Clovelly, Middle Cove, Surfers Paradise: Where rent has increased the most during the past year
Rents in beachside suburbs of Sydney and the Gold Coast have risen by more than 40 percent in a year.
New PropTrack data showed weekly increases of more than $600 in some zip codes.
The return of international students and the massive shift to Airbnb has reduced vacancy rates to as little as 1 percent in some cities, impacting both home and unit rents.
When it came to renting a house, Clovelly in Sydney’s eastern suburbs had the biggest jump from 46.5 percent or $633 to a midpoint of $1,995 in the year to February, up from $1,362.
Middle Cove on Sydney’s lower north shore saw rents rise 44.7 percent or $525 to $1,700, up from $1,175.
When it came to renting a house, Clovelly (pictured) in Sydney’s eastern suburbs had the biggest jump from 46.5 percent or $633 to a midpoint of $1,995, up from $1,362
In Sydney Harbor, Rose Bay in the eastern suburbs saw rents rise 42.9 percent or $600 to $2,000, up from $1,400.
The Gold Coast also became more expensive for renters, with Paradise Point rents rising 50 percent or $425 to $1,275, up from $850.
In nearby Surfers Paradise, rents rose 41.1 percent or $430 to $1,475, up from $1,045.
A short drive away, Clear Island Waters, a channel suburb, saw rents rise 40 percent or $400 to $1,400, from $1,000.
The Gold Coast had three suburbs in the top 10 for rent increases, with the other seven in Sydney.
Both areas have a tight rental vacancy rate of 1.3 percent.
Louis Christopher, general manager of SQM Research, said landlords are now listing homes on Airbnb and Stayz to take advantage of tight rental vacancies, reducing the supply of available inventory for long-term leases.
“You will see there now that there are more properties available in the short-term rental market than in the long-term rental market in Brisbane city,” he told Daily Mail Australia.
You will be shocked by the numbers. This is crazy. There’s been a huge shift toward short-term rentals on standard suburban stock, your standard three-bedroom house.”
The Gold Coast also became more expensive for renters. At Surfers Paradise (pictured from Currumbin Alley beach), rents rose 41.1 percent or $430 to $1,475, up from $1,045
Demand for short-term leases had surged since Australia reopened to international students in late 2021, shortly before foreign tourists were allowed back in.
“That demand would come not only from tenants, but from overnight business people, vacationers, university students or anyone who just needs a place to live at short notice,” said Mr. Christopher.
The stronger increases in apartment rents occurred in regional areas north of Sydney.
Soldiers Point in Port Stephens saw weekly rents rise 42.1 percent or $163 to $550, up from $387.
Glendale, a suburb of Newcastle, experienced a 50 percent rent increase, with the rent increase going from $150 to $450, instead of $300.
Outer north Brisbane had one entry, with the Bribie Island suburb of Banksia Beach, in the Moreton Bay area, rising 35.6 percent or $160 to $610, up from $450.
Sydney had seven spots in the top 10 for rent increases, with the New South Wales Hunter region holding two positions and Brisbane holding one.
In South Granville, western Sydney, the median apartment rent increased 58.2 percent or $163 to $443, up from $280 – making it the suburb with the largest percentage increase from a lower base.