Navigating the Gold Coast Real Estate Market: A Message to Our Valued Landlords

Navigating the Gold Coast Real Estate Market: A Message to Our Valued Landlords

Hello, my name is Andrew Bell, Chairman of the Ray White Surfers Paradise Group. Our team is honoured to look after your property, and like you, I am passionate about real estate and the security it provides to so many Australians. For over 50 years, I’ve had the privilege of working in this industry, witnessing its incredible growth, and understanding the shifts that impact investors. That’s why I’m reaching out today with an important update for our landlords.

A Changing Market

The real estate market has been undergoing significant shifts. In some parts of Australia, such as Victoria and certain areas in Sydney, we’ve seen property prices start to cool off. However, here on the Gold Coast, the situation is quite different. Although there’s been a slight reduction in the number of people attending open homes and auctions, property values have remained stable. This is a testament to the balanced supply and demand we’re currently experiencing in the region.

Despite fewer buyers in the market, the Gold Coast remains a standout destination for property investors, particularly with the city’s rapid population growth. We’ve just surpassed 700,000 residents and are on track to reach one million by the late 2030s. With the 2032 Brisbane Olympics on the horizon, the region will continue to experience demand, which is excellent news for property owners.

The Return of Investors

Over the past few years, many investors faced difficulty entering the market due to stiff competition from owner-occupiers. However, the tide is turning. Investors are returning, with borrowing for investment properties up 30% from last year. With fewer owner-occupiers willing to overextend at auctions, it’s become easier for investors to secure properties at market value, making this a prime time to expand portfolios.

Legislative Updates

There have been several legislative changes recently that could impact your investment. One significant update relates to bonds. As of September 30th, landlords are limited to collecting a maximum of four weeks’ rent as bond, regardless of property rent. Another change involves the process of claiming from tenants’ bonds, which now has tighter timeframes, although this won’t be a major change for us as we’ve always operated with strict processes in place.

Additionally, there are new rules regarding lease breaks. Previously, tenants who broke their lease were responsible for covering all related costs, including rent until a new tenant was found. Now, a sliding scale is applied based on how much of the lease term is remaining. While this might seem concerning, lease breaks remain rare, accounting for only about 1% of our rent roll.

Adjusting to Market and Legal Changes

These new regulations are a reminder of the importance of experienced property management. At Ray White Surfers Paradise, we’ve always been proactive in our approach, ensuring that we comply with the latest rules while maximising your returns. With more scrutiny on the rental industry, having a competent and knowledgeable team is essential to navigate these challenges smoothly, without any negative impact on your investment.

Shifting Away from Airbnb

We’ve also seen a noticeable shift from Airbnb-style holiday letting back to permanent rentals. Many landlords are finding that the costs associated with short-term rentals – such as high management fees, utility bills, and inconsistent occupancy – are not delivering the returns they expected. As economic conditions tighten, permanent rentals offer more stability and consistent income, making them a better long-term investment strategy for many property owners.

The Gold Coast Advantage

The Gold Coast remains one of Australia’s most attractive markets, and now more than ever, we’re seeing an upswing in interest from investors. With the population growth, strong demand for rentals, and the upcoming Olympic Games, the long-term outlook is very positive.

If you’re looking to expand your portfolio, now is a great time to explore new investment opportunities. Areas like Southport still offer excellent value and potential for future growth, making them ideal for investment.

At Ray White Surfers Paradise, we’re committed to keeping you informed and ensuring that your investment is in the best possible hands. Over my 50 years in the industry, I’ve seen that there’s no better path to building wealth than real estate. Thank you for trusting us with your property, and we look forward to continuing to provide you with the best service and insights. If you have any questions or would like to explore new opportunities, don’t hesitate to get in touch.

We’ll be back with another market update in three months. Until then, rest assured that your property is in good hands.