Sum­mer mar­ket heats up on Coast

South­ern buy­ers are flock­ing to the Gold Coast mar­ket, with fore­casts sug­gest­ing the big­gest sum­mer sales pe­riod in a decade, write Michelle Hele and Kylie Davis

The Courier-Mail - Property - - REALESTATE INSIGHT -

THE lower Aus­tralian dol­lar, re­vi­talised tourism and in­fra­struc­ture in­vest­ment are un­der­pin­ning re­newed buyer in­ter­est in the Gold Coast prop­erty mar­ket, which is ex­pect­ing its big­gest sum­mer sales pe­riod in 10 years.

Fig­ures from RP Data show that the mar­ket is of­fi­cially off the bot­tom with an in­crease in hous­ing val­ues of 3.3 per cent over the past 12 months.

An anal­y­sis of the Gold Coast and greater Tweed area by PRD­na­tion­wide re­search pre­dicts the Glit­ter Strip may be about to emerge into a pe­riod of sus­tained growth. The re­search backs agent ob­ser­va­tions that the mar­ket is primed to en­ter a cy­cle of growth not seen since be­fore the global fi­nan­cial cri­sis hit in 2007.

PRD­na­tion­wide re­search an­a­lyst Jake Bea­z­ley said a soft­en­ing Aus­tralian dol­lar and low in­ter­est rates had helped re­new buyer con­fi­dence. He said ven­dor ex­pec­ta­tions had dropped into line with mar­ket val­u­a­tions and this had sparked a resur­gence in the mar­ket.

“In­creased com­pe­ti­tion for lim­ited stock is al­ready start­ing to drive price ap­pre­ci­a­tion in some sub­ur­ban lo­ca­tions,” he said.

The Gold Coast has en­joyed a mas­sive in­fra­struc­ture in­vest­ment spree from both the gov­ern­ment and pri­vate sec­tor. Nearly $10 bil­lion is be­ing in­vested on the Gold Coast in the lead-up to the Com­mon­wealth Games in 2018 in­clud­ing a $1 bil­lion light-rail net­work, the $1.76 bil­lion Univer­sity Hos­pi­tal and more than $4 bil­lion in high­way im­prove­ments north and south.

This sum­mer was also one of the strong­est for tourism due to a $15 mil­lion mar­ket­ing cam­paign that en­sured record oc­cu­pancy rates.

“The in­vest­ment in in­fra­struc­ture will con­tinue to gen­er­ate em­ploy­ment op­por­tu­ni­ties in not only the con­struc­tion sec­tor, but in health and ac­com­mo­da­tion ser­vices, and the weak­en­ing dol­lar should be­gin to pro­vide some sup­port for tourism – all of which will be pos­i­tive for the lo­cal real es­tate in­dus­try,’’ Mr Bea­z­ley said.

The chief ex­ec­u­tive of the Ray White Surfers Par­adise Group, An­drew Bell, said ris­ing prop­erty prices in Syd­ney and Mel­bourne meant the Gold Coast was again on the radar of in­ter­state in­vestors.

“With af­ford­abil­ity such an is­sue in the south­ern states, Mel­bourne and Syd­ney buy­ers are again look­ing at the Gold Coast mar­ket and re­al­is­ing they can buy a prop­erty that’s big­ger than they can af­ford at home, has a good rental yield and is at a rate they can af­ford,” Mr Bell said.

“About 60 per cent of our buy­ers come from in­ter­state or over­seas.”

While most of the coun­try is in shut­down mode in Jan­uary, each year the Ray White Surfers Par­adise group hosts The Event – the Magic Mil­lions of real es­tate – fol­low­ing the Aus­tralia Day weekend. It is recog­nised as the largest sin­gle prop­erty sale in the coun­try, with 116 auc­tions al­ready sched­uled for Jan­uary 27 and an ad­di­tional 15 pres­tige prop­er­ties go­ing un­der the ham­mer on Jan­uary 30. A host of other lux­ury prop­erty is also for sale by ex­pres­sion of in­ter­est and pri­vate treaty.

Mr Bell said rental va­cancy rates were cur­rently about 2.3 per cent, en­sur­ing qual­ity rental stock was in de­mand and able to com­mand good rents.

PRD­na­tion­wide South­port prin­ci­pal Ger­ald Adam said he was field­ing calls from in­ter­state in­vestors as they con­sid­ered the Gold Coast a more af­ford­able op­tion com­pared with south­ern cap­i­tal cities.

“Buy­ers are act­ing de­ci­sively, they know the mar­ket bot­tom is long gone but good value is still there,’’ he said.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.