Gold in them thar hills

Investors told to look inland for rising value suburbs

INVESTORS should head for the hills, according to a new report, which predicts prices in Upper Coomera and Nerang will rise faster than those in beachfront suburbs.

The Terry Ryder Price Predictor, based on trends in sales volumes, describes the Gold Coast as a “tale of two cities”.

“(It’s) the highrise suburbs and genuine residential suburbs,” the report says.

“We urge investors to avoid the former and concentrate on the latter.

“Many of the inland housing areas of the Gold Coast have strongly growing markets and will deliver price growth. Our top-30 list includes Ashmore, Carrara, Highland Park, Nerang and Upper Coomera.”

Jasmin Young and her partner Corey Gerhardt, who have built their first home at Upper Coomera, said they chose the suburb because of its affordability and strong capital growth opportunities.

“We decided to build at Highland Reserve in Upper Coomera because it was a happy medium between Brisbane where my partner works and the southern Gold Coast where I work,” Ms Young said.

“The fact that Upper Coomera continues to show strong signs of price growth was a major deciding factor in our decision to build there.” REIQ Gold Coast zone chairman John Newlands said Ashmore, Carrara, Highland Park, Nerang and Upper Coomera still offered affordable housing.

“You can buy a house for $450,000 to $550,000 in those suburbs,” he said.

“It’s just not possible for many in a lot of the beachside suburbs so it really is affordability which will drive those suburbs.”

The news is not all positive for the Gold Coast with the Sunshine Coast expected to overtake the Gold Coast property market’s growth.

“The trend suggests the Gold Coast is winding down – it surged throughout 2015 and the early part of 2016, but the number of growth suburbs has dropped from 25 six months ago to 20 three months ago to 14 now,” the report states.

“We continue to urge cau- tion about the Gold Coast highrise apartment markets because of the alarming history of boom-bust scenarios, poor capital growth record and looming prospect of oversupply.”

But Mr Newlands said he was surprised by the predicted trend.

“I really do feel that the Gold Coast is growing,” Mr Newlands said. “We rely heavily on tourism and hospitality but we also have construction and manufacturing to the west of the Coast.”