As the number of rental vacancies in the Douglas Shire show an improvement, Newsport interviewed Alan Crossman, Principal of Property Shop Port Douglas & Mossman. He shed light on the various factors driving this positive shift.
At present, there are over twenty five rental properties listed on domain.com.au for the Douglas Shire, indicating a rise in available rentals compared to the situation twelve to six months ago.
According to Mr Crossman, the Property Shop has observed a decline in people seeking rentals at their agency’s door, which contrasts with a year ago when they often had to turn people away due to limited availability.
Mr Crossman attributes this positive shift to various factors, including recent fluctuations in the local housing market’s pricing dynamics.
With 28 years of experience in the real estate industry, Mr Crossman noted that the market itself has historically addressed long-term rental vacancy issues.
“This trend is likely to continue and it’s quicker than relying solely on authorities’ housing plans,” Mr Crossman explained.
Reflecting on the origins of the long-term rental vacancy issue in the Douglas Shire, Mr Crossman noted that it began with the easing of Covid restrictions.
“Australians were initially reluctant to travel overseas, leading to a surge in holiday rentals and higher returns compared to long-term letting,” he said.
Factors behind rental shift
Mr Crossman highlighted several factors contributing to the recent shift towards an increase in long-term rental vacancies.
“Some local businesses, who rely on seasonal staff, acquired property for their employees,” he said. “We manage a few properties owned by such businesses.
“Some homeowners have also chosen to rent out spare rooms to accommodate seasonal workers.
“Another factor is that this year’s holiday market is decent but not as strong as last year. As a result, some property owners may have returned to long-term renting
“Additionally, housing prices have risen around twenty percent on average in the last three years, in line with the national average.
“Marketwise, this price increase was anticipated and overdue, given Port Douglas’ popularity.
“As a result rents have increased, and property owners are considering long-term rental as a viable option more often, with reasonable associated costs and easy management”.
A vital focus on rentals
With a portfolio of approximately 400 rental properties, Mr Crossman said that Property Shop regards the management of these rentals as being just as vital, if not more so, than their sales division.
“The reliance on real estate agencies and their value cannot be understated,” he said.
“Our property management is overseen by a highly experienced team of four individuals.
“Monica Stievano, Senior Property Manager, has been with us since we took over Property Shop in 2006.
“Lars Pedersen, who oversees the Mossman office, has also served as a dedicated Property Manager for fourteen years.
“Alongside them, Carmel Twomey and Belle Moffett bring invaluable expertise, further bolstering the Property Management team.
“We dedicated as much effort to our rental properties as we do with our sales department, because of its paramount importance. Much like food, rentals are essential.”