Agony of Renting in Robina
An article released last week gives us an insight into exactly how difficult things have become for tenants in and around the Greater Robina area.
The article with the headline, "Agony of Renting in Robina" discusses the fact that Robina has now been rated as the sixth toughest area in the country to be a renter.
The Gold Coast featured heavily in the Top 25 National list with Robina and the adjoining suburbs of Varsity Lakes, Mermaid Waters and Merrimac all being named amongst the top 25 suburbs in the country for rental pain.
The article illustrates just how far rental prices have been pushed up in our office postcode over the past three years in particular, however it is worth mentioning that we definitely witnessed an easing in rental conditions over the later months of 2023, a trend that has continued into early 2024.
The laws of supply and demand have dramatically pushed up rental prices in our area over recent years, however it is important for landlords to understand that the phenomenal rental growth that we have seen over recent years is now being muted by cost of living and affordability constraints on tenants.
As an example of this, we have listed nineteen new rental properties so far this month, just six have been leased to new tenants.
Further to this, rental open homes have clearly had a reduction in numbers and potential tenants are now looking to negotiate on price.
This all suggests that we may have hit a tipping point where rental affordability is pushing renters to other areas on the Gold Coast.
With days on market for available rentals in and around Robina now increasing, price reductions are often needed to secure a tenant.
In addition to our rental lead story we have also added the latest HTW valuers National Property Clock as we enter 2024 as well as the latest Capital city building approval statistics.
We start this week with the GCB article
AGONY OF RENTING IN ROBINA
WORST GOLD COAST SUBURBS FOR RENTAL PAIN
A new study has pinpointed Robina as one of the toughest places in Australia to be a renter.
Property analysis firm Suburbtrends rated the area of Robina East – an Australian Bureau of Statistics designation – as the sixth-worst area in the nation for rental pain.
Varsity Lakes, Mermaid Waters, Arundel and Merrimac also make the top 25 list, compiled by measuring rental availability and cost increases facing tenants.
Suburbtrends founder Kent Lardner said the “alarming findings” showed an “unprecedented level” of rental stress.
“(These suburbs) are among the hardest hit, where average rental increases are combined with extremely low vacancy rates, exacerbating the situation,” Mr Lardner said.
The percentage of household income allocated to rent was particularly high in Gold Coast suburbs, clocking in at 43 per cent in Robina, 44 per cent in Varsity Lakes and an eye-watering 57 per cent in Mermaid Waters.
All are above the 35 per cent level that Mr Lardner said was traditionally associated with financial strain.
“As we begin 2024, the Rental Pain Index serves as a crucial indicator of the hardships faced by renters across Australia,” he said.
“The data calls for urgent, multifaceted policy solutions to address the soaring rental costs and limited housing availability. It’s time to turn these insights into action.”
Data from SQM Research shows average weekly rents in the Gold Coast region, including western and hinterland areas, are $955 for houses and $755 for units.
On the northern Gold Coast, the average cost to rent a house is pegged at $1148. On the southern Gold Coast it is $1194.
Vacancy rates in the city are at a low 1.1 per cent.
According to Suburbtrends, the vacancy rate is even lower in worst-affected areas, at 0.27 per cent in Pimpama North and 0.42 per cent in Robina East.
Its report notes that the Gold Coast also has some of the most alarming figures for the amount of household income outlaid on rent.
“Queensland emerges as the most affected state, with the majority of the top 25 suburb groups (nationally) located there. Suburbs like Durack, Logan Central, and Deception Bay feature at the top of the list, all with an RPI of 100, indicating the maximum level of rental hardship,” the report states.
“These areas have witnessed significant average 12-month rental increases, ranging from 7 per cent to 15 per cent, coupled with high percentages of median household income dedicated to rent, reaching as high as 57 per cent in Mermaid Waters,” the report says.
1 Robina East
2 Varsity Lakes
3 Mermaid Waters
4 Arundel
5 Merrimac
6 Miami
7 Elanora
8 Pimpama North
9 Labrador
10 Carrara
Source: Suburbtrends
Please see below the HTW Valuers National Property Clock For Houses & Units as we enter 2024.
Please See below The latest ABS Monthly Capital City Annual Building approvals as at November 2023.
