Burst of Apartments Bolsters Rental Stock
June 23 2023
Tenants on the hunt for a new place to live may find success in the apartment sector, where there has been an influx of fresh rental listings.
Kollosche’s prestige leasing department has recorded a spike in the number of apartments being offered for long-term lease, with a number of new listings priced between $850 and $2,500 a week coming to market in suburbs across the Gold Coast.
Head of property management Melissa Baker says many factors can affect the level and type of stock entering the rental pool, however, stricter rules around Airbnb-style lets and rolling interest rate rises since April 2022 have prompted more landlords to consider longer leases.
This has led to a higher number of apartments, traditionally used only for holiday or short-term lets, become available to those seeking a longer-term rental.
“The Gold Coast is a tourist destination and has a very transient population,” Melissa says.
“The current economic climate is impacting investor loans. Many landlords feel more secure knowing that they have a stable income stream to cover any potential further increases to their mortgages, rather than rely on income from a more sporadic holiday market.
“It’s the consistency of knowing what is coming.”
An increase in the number of people undertaking international travel is also contributing to the bump in listings for lease.
“For the past few years, and because of Covid, the Gold Coast has been the destination of choice for a holiday, but now that people can travel anywhere again, many are heading overseas,” Melissa says.
“Rather than leave their Gold Coast assets empty, apartment owners are choosing to lease them, with three, six and twelve month leases all popular options.”
New Projects Bring Opportunity
Apartments, as an asset class, are popular with both prospective property buyers and future tenants.
In April, Core Logic reported that apartments had surpassed houses on price growth for the first time in decades, recording an annual median rise of 16.3 per cent in the 12 months to March, compared with 10.9 per cent for freestanding dwellings.
Melissa says apartments can offer a higher level of safety, less maintenance, and the bonus of off-street parking in premium locations. Newer projects have the added attraction of resort-style amenities, including pools, gyms, wellness centres and recreational spaces.
Tenants will be the first to enjoy luxury finishes in a prime location, minutes’ walk from amenities and beaches, and have access to a host of additional recreational facilities, including a 20m pool, private indoor and outdoor entertaining areas, and a gym.