Page 18 - Tropic Magazine Issue 31

TROPIC • REAL ESTATE

Rent rises

PROPERTY
It’s no secret that Cairns is in prices are a whopping 39% higher. lending watchdog limited the amount
the midst of a rental crisis, but The increases coincide with a shortage of of loans issued to investors as well as the
new research shows our city’s rental properties. According to the Real amount of interest-only loans. “It is not a
Estate Institute of Queensland, vacancy
COVID creation – it was APRA’s refusal to
rent rises are well below those in rates in more than 70% of the state’s properly consider the full consequences
other regional areas. rental markets are below 1%, which is of tightening credit policy that became
classed as chronically low. the primary reason for Australian real
Real Estate analyst Propertyology has In Cairns, the rate sits at 0.6%. estate today being locked up,” he said.
found the cost of renting in Cairns So why the rental squeeze? According “It greatly concerns me that no one truly
has climbed six-per-cent in the past 18 to Propertyology’s Simon Pressley, understands the extent of what can only
months, after comparing June advertised COVID-19 has only had a small role in be described as a horrible mess. There is
rents with January 2020 figures. But in the lack of properties open for rent. no quick fix but the only viable solution
Townsville and Byron Bay there’s been a He places the blame on the Australian is to reduce barriers of entry for the
15% increase, Mount Isa and Port Hedland Prudential Regulatory Authority’s everyday Aussie property investors who
rents have gone up 18% and Hervey Bay (APRA) credit squeeze in 2017, when the generate the rental supply.”

Median weekly rent in Cairns

$419 three-bed house

$332 two-bed unit

Source: SQM Research

18 • Tropic • Issue 31