Buy-v-rent dilemma in GC market

WEEKLY rent is now 30 per cent higher than mortgage repayments for units in some Gold Coast suburbs.

Average home loan repayments for apartments in 16 suburbs are less than median weekly rent in 2021.

The 16 suburbs are: Molendinar, Pacific Pines, Southport, Nerang, Labrador, Robina, Oxenford, Surfers Paradise, Ashmore, Mermaid Beach, Arundel, Miami, Hope Island, Burleigh Heads, Benowa and Broadbeach

In seven of those suburbs, renters are paying 30 per cent more than they would if they had a mortgage, latest data from PRD shows.

In Molendinar, mortgage repayments of $284 were 33 per cent less than median rent of $425. In Surfers Paradise, rent was 18 per cent more than mortgage repayments. Robina (22 per cent), Labrador (22 per cent) and Southport (23 per cent) also had noticeable differences.

Kollosche agent Rob Lamb said units priced under $1m were selling at record speed.

“There is a real bottleneck with rentals, so we are finding people who have a sufficient deposit to be able to get their lending in order are looking at buying as a solid option,” Mr Lamb said.

At the top end of the market, ageing baby boomers were upscaling the 1980s dream of retiring to a sky home in the Queensland sun.

While developers once built units geared for short-term or holiday letting, owner-occupiers were splashing big bucks on new apartments prioritising luxury amenities, space and location.

Mr Lamb said buyers were snapping up boutique apartments even before they hit the market, including a subpenthouse in 31 Broadbeach that went for $4.1m in a cash unconditional sale.

“The value to these apartments is now fairly well established and that is evidenced by the fact that new properties being built off the plan are often selling out before completion,” he said.

Ray White Surfers Paradise CEO Andrew Bell said demand for units was the strongest in 20 years.

“Rising prices have driven more people into apartments who would otherwise have bought houses,” Mr Bell said.

“A lot of people migrating to Queensland are choosing an easier lifestyle by owning a unit,” he said.