The Sunshine Coast’s house rental cost has outperformed the rest of Australia with the sleepy suburb of Marcoola topping the list.
REA Group economist Anne Flaherty says regional Queensland has seen more population growth than any other area.
“A lot of that has been driven by interstate migration,” she says. “The Sunshine Coast has been the standout region.”
The latest REA rental report shows Marcoola has recorded the strongest growth in median house rental costs.
In the three months to July 2021, the median rent went up to $650. In the same period last year it was $365 per week.
“One reason why the jump has been so high is a lot of short-term accommodation has been converted into long-term accommodation,” Ms Flaherty adds.
Marcoola’s Northshore Realty business partner Debbie Pashley says she has seen rents in the area increase by between 30 and 40 per cent, with one in four applications coming from people outside the area.
In July last year, she notes, the market was skewed and mid-pandemic. Her agency was struggling to rent properties from their rent roll of 600. “We went from having an availability of 36 properties to now where we have seven,” she says.
Ms Pashley says Marcoola has been a quiet, undiscovered pocket, impacted by people’s concern around the planes flying over the area. The flight path has now changed. New people are moving into the area. Supply and demand is now much higher.
“People have now woken up and realised it’s probably a bit undervalued, coupled with the overall price increase, which has happened across the board for all rental properties,” Ms Pashley says.
On the national list is also Coolum Beach. Adams & Jones managing director Scott Gooderham says “flat out” he’s seen a massive increase in the desirability of the area either to buy or rent.
While Coolum has been a sleeper with stunning beaches and good proximity to the CBD, “Coolum is now maturing into its own because other areas nearby are in very high demand” including the adjacent Sunrise Beach, Mr Gooderham says. “Any part of Coolum is close to the beach which makes it highly desirable.”
Mr Gooderham adds Coolum rental properties are often over-subscribed while the Coast continues to be in FOMO mode.
“I would expect demand won’t slow in the Sunshine Coast any time soon,” Ms Flaherty says.
Sunshine Coast (R) LGA
- Median rent of $420 per week for a 2-bedroom flat/unit in the 12 months ending June 30, 2021
- Median rent of $500 per week for a 3-bedroom house
- Median rent of $400 per week for a 2-bedroom flat/unit in the 12 months ending June 30, 2021
- Median rent of $390 per week for a 3-bedroom house
– Source Queensland Treasury