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30 Jul, 2020

What is the Impact of COVID-19 on Rental Vacancies in Gold Coast?

The COVID-19 pandemic has forced hundreds of countries across the world to impose lockdowns in an attempt to control the rapid spread of the infection. These lockdowns meant restricting millions of citizens to their house, closing down all size of businesses and putting a full stop on almost all economic activities.

According to the International Monetary Fund, the global economy will shrink by 3% this year, and it will be the biggest downfall since the great depression. This deadly virus has made a devastating impact on the global economy, and it has not spared Australia.

The unemployment rate in the country jumps to 6.2% as 600,000 jobs lost because of the COVID -19. This financial crisis is not allowing the tenant to pay their rent. A significant section of the tenants moved out of their house for a new job, or higher education has returned home. People who can afford to pay rent are dealing with travel bans and border closures. All these factors have increased the rental vacancies in a metropolitan region like the Gold Coast.

Although the percentage is low, some people are still relocating in search of a new job opportunity. If you are also planning to move to this part, do your research and take help from experienced removalists in Gold Coast, who can ensure a stress-free moving. Here is detailed information that will help you to understand the impact of COVID-19 on rental vacancies in Gold Coast. Let’s have a look!

Massive Rent Reduction in Gold Coast Suburbs

As the COVID-19 crisis has hit the property sector of the country hard, many cities have witnessed a massive reduction in the rent and Gold Coast is possibly the best example for that. As the rental vacancies have increased, the rent in the Gold Coast suburbs has seen a significant dip.

Surfers Paradise and Broadbeach are two poplar suburbs in Gold Coast. The apartments in these suburbs have witnessed a massive rent decrease. The rent of the two-bedroom flat located on Cavill Avenue in Surfers Paradise was around $630 per week at the start of this year, dropped to $425. In Broadbeach, the rent for three and one-bedroom apartments have reduced by 9 and 8 % to reach $525 and $360 per week.

Last years, the rent of the one-bedroom units in Boulevard North suburb was $450 per week, but this year, it has dropped to $350 and $390. It is because the demand has reduced, and the rental vacancies have increased. So, if you are planning to move to this part of the country, consider these affordable options and hire cheap removalists in Gold Coast.

The Coronavirus pandemic has affected the market to the extent that even several new vacancies have appeared in those locations that are close to employment hubs like The Star complex and Pacific Fair. These locations always have a massive demand among the tenants, so increased rental vacancies in this area exemplifies the seriousness of the problem.

The Verdict of REIQ on Rental Vacancies in the Gold Coast

The Real Estate Institute of Queensland (REIQ) believes that the price cuts in the rent are the outcome of an adjusting market because hundreds of retail and hospitality workers have lost their jobs. They have either moved back to their home or staying with their friends because they were not able to pay the rent. The apartments with rent around $500 per week have witnessed the biggest drop.

According to REIQ, the COVID-19 has created a storm in the rental market of Queensland. Property agents usually consider a vacancy rate of 2.5 % or less as a tight rental market. Before the outbreak of coronavirus, there were numerous regions where the rate was around 2 to 2.5%. Some locations even had a rental vacancy rate of less than 1%.

However, things have drastically changed, and now the same places have a rental vacancy rate around 6 to 7%, and it is massive. The regions in Gold Coast also climbed up to 5% in May, but things are improving. So, if you want to relocate to this part, it is a great time. Hire reliable removalists in Gold Coast and accomplish a stress-free move.

An initiative from the Queensland Government

Keeping in mind the challenges tenants can face during the COVID-19 pandemic, the Queensland Government has introduced a new law to help the tenants in such a tough time. According to the law, the government has imposed a temporary freeze on evictions. A person will only get the advantage if the person fulfils the following criteria.

• If you or someone you care for infected.
• If you place of employment is closed or restricted by officials
• If you are self-isolating because you are a vulnerable person or live with such a person
• If you cannot go to work or return home due to travel restrictions imposed by officials
• If you cannot leave the country due to COVID-19 emergency
• If the payable rent is 30% or more of the income or you suffered a loss of 25% or more income.

This law has helped a lot of tenants to stay at their rental property, so it has prevented the further growth of rental vacancies in Gold Coast as well as other parts of the Queensland. This law has introduced in April, and it will last until September. Tenants who don’t fulfil the criteria mentioned above will have to meet their tenancy compulsions, including paying their rent as they usually do.

If a person is having difficulty paying your rent, it is advisable to talk with the landlord/property owner and request to renegotiate the rental agreement. It can be an uncomfortable discussion, but it is essential to self-resolve the issue in this difficult time.

Future of Rental Vacancies in Gold Coast

Experts strongly believe that the Gold Coast property market may not face a significant further downturn like other regions of Australia during the coronavirus pandemic. They predict that there will be an increase in the number of people moving from other states and considering the final crisis, the majority will opt for rental property.

According to them, when the health crisis will get over, the Australians would re-evaluate their lives and look for locations like Gold Coast that offer a relaxed lifestyle, great weather and lower cost of living.

In the worst-case scenario, Australia may witness a second wave of the ongoing deadly disease. If that happen then, housing prices can drop by up to 30% in the big cities like Sydney and Melbourne. Even in this situation, the Queensland market may remain stable because people will look for a cheaper place.

However, there is no denying that relocation to Gold Coast and living there largely depends on the employment factors and the jobs of thousands of people depends on the tourism, which has come to a halt. So, unless things get better and the domestic tourism market picks-up, you will see rental vacancies on the higher side. If you have already found a job here and planning to move here, look for the most affordable region and hire trustworthy removalists in Gold Coast. They will ensure quick and safe relocation.

The Bottom Line

As COVID-19 pandemic has made a massive impact on employment, and thousands of people have lost their jobs, paying the rent has become a burden. And this is the reason why there is an increase in rental vacancies. If you are planning to move to Gold Coast for a job or low cost of living, read the essential information mentioned above. It will help you to make the right decision. Hire professional removalists in Gold Coast to experience a stress-free relocation. You should spend more time in the research of the right rental property.