G Developments is a construction that builds new Torrens Title duplexes/semis across NSW and QLD that look like one home from the outside but in fact are 2 residences and attract a dual income, making them very attractive to investors. Hundreds of homes have been built already to satisfied home owners/investors across Queensland and NSW

What appears to be one dwelling is actually two separate homes with minimal outgoings, only one set of rates and no body corporate fees, plus being new, all the benefits of depreciation and  capital growth.

These dual dwelling house and land packages are fully council approved, they can be rented individually, offering great rental returns, in excess of 6% or even 7% yield for an investor in some areas. The homes are also suitable for owner occupiers and even first home buyers. There is a fire rated dividing wall separating the two living areas, and the extra soundproofing ensures each occupant’s privacy. Separate water and electricity meters ensure that each tenancy can be easily managed, separately if required, by an agent.

The two rental incomes make all the homes positive cash-flow.

Buying the land  and home in the right location at the right price is paramount to successful investing and especially receiving a positive cash-flow from the property from day one and subsequent future capital growth.

Depending on your budget and preferred location I am sure we have something that will interest you. Please let us know if you have any preference for areas and we will forward you some more detailed information.

Currently, we have a number of Dual Income Properties in the following areas in NSW – Morriseset, Warnervale, Chrisholm, Farley, Greta, Cameron Park, Edgeworth, Thirlmere and in Queensland in the following areas Burpengary, Park Ridge, Burrum Heads, Maryborough, Point Vernon, Toogoom and Torquay.

The Cliftleigh area halfway between Cessnock and Maitland is a current hotspot with our dual income house and land packages now selling quickly in the next stage release in August 2023

The rental guarantee covers S/E QLD currently with NSW commencing shortly after the appointment of an agent and this will be advises as soon as it occurs.

With this great example of the market appraisal on Thornton NSW 2322 – Strata Title Duplex, just shows what a great investment these Dual Key Properties are.

With an entry point of $40,000 -$70,000 in cash or equity we can have you into a cash flow positive property generating up to $210 per week gross before the end of this financial year PLUS all the tax benefits of a new property such as depreciation and future capital growth

If you have any more questions or would like further information on plans on any houses in the above locations please feel free to email us today.

• Year-on-year, unit prices rose by almost 7%.
• Units are practically half the price of houses in Brisbane.
• Noosa was the most expensive property market in Queensland.

As new quarterly data shows, the sun isn’t going down on Queensland’s property market despite high interest rates and uncertainty in the economy.

The Real Estate Institute of Queensland (REIQ) released its quarterly median sales results for the Sunshine State today. Median house prices jumped 4.62% year-on-year.

The data showed overall Queensland property is growing sustainably, contrary to commentary that prices will go ‘belly up’, said REIQ CEO Antonia Mercorella.

“The dust has settled and we’re back to a much more stable sales market, with steady growth for owners and more time for buyers,” she said.

The growth of units is outpacing house growth in Greater Brisbane and the tourism centres in many of the state’s major markets.

Queensland’s median unit price rose 3% for the June quarter, while the year-on-year number jumped 6.91%.

“It’s no surprise buyers are looking to apartments to escape the rental market and get onto the housing ladder,” said Mercorella.

“The price gap between houses and units in Brisbane has never been bigger, with units presenting a relative ‘bargain’ entry point.”

The Olympics and migration will keep driving the market

With the Olympics coming up, immigration to the southeast corner will continue to be a primary driver for property growth.

Although these results are surprising given rising interest rates, Queensland’s market is boosted by population growth and a lack of listings.

House listings dropped by 18.8% statewide, with almost every major market in Queensland showing a double-digit drop.

Listing volume dropped 17.7% over the year, offering little comfort.

“It’s slim pickings for buyers looking to buy in Florida, which creates competition and puts upward pressure on prices.

However, buyers have gained some time, with a typical time to sell a house extending out to 29 days from a year ago, and for units it’s now 25 days, which is closer to a normal campaign.

Now that FOMO (fear of missing out) has turned into FOMM (fear of making a mistake), conditional contracts are back in vogue.

Our units are strong across Brisbane and the region

Statewide, the median house price was $650,000, and Brisbane’s was $985,000, back below $1 million.

Statewide, the median unit price was $495,000, and Brisbane hit a new record of $510,000.

Bundaberg and Toowoomba were standouts in regional Queensland.

The Gold Coast and Brisbane were the strongest unit markets, with 2,550 and 1,532 sales, respectively.

