When COVID-19 hit our shores, Code Property Group was faced with the uncertainty of the impact on the property market. Would properties still sell and how would tenants meet their commitments over the next 12 months? Would we see tenants seeking help unable to pay their rent? Would we see landlords struggling with mortgages?

Now, looking back on the year 2020, the demand for real estate, especially on the Sunshine Coast and the wider Queensland area has never been so high and shows no sign of easing into 2021

This unique year brought with it an unprecedented market. Tight vacancy rates and increased median rents has lead the REIQ to suggest 2021 may see one of the largest rental booms in history.

The vacancy rate for the quarter ending in September 2020 was 2 per cent for the Greater Brisbane region with the Sunshine Coast operating on an even tighter rate at 0.5 per cent.

REIQ Southern/Logan zone chair said that the outer areas, such as the Sunshine Coast, are showing “insane” numbers across rentals with multiple people inspecting and multiple applications on properties.

“They can’t get enough properties to rent,” she said.

“Interestingly, I think it’s that many people can now work from home and they don’t need to be in the inner city. They’re happy to find cheaper rent a bit further where there’s more space.”

Queensland Market Monitor Propertyology Head of Research, Simon Pressley, said that the reality of the market in Australia is we don’t have enough housing supply for the existing 25.6 million population.

“Propertyology is predicting that these next couple of years will produce the biggest increase in rents that Australia has seen in living memory,” Pressley said.

Here at Code Property Group, we are averaging 20 applications per property with some garnering much larger numbers depending on the property’s location and property features.

While multiple applications on a property isn’t uncommon the volume of applications for every property hitting the market is unprecedented and is seeing very low days on market and leaving a lot of great applicants without a rental home.

“Without a doubt we are experiencing some of the lowest vacancies the Coast has seen for 30 years,” Code Property Group Director Candice Gillies said in a call out to the community around the “rental crisis”.

So, looking at not only the rental numbers on tight vacancies but also the tight stock around sales, the REIQ has been calling on the Government since the end of 2020 for support, by requesting a replacement on stamp-duty to a more broad-based land tax, as it is in the Australian Capital Territory.

Adopting this approach would encourage investors to purchase properties that can house more Queenslanders, increasing rental supplies across the state back to a healthier and more sustainable level. Source: REIQ

It is estimated by studies done at the REIQ that as many as 340,000 property transactions are foregone annually due to the existence of stamp duty and accounts for approximately 45 per cent of the total cost of moving property.

SOURCES: REIQ; SQM Research; QMM