Rental demand hits a record high
Demand for property hit yet another record high in February 2017, suggesting strong price growth will continue and the affordability crisis in Sydney and Melbourne will only become more apparent.
REA Group Chief Economist Nerida Conibee said borrowers have shrugged off rising interest rates from banks, continuing their search for property.
"In all states, buyer demand increased over the month as did rental demand," she said.
"Based on high levels of demand on the rent section of realestate.com.au, the current number of property investors in Australia are unable to adequately provide enough rental properties."
So why is rental demand so high?
According to realestate.com.au, there are a number of factors including lifestyle, but it is largely driven by continued unaffordability in our big cities in the buy market, forcing people to turn to renting.
"Just like in the buy market, it’s abundantly clear that supply of rental housing has not kept pace with demand," Ms Conibee said.
"The negative gearing debate has continued to heat up, but the incredibly high levels of rental demand suggest that any changes to the way rental housing is provided in Australia needs to be carefully considered.
"If you take negative gearing away, there may be less investors in the market meaning a sudden drop in available rental housing, but it could also slowly moderate the rate of house price growth in our most unaffordable cities.
"While lifestyle factors such as access to great shops, cafes and restaurants are important for renters, it appears many are prepared to give these up if they decide to buy."
The top suburbs in Queensland are all on the Gold Coast, with eight of those making the National List. It is likely that the large amount of apartment development in Brisbane is currently satisfying demand in the city which is why there are no Brisbane suburbs in the below list.
- Kirra QLD 4225
- Tugan QLD 4224
- Miami QLD 4220
- Reddy Creek QLD 4227
- Bilinga QLD 4225
- Merrimac QLD 4226
- Mermaid Waters QLD 4218
- Burleigh Waters QLD 4220
- Clear Island Waters QLD 4226
- Coolangatta QLD 4225