As we usher in the first quarter of the year, the Gold Coast rental market continues to reflect broader economic shifts and the ongoing demand for both long-term and short-term accommodation options. The Gold Coast, renowned for its beautiful beaches, world-class amenities, and thriving tourism industry, has seen strong rental market dynamics over the past year, and Quarter 1 (Q1) is no exception. In this article, we’ll explore the key trends, factors influencing rental prices, and predictions for the Gold Coast rental market moving forward.

1. The Demand Surge: A Resilient Market

The Gold Coast rental market has remained resilient despite broader economic challenges, with ongoing demand for both long-term residential leases and short-term holiday rentals. Several factors contribute to this:

• Increased Migration to Queensland: Both interstate and international migration to Queensland, especially from southern states like New South Wales and Victoria, has continued to fuel demand for rentals. A combination of lifestyle, job opportunities, and affordable living compared to Sydney and Melbourne has made the Gold Coast an attractive destination for many.

• Remote Work and Lifestyle Choices: The flexibility of remote work remains a major driver. Many individuals and families are opting for a lifestyle change, trading big city living for the coastal, laid-back lifestyle that the Gold Coast offers. The blend of work-life balance has fueled further demand in both urban and suburban rental markets.

• Tourism Recovery: As tourism gradually rebounds post-pandemic, short-term holiday rentals have seen a steady increase in demand, particularly in high-demand areas like Surfers Paradise, Broadbeach, and Coolangatta. This influx has kept rental yields strong for property owners, especially those offering furnished short-term stays.

  
  

2. Rental Price Trends: Stability with Growth

In terms of rental prices, Q1 has seen some interesting patterns:

• Stable Long-Term Rent Prices: While the rental market in other Australian cities experienced significant price surges, the Gold Coast rental market has been relatively stable. Renters are still facing rising costs, but it hasn’t reached the same levels as places like Sydney and Melbourne. Average rental prices for a two-bedroom apartment in central Gold Coast have increased by around 4-5% year-over-year, but the surge has been moderate.

• Higher Demand in Popular Suburbs: Suburbs like Broadbeach, Burleigh Heads, and Southport continue to see the highest rental demand, with rents pushing upwards. This is particularly true for properties located near the beach, transport links, and popular dining and shopping precincts.

• Luxury Properties Seeing Significant Growth: There has been notable growth in the luxury rental sector, particularly for premium apartments and houses. As investors and high-net-worth individuals continue to seek high-quality rentals, the Gold Coast luxury market has experienced a notable uptick in prices.

• Pressure on Affordable Rentals: While demand is strong across the board, affordability remains an issue. For low to mid-range rental properties, there has been continued pressure on rental prices as stock remains tight, especially in suburban areas with limited new builds. Renters on lower budgets might find it more challenging to secure a rental property that suits their needs.

  
  

3. Rental Vacancy Rates: Tight Market

As of Q1, the Gold Coast is experiencing one of the lowest rental vacancy rates in recent years. According to the latest reports, the vacancy rate hovers around 1.2%, far below the typical healthy balance of 2-3%. This tight market is pushing prospective tenants to act quickly and landlords to be more selective with applications.

• Suburbs with Tightest Vacancies: Areas such as Surfers Paradise, Mermaid Beach, and Currumbin have seen some of the lowest vacancy rates, indicating that competition for rental properties is high. These areas continue to benefit from their proximity to the beach, cafes, public transport, and key employment hubs.

• Impact on Renters: With limited available properties, renters are finding themselves in bidding wars for popular rentals. As a result, more renters are looking for creative solutions, such as signing shorter leases to give them flexibility to move if better options come up.

  
  

4. Investors and Development: Looking Ahead

Investor sentiment on the Gold Coast rental market remains strong, with many looking to capitalize on the continued rental demand. The region has also seen a noticeable increase in property development, with new apartment buildings and townhouse complexes being built to meet the growing demand for rentals.

• Development Projects: Many of these new developments are aimed at offering higher-density housing, which can ease some of the supply pressures on the rental market. However, the construction sector continues to face delays and supply chain issues, meaning many planned developments may not come online as quickly as originally expected.

• Investment Strategies: Property investors are advised to carefully consider areas with strong growth potential, such as Southport, Robina, and Coolangatta, which are undergoing infrastructure upgrades and attracting significant population growth. Coastal properties near key tourist hubs, such as Broadbeach and Surfers Paradise, continue to perform well in the short-term rental space.

  
  

5. Outlook for Q2 and Beyond: Will the Market Continue to Soar?

Looking ahead to the second quarter of the year, the Gold Coast rental market is expected to continue its upward trajectory, albeit at a more moderate pace. The following factors will likely play a role in shaping the market:

• Interest Rates and Economic Factors: As the Reserve Bank of Australia (RBA) continues to monitor inflation and economic conditions, the possibility of further interest rate hikes could impact investor confidence. Higher rates might slow the rate of property price increases, but the demand for rentals will likely remain strong due to the ongoing migration and lifestyle shifts.

• Supply Chain Delays in Construction: As mentioned, construction delays are expected to affect the number of new rental properties hitting the market. This will continue to contribute to the tight vacancy rates for the foreseeable future.

• Tourism Boost: A continuing recovery in tourism could drive up demand for short-term rentals in high-tourism areas, which may influence the broader rental market. However, this demand may also prompt a shift in rental supply, with landlords focusing more on the lucrative short-term market, leaving long-term rental stock tight.

  
  

Conclusion

The Gold Coast rental market in Quarter 1 of 2025 is showing resilience, with demand still strong across both long-term and short-term rental segments. Renters can expect continued competition for properties, particularly in high-demand areas, while investors remain optimistic about future returns. As Q2 approaches, the balance between supply and demand will be crucial in determining how the market evolves. If you're looking to rent or invest in the Gold Coast, staying informed on market trends and the latest developments is key to making smart decisions in a rapidly changing landscape.uarter 1 Rental Market Gold Coast