Rents in beachside suburbs of Sydney and the Gold Coast have surged by more than 40 per cent in a year.
New PropTrack data showed weekly increases of more than $600 in some postcodes.
The return of international students and the massive shift to Airbnb has seen rental vacancy rates in some cities fall to just one per cent, affecting both house and unit rents.
When it came to renting a house, Clovelly in Sydney’s eastern suburbs had the biggest jump of 46.5 per cent or $633 to a mid-point of $1,995 in the year to February, up from $1,362.
Middle Cove on Sydney’s lower north shore saw its rents soar by 44.7 per cent 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 mid-point of $1,995, up from $1,362
On Sydney Harbour, Rose Bay in the eastern suburbs saw its rents rise by 42.9 per cent or $600 to $2,000, up from $1,400.
The Gold Coast also became more dearer for tenants, with Paradise Point rents surging by 50 per cent or $425 to $1,275, up from $850.
At nearby Surfers Paradise, rents rose by 41.1 per cent or $430 to $1,475, up from $1,045.
A short drive away, Clear Island Waters, a canal suburb, saw its rents rise by 40 per cent 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 a tight rental vacancy rate of 1.3 per cent.
SQM Research managing director Louis Christopher said landlords were now listing houses on Airbnb and Stayz to capitalise on tight rental vacancies, reducing the supply of available stock for long-term leases.
‘You’ll see there right now, that there are more properties available on the short-term leasing market than what there are on the long-term leasing market in the city of Brisbane,’ he told Daily Mail Australia.
‘You’ll be shocked at the numbers. This is crazy. There has been this massive move towards short-term leasing on standard suburban stock, your standard, three-bedroom home.’
The Gold Coast also became more dearer for tenants. At Surfers Paradise (pictured looking from Currumbin Alley beach), rents rose by 41.1 per cent or $430 to $1,475, up from $1,045
Demand for short-term leases had surged since Australia reopened to international students in late 2021, shortly before overseas tourists were allowed back in again.
‘That demand would come from not just renters but it would come from overnight business people, holidaymakers, university students or anyone who just needs a property for the short term,’ Mr Christopher said.
The sharper rises in apartment rents occurred in regional areas north of Sydney.
Soldiers Point in Port Stephens saw its weekly rents rise by 42.1 per cent or $163 to $550, up from $387.
The Newcastle suburb of Glendale had a 50 per cent increase in rents, with the $150 rise taking rents to $450, up from $300.
Brisbane’s outer north had one entry, with the Bribie Island suburb of Banksia Beach, in the Moreton Bay area, seeing a 35.6 per cent or $160 increase to $610, up from $450.
Sydney had seven spots in the top 10 for rent increases, with the New South Wales Hunter region having two positions and Brisbane having one.
At South Granville, in Sydney’s west, the median apartment rent surged by 58.2 per cent or $163 to $443, up from $280 – making it the suburb with the biggest percentage increase from a lower base.
Suburbs with the biggest rent rises
CLOVELLY, Sydney east: Up 46.5 per cent or $633 to $1,995 from $1,362
MIDDLE COVE, Sydney north shore: Up 44.7 per cent or $525 to $1,700 from $1,175
ROSE BAY, Sydney east: Up 42.9 per cent or $600 to $2,000 from $1,400
PARADISE POINT, Gold Coast: Up 50 per cent or $425 to $1,275 from $850
SURFERS PARADISE, Gold Coast: Up 41.1 per cent or $430 to $1,475 from $1,045
CLEAR ISLAND WATERS, Gold Coast: Up 40 per cent or $400 to $1,400 from $1,000
RIVERVIEW, Sydney north shore: Up 38 per cent or $400 to $1,450 from $1,050
BALMAIN EAST, Sydney inner west: Up 36.6 per cent or $375 to $1,400 from $1,025
DOUBLE BAY, Sydney east: Up 25 per cent or $400 to $2,000 from $1,600
VAUCLUSE, Sydney east: Up 15.2 per cent or $395 to $2,995 from $2,600
SOUTH GRANVILLE, Sydney west: Up 58.2 per cent or $163 to $443 from $280
GLENDALE, Newcastle west: Up 50 per cent or $150 to $450 from $300
SOLDIERS POINT, Port Stephens: Up 42.1 per cent or $163 to $550 from $387
BANKSIA BEACH, Brisbane north: Up 35.6 per cent or $160 to $610 from $450
EVERLEIGH, Sydney inner south: Up 33 per cent or $208 to $838 from $630
CARRINGBAH SOUTH, Sydney south: Up 30.7 per cent or $230 to $980 from $750
SYLVANIA, Sydney south: Up 30 per cent or $150 to $650 from $500
MILLERS POINT, Sydney north shore: Up 27.3 per cent or $180 to $840 from $660
HAYMARKET, Sydney central: Up 25 per cent or $170 to $850 from $680
ZETLAND, Sydney inner south: Up 23.8 per cent or $150 to $780 from $630
Source: PropTrack data median house and unit rent increases in the year to February 2023