Rents in the coastal suburbs of Sydney and the Gold Coast have increased by more than 40 per cent in one year.
New data from PropTrack showed weekly increases of more than $600 in some ZIP codes.
The return of international students and the massive switch to Airbnb has seen rental vacancy rates in some cities drop to just one percent, affecting both home and unit rentals.
When it came to renting a house, Clovelly in Sydney’s eastern suburbs had the biggest increase of 46.5 per cent or $633 to a midpoint of $1,995 in the year to February, up from $1,362.
Middle Cove, on Sydney’s lower north shore, saw its rents soar 44.7 percent, or $525, to $1,700, up from $1,175.
When it came to renting a house, Clovelly (pictured) in Sydney’s eastern suburbs had the biggest jump of 46.5 per cent or $633 to a midpoint of $1,995, up from $1,362
In Sydney Harbour, Rose Bay in the eastern suburbs saw rents increase by 42.9% or from $600 to $2,000, up from $1,400.
The Gold Coast also became more expensive for renters, with Paradise Point rents rising by 50 percent or $425 to $1,275, instead of $850.
In nearby Surfers Paradise, rents rose 41.1 percent or $430 to $1,475, up from $1,045.
A short drive away, Clear Island Waters, a canal suburb, saw its rents increase by 40 percent, or $400, to $1,400, from $1,000.
The Gold Coast had three suburbs in the top 10 for rent increases, with the other seven in Sydney.
Both areas have an adjusted rental vacancy rate of 1.3 percent.
SQM Research managing director Louis Christopher said landlords are now listing homes on Airbnb and Stayz to capitalize on adjusted rental vacancies, reducing the supply of available stock for long-term leases.
“You’ll see right now that there are more properties available on the short-term rental market than there are on the long-term rental market in the city of Brisbane,” he told Daily Mail Australia.
The numbers will surprise you. This is crazy. There has been a massive move towards short-term leasing in Standard Suburban Stock, your standard three-bedroom home.
The Gold Coast has also become more expensive for renters. In Surfers Paradise (pictured looking from Currumbin Alley beach), rents increased 41.1% or $430 to $1,475, up from $1,045
Demand for short-term rentals had increased since Australia reopened to international students at the end of 2021, shortly before foreign tourists were allowed in again.
“That demand would come not only from renters, but also from overnight businesspeople, tourists, college students, or anyone who only needs a short-term property,” Christopher said.
The steepest increases in apartment rents occurred in regional areas north of Sydney.
Soldiers Point in Port Stephens saw its weekly rentals increase by 42.1 percent or $163 to $550, up from $387.
The Newcastle suburb of Glendale saw rents rise 50 per cent, with a $150 increase taking rents to $450, instead of $300.
Brisbane’s outer north had an input, with the Bribie Island suburb of Banksia Beach in the Moreton Bay area seeing an increase of 35.6 per cent or $160 to $610, up from $450.
Sydney had seven places in the top 10 for rent increases, with the Hunter region of New South Wales with two positions and Brisbane with one.
In South Granville, in western Sydney, median rent for apartments rose 58.2 per cent or $163 to $443, up from $280, making it the suburb with the highest percentage increase from a lower base.
