The Gold Coast’s vacancy rate has climbed to its highest level since the onset of the pandemic, offering some relief for renters, although conditions remain firmly in the tight range.

REIQ data showed the Gold Coast’s vacancy rate to be 1.5 per cent for the June quarter, which is still well below the 2.6 per cent to 3.5 per cent range considered “healthy”.

Kollosche Property Management Operations Manager Ashlee Gegg said while the data was positive, it had not fundamentally changed market conditions for renters.

“Many tenants have hit a ceiling on what they’re willing or able to pay in rent, even when supply is tight. This has led to a change in tenant behaviour, reflected in a rise in co-tenancy agreements and break-lease turnover as renters look for somewhere more affordable to live.”

Investor activity has also weakened amid Federal Government changes to negative gearing and capital gains tax, raising concerns about the future flow of rental stock.

Mrs Gegg said the pull-back in investor activity was reducing a traditional source of rental supply at a time when the market needed more stock.

Broadbeach Waters is currently the most expensive suburb in which to rent a house, according to RP Data, with a median asking rent of $1,500 a week. It is followed by Clear Island Waters, Bonogin, Mermaid Beach and Hope Island, where the median is above $1,400 a week driven by properties within gated estates.

Unit rents are generally lower but outperform houses on yield, with the highest rents currently being achieved in Hollywell at $970 a week, followed by Main Beach at $908, Currumbin at $900, Benowa at $878 and Hope Island at $875 a week.

“When it comes to units, location is a major factor,” Mrs Gegg said. “The suburbs topping that list are prime coastal or tightly held inner-city pockets, and scarcity pushes the price point up, while more affordable options are generally found further inland and in the northern parts of the region.”

She said the spread highlights how the Gold Coast is not a single, uniform rental market, with different price points attracting different tenant groups and levels of competition.

Affordable and mid-range properties are typically under the greatest pressure, with renters facing fewer options and greater urgency to secure a home.

“When you lose a property renting for less than $1,000 a week out of the market it has a significant impact because demand is particularly strong in that part of the market.

“At the higher end, the pool of prospective tenants is smaller, meaning presentation, pricing and the quality of the property become more important.”

The northern Gold Coast continues to offer some of the region’s more affordable rental options, but growing demand for lower-cost accommodation is placing increasing pressure on rents in the area.

Overall, Ms Gegg said the market remained tilted firmly in landlords’ favour and any meaningful improvement for renters would depend on whether new supply increased enough to ease pressure on existing rental stock.

“Until construction ramps up, tenants in the affordable and mid-range brackets are still going to feel this the most,” she said.

If you are seeking to rent or lease a property on the Gold Coast, reach out to Kollosche’s experienced property management team for assistance.