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By Cheryl Sterkenburg, Bond University journalism student
Varsity Lakes’ rental property businesses say renters are the winners since the recent Reserve Bank’s interest rate cut and the GFC.
Roxby Property Management working director Mal Rawlings said the impact of the 0.25% rate cut on rental demand was not immediately felt and did not alter demand for Varsity properties in the short term.
“It will bring more investors into the market and this will increase the number of properties available to rent in the long term,” he said.
Ascent Property Investment Property Manager Robyn Woodward said she did not know what the impact of the recent RBA’s interest rate cut would be on the Varsity rental property market, but hoped for a positive response.
“I am not sure what to expect, but I would like to think that it would increase the level of confidence in the property market - more activity in property transactions and [the] building industry,” she said.
Mr Rawlings said the GFC had impacted on Varsity Lakes’ rental market, with a shift from strong demand and short property supply, to more available properties.
This resulted in stagnant or decreased rental prices.
“[Pre GFC] some people were paying above true market value to secure a reasonable property in the area they wanted [either] close to their work, public transport or walking distance to schools,” he said.
“Post GFC has seen a shift in population and some sectors in the work force have seen a movement of families away from the area.
“The flow on effect of the GFC has increased the number of properties available and given prospective tenants the ability to be more selective.”
Mrs Woodward said the post GFC economy had slowed, particularly on the Gold Coast, where more people had moved away to find work.
“I feel that this has contributed to a higher vacancy rate on the Gold Coast than we have seen for a number of years,” she said.
However, Mr Rawlings said the trend over the past seven years was a significant increase in Varsity’s residential construction, which had caused a slight drop in rental demand further from the Market Square hub.
This had been counter balanced by the upgrade of Robina Town Centre, new businesses relocating to Scottsdale Drive area and construction of the Varsity Lakes Railway Station.
“Its future is bright and long-term demand for rental accommodation assured,” he said.
Caption: Varsity Lakes Roxby Property Management Working Director Mal Rawlings was positive about RBA’s rate cut and the GFC for renters. PHOTO: Cheryl Sterkenburg
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