The Sunshine Coast property boom has led to a severe shortage of rental property, with fewer houses on the market creating more intense competition and rising rents. Vacancy rates are at record lows across the state; official figures are now around 0.5 per cent or lower, but it has hit zero per cent in some areas of the Coast – forcing prospective tenants to go on waiting lists.
Supply is simply not keeping up with demand. Why? Between about March and October last year, investors stopped entering the market due to the uncertainty caused by COVID. This led to a slowdown in the construction of investment property destined for the rental market and the scarcity is catching up with us.
Now that the economic outlook is more positive, however, investors are buying in and building again. When these properties come onto the market, the supply will increase and rents should stabilise. Until then, market forces will continue to push rental prices higher. The unknown factor, of course, is how much more demand there will be for housing on the Sunshine Coast, given it’s the most popular destination for interstate migration.
To help meet the unprecedented demand, some developers are releasing land in the new housing estates years ahead of schedule. Stockland, for instance, recently opened 56 new blocks in its Aura development, located in Caloundra South. Despite the current shortage, Dwyer Property Investments has been able to secure some excellent land for our investors in 2021.
For more information, contact Jason Dwyer from Dwyer Property Investments on 1800 088 437.