The most expensive unit market was Noosa, with a median price of $1,052,500 for the quarter, followed by Gold Coast ($645,000) and Sunshine Coast ($615,000). Brisbane ranked fourth with a median price of $528,000.

Markets went backward in some places, though.

House prices in Queensland are up

For the quarter, Noosa had the most expensive house prices in Queensland, with a median house price of $1.3 million. Brisbane came in at $1.02 million, Gold Coast at $985,000, and Sunshine Coast at $936,000.

Across the quarter, Brisbane (2,774), Gold Coast (1,780), and Moreton Bay (1,530) had the most house sales, followed by Logan (1,177) and Sunshine Coast (1,056).

Brisbane (4.62%), Redland (4.58%), and Noosa (4%), had the best quarterly growth.

The top five double-digit house market performers were Bundaberg (15.19%), Ipswich (11.34%), Toowoomba (10.75%), Fraser Coast (10.71%), and Rockhampton (10.61%).

According to SQM Research, the Reserve Bank’s decision to maintain interest rates at 4.1 percent might lead to a rebound in buying activity over spring, fueling sharper price increases.

Louis Christopher, managing director of SQM Research, believes buyer demand will increase with another pause in interest rates.

“Buyers who waited on the sidelines for prices to fall have realized that the market has bolted, and are now responding by buying.

Considering that interest rates are likely to remain on hold for some time, I expect this trend to continue. I expect continued price increases through at least the end of the year, and the odds of a strong start to 2024 in terms of price increases are increasing.

There has been a surge in new listings across the country’s biggest housing markets as a result of rising house prices and stabilising interest rates.

The number of new homes on the market in Sydney last month increased by 10.5% to 13,780, the highest number since records began in August.

Canberra, which had a 22.2 per cent increase in fresh stock, recorded the largest increase among capital cities as well. New listings in Melbourne rose by 12.6 per cent to 15,075, the highest level since 2016.

“It is evident that vendors are feeling more confident than last year, which, I believe, can be attributed to a combination of better than expected buyer activity during the course of 2023 and the increasing likelihood that the RBA will reach its terminal rate,” Mr Christopher stated.

According to me, there is a rise in demand due to strong population growth and buyers’ fear of missing out. The result is an increase in asking prices, so vendors are responding to the stronger market conditions and are more willing to list their properties.”

In most capital cities, new listings rose over the month, with the exception of Brisbane and Darwin, which saw a drop of 0.6 percent and 14.2 percent, respectively.

According to Mr Christopher, so far, the sharp increase in new inventory has been mostly absorbed by buyers, as evidenced by the falling number of total listings and old inventory.

There was a decline of 1.9 percent in total listings nationwide compared to a year ago, with Sydney and Melbourne falling by 6.5 percent and 4.9 percent, respectively.

In addition, the number of properties that have been on the market for more than six months declined across the capital cities during the month, with the exception of Hobart, where it rose by 3.7%.

According to Mr Christopher, total listings are still lower than long-term averages. “We recorded 224,530 dwellings for sale nationwide in August, which is lower than the long-term average of around 240,000 properties.”

Propertybuyer’s chief executive, Rich Harvey, said it was likely that vendors were selling to upgrade or downsize as well as expatriates returning home.

The low inventory levels during winter have certainly resulted in pent-up demand from home buyers.

In the past month, the number of buyers looking for properties in Sydney has increased, according to BresicWhitney chief executive Thomas McGlynn.

In recent months, we have observed an increase in the number of buyers actively searching for properties, either through open houses or online.

The website traffic to our website recorded its largest month ever, so I believe that the demand is keeping pace with the extra stock, which is surprising considering the sharp rise in interest rates and living expenses.”

The number of properties selling under distressed conditions has declined by 18.9 percent compared to a year ago as fears of mass defaults on fixed mortgages receded.

According to Mr Christopher, the fear surrounding the reset of fixed mortgages is not playing out in the market because people are still in employment.

“As far as we know, there has not been a material spike in unemployment, and that might still occur, but at the moment, most of the working population is still employed, so there is no need to sell the home.”

From October next year, all new homes will need to meet accessibility and energy efficiency requirements in many parts of Australia. 

Key points:

• Master Builders says the changes will add $30,000 on average to every new build
• Changes to the National Construction Code will be mandatory for all Queensland homes from October 2023
• The government says energy-saving measures will see power bills reduced by $185 a year

“It’s the first homebuyers who are most impacted, who are struggling to get a deposit together, to make the repayments, and then the cost of construction goes up,” Master Builders CEO Paul Bidwell said.

