Rents on the rise in Gladstone as demand grows
RENTS are on the rise in Gladstone in response to a surge in demand for properties, which will see some residents paying up to $30 a week more.
In 2019 renters enjoyed the luxury of three of Australia's cheapest suburbs.
But now the market has strengthened as people seize opportunity plus the region's wonderful climate and lifestyle.
The New Gladstone Open Discussion Facebook page was bombarded with more than 70 comments from people about rent increasing.
Georgi Dieker said: "Our rent has gone up by $50 a week over the last two years."
Kat Boyes said she was grateful she didn't rent anymore.
"Landlords see the covid bonus so up go rents," Ms Boyes posted.
Mana Malo said: "The real estate proceeded to tell us that the housing market was a lot higher now for renting and that we should accept it because we still had a good deal."
Ray White Gladstone director John Fieldus said Barney Point, South Gladstone and Clinton were acknowledged as three of Australia's cheapest rental suburbs last year by the Real Estate Institute of Queensland.
Mr Fieldus said people from around Australia had moved to the Gladstone region and the market had tightened considerably.
"Rents have stagnated since 2018 and now the market demand is much greater we are seeing a corresponding increase in rent," Mr Fieldus said.
"Our data shows that rent has increased by about 20 per cent over the past two years, about 10 per cent per annum."
Despite this rise, Mr Fieldus said the region still enjoyed some of the lowest rents on the east coast, if not in Australia.
"The rental rates here are still much lower than what they were in 2008," he said.
Elders Real Estate Gladstone principal Colin Burke said Gladstone rental prices were previously at the absolute bottom of the market.
"Rents are increasing gradually but they come from a very low base," Mr Burke said.
"The landlords were devastated when the market was at its lowest.
"There are not a lot of properties around now and the rental market has been getting increasingly tight for the past six months."
Mr Fieldus and Mr Burke said the vacancy rate in the rental market was below 2 per cent.
Real Estate Institute of Queensland CEO Antonia Mercorella said the Gladstone rental market had faced some tough challenges over the past five years but vacancy rates had dropped by 6.4 per cent since 2017.
"It's anticipated that the Gladstone market has re-entered a long-awaited recovery phase, with further increases anticipated in the next 12-18 months beyond the effects of the pandemic," Ms Mercorella said. "Rent levels haven't increased in response to any government supplements for those people affected by COVID-19.
"With tight vacancy rates, higher rent levels are to be expected."