Sunshine Coast Rental Market Update
Good evening ..
Time and time again I am asked whether I think the rental / sales market on the Sunshine Coast will return to a more realistic value and pandemic created inflated prices will begin to settle back to normality.
In my opinion, this would greatly depend on whether the huge drive of people moving to the Coast escaping corona virus hot spots decreases. Our roads are at capacity, housing, amenities .. it seems South East Queensland is the place to be !
With the temporary supplement of JobSeeker payments in Australia set to finish at the end of March 2021 .. I would expect this may also have an impact on the rental housing market as we may see tenants no longer being able to afford the higher rents. The welfare reduction could greatly disrupt housing situations for many.
JobSeeker was a temporary boost to new and existing recipients of welfare schemes in response to the onset of COVID-19. With its removal, individuals may suffer financially, choosing to sell their property, resulting in an increase in supply or tenants no longer able to afford rent may result in an increase in rental property becoming available at lower rates. This may also influence the influx of cashed up buyers / tenants moving to the Coast, turning the tables on the current high demand low supply market.
However, as we all know, housing market momentum has increased from September to January, amid the reduction in the JobSeeker supplement. Between the end of September and January, the CoreLogic national home value index rose 3.2%, and rental values increased 2.5%. Clearly, our beautiful pocket of the world was due for a rental value shuffle upwards, however being in the middle of a pandemic has certainly magnified the increases. The highest increase in rental value I have personally introduced has been 22%, but overall, increases across my portfolio have averaged 9 to 12%.
Interesting, unchartered times ahead !
PRINCIPAL - KAREN STEHR PROPERTY PTY LTD