“$30,000 is a significant amount.”

Under the changes, homes built in Queensland would need to meet a seven-star energy-efficiency rating and be more accessible with at least one step-free entry. 

State government modelling suggested the combined cost would be $6,000.

“What we know is that, on average, it is likely to increase building costs by around 1 per cent,” Minister for Energy and Public Works Mick De Brenni said.

“We must also remember that that is between 14 and 20 times cheaper than the cost of modifying homes after they are built.”

A meeting of building ministers on Friday voted to adopt the changes from October 2022, with a 12-month transition period.

However, New South Wales, Western Australia and South Australia had previously indicated they would opt out of the new code.

Accessible home advocates said they had been discussing these changes for two decades and the move was well overdue.

Margaret Ward, convener of the Australia Network for Universal Housing Design said: “We took much longer than we should have”.

“There was a lot of misunderstanding about what this means and there were governments that were simply not interested in the idea and the housing industry had undue influence,” she said.

But Mr Bidwell criticised the time frame.

He said it would place additional strain on an industry already struggling with a 30 per cent increase in supply costs, and a pipeline of work beginning to slow.

“It’s breathtakingly stressful,” he said.

“[Builders] are going to have to change the way they do their business.

“October 2023 is not that far away and right now they’re dealing with all sorts of other pressures.

“They just don’t need that now.”

Just how different will home design be?

Under the changes, new homes would need to be built to a “silver standard” of accessibility.

This meant, in addition to at least one step-free entry into the home, increasing the width of internal walkways to fit a wheelchair or walking frame, and a toilet on the entry level.

“The changes are critical,” Ms Ward said.

“The United Kingdom did this in 1999.

“Everyone from the ministers down has come to terms with the fact we need to have housing in the future that will be inclusive of all people, older people, pregnant women, little children, that all these folk can be safe in their own homes.”

Mr De Brenni said they had taken a commonsense approach to the changes, with exceptions for places in north Queensland.

“There are sensible exemptions from the accessible housing provisions for steep blocks, for homes that are built on stilts to accommodate overland flow from heavy rainfall,” he said.

“Those exemptions mean that iconic designs like the Queenslander with a set of stairs at the front will be exempt from some of the provisions.”

Double-glazed windows, more rooftop solar and lighter-coloured roofs and walls were among the energy efficiency measures required.

The new code was expected to reduce emissions by 1.64 million tonnes and would assist in Australia reaching its goal of net zero by 2050.

It was anticipated the changes would save the average household $185 a year in power bills.

Master Builders said the cost-benefit analysis done by the Australian Building Code did not add up.

“It failed,” Mr Bidwell said.

“The costs exceed the benefits on both the energy efficiency and accessible housing.

“It beggars belief that the Australian Building Code board have recommended this and the ministers have supported it.”

Meanwhile, advocates would now focus their attention on pushing for a higher “gold standard” for accessibility.

“With tenacity, ordinary citizens can make change,” Ms Ward said.

“It was the ordinary people trying to build ordinary homes that would fit their families now in the future and it will be that group that will speak out again.”

A land valuation does not include the value of any structures or homes built on the land.

From $32.9 billion to $54.6 billion, the total land value across the regional local government areas of Cessnock, Dungog, Maitland, Muswellbrook, Singleton and Upper Hunter doubled between July 1 2022 and July 1 2021.

As a result of attractive lifestyle options, relative affordability and proximity to Newcastle and Sydney, residential land values grew 57.6% more than commercial and industrial land values.

There appears to be a strong demand for property in more remote areas of these LGAs, with rural land values showing a 72.2% increase as demand for lifestyle properties with remote working options and city center links increased. Primary production properties have also gained in value due to favorable seasonal conditions and commodity prices.

As consumer confidence returned to both sectors, commercial and industrial land values increased by 51.3% and 42%, respectively. Another major driver was the limited availability of commercial property due to the boom in new residential estates. Industrial land values also influenced the coal mining industry.

Newcastle, Lake Macquarie, Port Stephens, and the Central Coast also experienced an increase in total land value, but not to the same extent, growing 18.5% from $171 billion to $202.6 billion between July 1 2022 and July 1 2021.

