First-timers save the day

Interstate investors dropping out of market

FIRST-HOME buyers are propping up some housing projects in the Gold Coast’s northern corridor because a wave of interstate investors has dried up, a new report says.

Leading property valuation firm Herron Todd White’s latest Month in Review, to be released on Tuesday, says housing estates that targeted interstate investors are struggling the most.

“Many of the housing estates in the northern fringe region have been targeted at interstate investors, but in the past six to 12 months there was a noticeable decline in the number of sales of land and building packages in this segment of the market,” the report said.

“Consequently, some developers found themselves having to rely on first-home buyers to ensure the continuity of their projects.”

Construction activity has slowed in some estates with dependence on investors while others have expanded off the back of strong demand that no longer existed.

“In recent months, some estates in Pimpama and Coomera have expanded to new stages, having sold all or almost all of the earlier stages during the period of stronger demand,” the report said.

“The new home sites appear to be impacted by the slower take up as many are left vacant for a long time.”

Herron Todd White residential director Janine Rockliff said changes to investment lending were responsible for the market flip.

But she said developers were leveraging off the fact that first-home buyers often looked for smaller lots at more affordable prices, much the same as investors did.

Despite market uncertainty and tighter lending criteria, first-home buyers seemed to be out in force.

Porter Davis Homes Queensland state manager Grant Whinnett said house hunters looking to buy their first home made up one of the biggest percentages of the market at the moment.

“More affordable house and land packages and government incentives, particularly in Queensland and the Gold Coast, are certainly a contributing factor to this trend,” he said.

The builder said it prided itself on offering first-home buyers affordable house and land packages without compromising on quality.

Kris Hanney, 31, is building his first home with Porter Davis in Maudsland.

He moved in with friends and cut back to save a $60,000 deposit, which took about a year.

“Obviously moving in with mates was a big thing but I gave up smoking, even nights out ,” he said. “You have to, if you want something you’ve got to work for it.

“Hard work pays off.”