.
“The supply of new properties in the Gold Coast has been declining over the past five years due to slump on housing construction. At the same time, residential demand for housing is now rising due to increasing migration to the Gold Coast, which is in addition to a major recovery in the tourism sector.
“The tourism sector will be given a further major international boost during 2018 when the Gold Coast host the Commonwealth Games.”
Mr Gunasekera said that properties on the Gold Coast are still “highly affordable” compared to Sydney and Melbourne, but he warned investors to exercise caution when buying in the area.