What an extraordinary market today .. gone are all the traditional movements of rental values and vacancy rates .. today's incredibly buoyant market is one I have never experienced in 31 years.
Lets take a moment to check out a few statistics.
* I have no vacant property
* I have 1 property becoming available in 3 weeks which the tenant has now asked to stay because she is unable to find anything else
* All 161 properties are fully tenanted at an average rent of $595.00 per week
* Annual rental return is just slightly under $5,000,000
* Average sales value of houses is approx $657,000
* Average sales value of units is approx $450,000
The demand of today is far outweighing the supply for the first time ever during the quietest months of the year - June / July / August with rental values far exceeding owner expectations. I was referred to a property recently in Bokarina Beach. On researching the market I found a directly comparable property had been rented by a local agent for $620.00 per week in January 2020. I have just rented my property just a few houses further down the same street for $750.00 per week. Thats an increase in 9 months of just over 20%.
Prior to my zero vacancy rate , I was witnessing ..
* 42 groups of potential tenants through a 4 bedroom home in Maroochydore ( appraised by a local agent for $520.00 per week - rented by Karen Stehr Property at $550.00 per week)
* 38 groups of potential tenants through a 2 bedroom villa in Buderim ( appraised by a local agent at $320.00 per week - rented by Karen Stehr Property at $380.00 per week)
* 19 groups of potential tenants through a 3 bedroom townhouse in Mooloolaba previously rented for $450.00 per week - rented by Karen Stehr Property at $470.00 per week.
Why? my personal opinion is the affect COVID has had on the rental market. A large number of landlords have moved into their own property in fear that a tenant might not be able to pay rent resulting in an owner stuck with a tenant in place till 30th September 2020 not paying rent. A large number of people have moved to the Coast prior to closures to escape HOTSPOT areas where COVID cases are in abundance and finally our Sunshine Coast residents who entered into lockdown earlier in the year were enjoying the uplifting of regulations in July encouraging Queenslanders to move within Queensland.
With a large number of quality tenants actually waiting for me to try to secure them a rental property, this market is certainly consistent with the boom back in 2003 / 2004.
I have a lovely older couple with 2 small dogs seeking a quality property up to the value of $1500 per week around the end of October time frame.
I have a group of 4 tradesmen, current great tenants of Karen Stehr Property, looking for a 4 - 5 bedroom home up to $850.00 per week around mid September time frame
I have personal friends of mine who have applied for 22 properties and have not been accepted for any. I have current tenants in property who have applied for 9 properties and have not been accepted simply due to the sheer amount of people applying.
Lets hope this does not turn into a severe housing shortage long term and it is a wave of COVID affected activity soon to settle.
If you would like to chat about today's rental market, please do not hesitate to give me a call.
PRINCIPAL - KAREN STEHR PROPERTY PTY LTD