There was a 48.8% increase in industrial land values in these areas, keeping pace with the rest of the region. There was a general shortage of quality industrial stock available to the market, as well as continued growth in e-commerce and logistics. These factors were combined with relative affordability and proximity to Sydney.

Overall, the value of commercial land only rose 24.2% thanks to rebounding consumer confidence and limited supply.

Residential land values increased 16.7% overall as coastal amenity and lifestyle demand, relative affordability, and easy access to Sydney contributed to the growth.

Similar to the regional areas, rural land values in coastal LGAs increased by 33.6% overall, driven by relative affordability and strong demand for properties with remote working options and city centre proximity.

According to the NSW Valuer General, land values in the Hunter have skyrocketed.

A land valuation does not include the value of any structures or homes built on the land.

It may sound good that the land on which homes and businesses are built is rising in value, but it can also come with a double-edged sword. Higher land values mean higher land tax and council rates, which means owners will be spending more in the months to come.

From $32.9 billion to $54.6 billion, the total land value across the regional local government areas of Cessnock, Dungog, Maitland, Muswellbrook, Singleton and Upper Hunter doubled between July 1 2022 and July 1 2021.

As a result of attractive lifestyle options, relative affordability and proximity to Newcastle and Sydney, residential land values grew 57.6% more than commercial and industrial land values.

There appears to be a strong demand for property in more remote areas of these LGAs, with rural land values showing a 72.2% increase as demand for lifestyle properties with remote working options and city center links increased. Primary production properties have also gained in value due to favorable seasonal conditions and commodity prices.

As consumer confidence returned to both sectors, commercial and industrial land values increased by 51.3% and 42%, respectively. Another major driver was the limited availability of commercial property due to the boom in new residential estates. Industrial land values also influenced the coal mining industry.

Newcastle, Lake Macquarie, Port Stephens, and the Central Coast also experienced an increase in total land value, but not to the same extent, growing 18.5% from $171 billion to $202.6 billion between July 1 2022 and July 1 2021.

There was a 48.8% increase in industrial land values in these areas, keeping pace with the rest of the region. There was a general shortage of quality industrial stock available to the market, as well as continued growth in e-commerce and logistics. These factors were combined with relative affordability and proximity to Sydney.

Overall, the value of commercial land only rose 24.2% thanks to rebounding consumer confidence and limited supply.

Residential land values increased 16.7% overall as coastal amenity and lifestyle demand, relative affordability, and easy access to Sydney contributed to the growth.

Similar to the regional areas, rural land values in coastal LGAs increased by 33.6% overall, driven by relative affordability and strong demand for properties with remote working options and city centre proximity.

With heavy infrastructure projects and strong recent capital gains, Toowoomba has become an attractive market for Australian property investors, and suburbs like Cotswood are reaping the benefits.

Cotswood, a suburb located on Toowoomba’s south-western fringe, has been ranked among the highly coveted Smart Property Investment Fast 50 for 2024.

The report and ranking combined the insights of a 14-strong investment expert panel with recent housing performance drawn from open source data and aim to give unparalleled insight into the Australian suburbs that are set for future growth.

Despite interest rates sending the national housing market into a downturn, which was at one stage compared with the Global Financial Crisis, data from CoreLogic found Cotswood to have performed well over the last 12 months, with prices growing 21.5 per cent in that time.

Alongside this increased value uptick, investors have enjoyed gross rental yields of approximately 4.9 per cent, while median rents in the region sit at around $420.

Even with prices soaring for much of 2021 and 2022, the region remains affordable, with a median house price of approximately $450,000, marking Cotswood as a relatively attainable market to enter, even for the more cash-strapped investors.

Casting a wider net to Toowoomba as a whole, the region is expected to house some 230,000 residents by 2050, with a number of provisions in place to ensure one of Queensland’s largest cities continues growing to match rising population.

However, according to Toby Sandell, property partner at The Agency Toowoomba, who spoke exclusively to SPI earlier this year, the region’s present market is far from balanced, with supply massively outstripping demand following a major influx of new residents flocking to the city from NSW and Victoria, where he explained they’re “priced out of the market”.

He shared that the Toowoomba market is “acutely understocked with a disproportionate amount of buyers to sellers, driven by a lower price point and a tight rental market”.

According to SQM Research, the city’s residential vacancy rate for April 2023 was exactly 1 per cent, almost half of what it was during the same month of 2020.

