TIGHT RENTALS: Douglas rental home hunters advised to plan ahead carefully

PEAK SEASON

David Gardiner

Journalist

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“Renters need to sensibly plan in advance in order to not miss out.” Pic: Raine & Horne Port Douglas

There are further concerns that rental property supply in Douglas Shire will not keep up with demand as the traditional busy tourism season approaches, but ‘careful planning’ by renters is the advice being offered by seasoned agents in the region. 

The number of rental vacancies in the local market at any one time have hovered between 30 and 50 so far this year – and already over the past fortnight, demand has started to outstrip supply as the peak season, starting from the Easter weekend, nears.

Each property for rent typically attracts three to five applications on average, and sometimes prospective renters find they need to apply for more than one house or unit at a time to ensure they eventually find accommodation.

“We encourage this to a degree,” Ray White’s Steve Doble told Newsport. “That’s part of me referring to ‘sensible planning’ by the prospective tenant.”

Mr Doble said at just over 30 rentals currently on the market, the number might seem low but it’s a still a far cry from critical shortages in 2022, when there were “less than 10 available rental properties available at any time, every month, of any type.”

The situation only began to improve last year when property availabilities hit double figures again.

Rental affordability 

One-bedroom units start at around $265 per week, and two-beds at $350. The starting price for a three-bed unit or house is from $430pw and a four-bed, from $550.

Mr Doble said agents consider the ‘affordable’ rent level for say, a couple or two people both on average incomes, at about $650 per week; $350-$400pw for a single renter and for a family of two adults and two kids, around $700-$750pw.

“Historically industry affordability modelling aims at 30% of income going to rent,” Mr Doble said. 

“Locally this has perhaps been 35%, but currently, especially for houses for families – two adults, two kids – this is approaching 40% which is an affordability stretch. Note - these are all approximation figures!”

No new housing stock in sight

The rental market in Douglas is expected to remain challenging during peak season this year, and beyond, with little or no new housing ‘stock’ on the horizon to help ease the demand.

“The market could sustain easily double if not more than the current supply,” Mr Doble said. 

“In many categories – either price, location or even house vs unit – tenants have very little choice, for example, weekly rental amount, younger property, closer to where they want or need to be, house vs unit, yard vs no yard (pets). 

“Probably at max a two per cent vacancy rate (currently). Four per cent usually allows a bit more choice.”

More rental squeeze in peak season

The best advice for prospective renters is: plan well ahead. 

“Despite a softer tourism season forecast – due to general market conditions still balancing post-COVID and our shire's poor water supply, a growing reputation outside of our direct region now – the rental market will remain tight with stock availability, demand is likely to outstrip immediate day to day demand. 

“Renters need to sensibly plan in advance in order to not miss out.”

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