Not only are new arrivals flooding Toowoomba from interstate locations. Mr Sandell explained they are coming in droves from other areas of South-East Queensland, including those making the two-hour drive from the state capital, Brisbane, or other hotspots like the Gold Coast, while “country buyers from western Queensland [are] selling their farms and retiring or moving professionally to Toowoomba”.

His message is clear: “Supply is not keeping up to demand”.

Not only is Toowoomba a “quality town to live in and a cheaper alternative to the likes of Brisbane,” as Mr Sandell put it, but it also boasts a number of key commercial infrastructure projects that increase its appeal to investors and prospective residents.

According to HotSpotting, Queensland’s second-largest regional economy will be strengthened in the coming years due to an influx of major projects that will further cement Toowoomba’s position on the national radar.

The region’s inclusion in Queensland’s successful bid to host the 2032 Olympics and the presence of Wellcamp airport already make it an attractive proposition; however, Hotspotting’s director, Terry Ryder, noted the $1.6 billion Toowoomba Second Range Crossing and $15 billion Inland Rail Link are “helping to cement the city as a [nationally] recognised intermodal transport hub”.

For these reasons, as well as the sturdy, lengthy performance of the region’s property market, Cotswood was included in the prestigious Smart Property Investment Fast 50 ranking for 2024, making it one suburb on every investor’s watch list.

Regional house and land projects are being increasingly snapped up by foreign buyers who are expanding their search for a home to live or invest in.

At the start of June, 10 buyers purchased house and land packages in the Hunter Valley – with an additional 350 expressing interest in the area.

Originating from Hong Kong, Malaysia and China, the buyers had been lured to two projects in the Hunter Valley, with another project in Lake Macquarie considered highly desirable.

Both local and overseas Chinese buyers were looking to regional areas for their Australian property investments.

Peter Li is the general manager of Plus Agency for both Sydney and Shanghai, and told The Daily Telegraph that inner-city apartments were no longer the most sought after asset for this demographic.

“Chinese buyers have reconsidered regional properties because of the pandemic-driven boom in prices there. They can pay less, get more, and obtain a higher yield if they’re purchasing for investment.

“Non-citizens who purchase a regional house and land package only pay stamp duty on the land, but if they buy an apartment they pay stamp duty on the total value.”

In comparison, Mr Li argues an $800,000 apartment will result in a first homebuyer paying 12 per cent in stamp duty – equating to $100,000.

“If you buy an $800,000 house and land package in the Hunter Valley, you only pay stamp duty on the land, which would be worth about $240,000. That means instead of paying $100,000 in stamp duty, you are only paying about $30,000.”

The projects being offered for sale in the Hunter Valley include Apollo Village and Mount View Grange.

Located 250 kilometres north of Sydney, the Apollo Village is a housing development being constructed in the small town of Denman.

In April, 16 house and land packages within the master planned community were sold at a local event – with prices starting at $730,000.

Mr Li said the project is aimed at providing housing for people with disabilities.

“These buyers are providing a service by investing in housing for this overlooked demographic.”

Good Value Realty director John Yang said a number of Asian investors had inquired into Mount View Grange in the Cessnock council area.

Mr Yang said the master planned community will span three hectares and be close to a number of wineries.

“As the local vacancy rates are lower than 1 per cent and demand is high, Asian buyers believe it is a good investment. They are either buying pure investment properties for long-term rentals, or they are buying something they hope to use as a holiday house or a retirement home.

“This project offers a big block of land from 450 sqm to 800 sqm with prices starting from $310,888.

“You cannot buy land in China, so the first thing Chinese do when they get here is look for land they can buy. Freehold land is permanent.”

Major banks like ANZ and NAB estimate foreign buyers account for 2.5 to 4.6 per cent of Australia’s residential housing stock, with the UK holding the highest number of residents owning a property in the country.

It is estimated that Hervey Bay’s median house price in Q1 2023 will reach $608,750 and its median unit price will reach $419,000. This represents a 1.5% annual increase for houses and a 7.4% annual increase for units. The median house price for the quarter from Q4 2022 to Q1 2023 grew at a slower rate, 1.0%, and the median unit price slipped by 2.0%. This indicates that the cash rate increases have been reflected in the market. Within the last 12 months, sales declined by -53.7% (to 239 houses) and -35.1% (to 96 units), indicating an undersupply of stock.

As a result of the rapid swing in vendor discounts between Q4 2021 and Q4 2022, the average vendor discount for both types of properties has been -3.2% for houses and -2.0% for units. In the past three quarters, average vendor discounting has demonstrated a shift in market conditions in favour of buyers.

Compared to Brisbane Metro (3.7%), Hervey Bay had a 4.1% house rental yield in March 2023. In the past 12 months, the median rent for houses in the area increased by 6.0% (to $530 per week) and the number of houses rented increased by 35.9% (to 352). In Q1 2023, the average number of days on the market stayed at 23 days. The same pattern can be observed in the rental market for units in Hervey Bay, confirming its resilience.

Investing in 2-bedroom houses has provided investors with annual rental growth of 17.6%, achieving a median rent of $400 per week.

In March 2023, Hervey Bay had a vacancy rate of 1.3%, slightly above Brisbane Metro’s average of 0.9%. Investors may have capitalised on a tight rental market to drive up vacancy rates in Hervey Bay over the past 12 months, but it is still below the 3.0% benchmark set by the Real Estate Institute of Australia. Due to slower house price growth over the past quarter (Q4 2022 – Q1 2023), an investment environment has been conducive, especially in terms of affordability.

An unusual supply/demand imbalance has hit real estate across the country, affecting everyone in the marketplace – buyers, sellers and tenants.

There’s something of a perfect storm in property today, with a significant supply/demand imbalance affecting everyone in the marketplace – buyers, sellers and tenants.

Firstly, a longstanding housing undersupply has been met with a period of market change and low stock for sale.

Why is stock low? It’s likely a combination of factors, including higher interest rates making it hard for some upgraders to get the finance they need, and concern that once they sell it will be hard to buy back in.

On top of that, we’re in the midst of a rise in immigration, with the Federal Budget forecasting 715,000 new migrants (net) to move to Australia over the next two years alone. That is already adding significant demand to the sales and rental markets of Sydney and Melbourne, in particular.

Migrants typically rent for the first few years but some are buying instead because finding a rental has become difficult due to record low vacancy rates. So, that’s extra demand going into the sales market today.

Also, an extended period of high construction costs, labour shortages, and stories of builders going bust has likely encouraged more families to buy in the established market instead of building their next home. So again, that’s extra demand flowing into the sales market.

Strong employment is underpinning demand, but we also have a large and growing cohort of buyers in the marketplace today that is unaffected by interest rate rises because they’re purchasing with cash.

CASH BUYERS EATING AWAY AT SUPPLY

Data from the electronic conveyancing company, PEXA shows 25 per cent of East Coast residential sales in 2022 (NSW, Queensland and Victoria combined) were to cash buyers.

Many of them are in the prestige sector where cash purchases are common, others are baby boomer downsizers.

Some are foreign buyers purchasing for themselves, for their children who are studying here, or for investment.

Some are buying in the regions – likely city dwellers making a seachange or treechange to more affordable markets. Today’s first home buyers also have a lot of help, which is somewhat offsetting the impact of rising rates. There’s the Bank of Mum and Dad and loads of government help including stamp duty breaks and the First Home Guarantee.

Put all of this together, and we’ve got a supply/demand imbalance that is making it quite hard for buyers in some areas to find the right property at the right price for them.

It’s taking longer to secure a home, and this is creating a sense of urgency and stronger competition, which is why prices are moving upwards earlier in the market cycle than we’d normally expect, given rates are still rising. (Yes, rates are on hold for now but the Reserve Bank has flagged that further rises may be necessary.)

BANK WATCHDOG HELPED CREATE RENTAL SUPPLY CRISIS

The supply/demand challenge in the sales market is also present in the rental market.

The undersupply in rentals has been growing for years due to a decline in investor buying between 2014 and 2020, according to Bureau of Statistics figures.

The trend began after APRA first asked the banks to limit the number of loans to investors.

Now that rental demand is rising, we’re seeing the impact of that undersupply in the form of rising weekly rents.

Rising inflation and interest rates are also key factors. Landlords are paying more interest on their loans and higher amounts for council rates, insurance and repairs, so they have to raise the rent to keep their investments viable.

Looking ahead, we are expecting the supply/demand imbalance in the sales market to loosen next month. There are already signs that stock is rising, partly due to the Spring season but also likely due to improving prices. In the rental market, we’re unlikely to see weekly rents stop rising until interest rates stop rising.

The good news is that many economic analysts think we’re very close to the end of rate hikes, with inflation steadily falling and retail volumes dropping as people rein in their spending.

Source: Gold Coast Bulletin