The Gold Coast has been highlighted in a recent report, as one of the country’s top performing areas, with a significant increase in prices and sales volumes over the past year.
A recent report on Australia’s major regional markets has highlighted the Gold Coast as one of the country’s top performing areas, with a significant increase in prices and sales volumes over the past year.
The report, released by CoreLogic in May, shows the Gold Coast’s median house price increased 7.2% to $563,500 and 4.8% to $370,000 for apartments over the year to March 2016.
The number of sales is also up 7% and current sales activity is 24% above the five-year average for the city. The average number of days it takes a property to sell has also fallen by four days for both houses (70 days) and apartments (87 days).
There’s also good news in the rental market, with weekly rents up 4.2% to $500 per week for houses (an average yield of 5.1%) and 5.4% to $390 per week for apartments (average yield now 5.9%).
I’ve been talking about the Golden Triangle in South East Queensland for some time now as the pick of the Australian markets, and for different reasons, I see Brisbane, the Gold Coast, Sunshine Coast and Toowoomba being primed for good growth. The 2018 Commonwealth Games will provide an even greater boost to the Gold Coast in particular.
Demand on the Gold Coast is higher due to a lack of stock; more Chinese investors, more interstate investors (particularly from Sydney and Melbourne), and the generation of more new jobs mainly for Commonwealth Games infrastructure and many new residential apartment projects.
The picture right now is rosy, but the future picture is even better.
This is a city that suffered tremendously during the GFC. But in property, what goes down must eventually go back up if the fundamentals are good. And on the Gold Coast, the fundamentals making this an appealing market are improving every year.
Last year, the country’s most authoritative social demographer, Bernard Salt, produced a report called ‘Beyond the Horizon’. The reports seeks to forecast what the Gold Coast will look like by 2050.
Right now, it’s the sixth largest city in Australia with more than 600,000 residents. The population is expected to double in a city that is only 70km from north to south. What will that do to property prices?
This is a city ‘under renovation’ in many ways, the most important being the expansion of its economic base, so it will not be so heavily reliant on retail, tourism and construction industries, which have made the city vulnerable during economic downturns.
But a change is coming with the strategic development of a broader economic base focused on knowledge industries such as health and education.
Knowledge industries are important because it is envisaged that knowledge workers will have more scope to choose where they want to work and live, and the Gold Coast’s lifestyle and relative affordability will be a major drawcard for highly-paid, highly-skilled expert workers.
The city’s 200-hectare Health and Knowledge Precinct is rapidly growing. It incorporates the new Gold Coast University Hospital, research and allied health facilities; and a master planned mixed use community. It is also home to Griffith University, ranked among the world’s top 5% of universities with $500 million invested in recent years to improve its facilities.
Tourism will remain a huge sector for the Gold Coast. In 2013, the city was accommodating 62,000 visitors per night. By 2050, Mr Salt projects the city will host 99,000 on average per night.
Construction should also remain strong for two reasons – the ongoing desire by Chinese and local developers to build along the coast; and the need for more houses in the greenfield suburban corridor between Mudgeeraba and Pimpama.
The Gold Coast of the future will be an international city, with millions already being invested into the Gold Coast Airport to accommodate greater demand and more international routes.
China is the Gold Coast’s No. 1 source market for foreign investment and international tourists. The city is welcoming Chinese interest, with major Chinese developers such as the Wanda and Ridong groups building on the coast and the local council investing $6.8m to build a Chinatown in Southport.
According to Mr Salt, the number of Asian-born residents on the Gold Coast is projected to quadruple by 2050.
All in all, there are exciting times ahead. The Gold Coast, despite recent price growth, is still a ‘Buy’ market in my view. There is plenty of opportunity, especially for cashed-up buyers from Sydney and Melbourne, to buy well on the Gold Coast for investment or a wonderful lifestyle change.
Original article published at www.switzer.com.au by John McGrath 14/6/16
Sydney Baby Boomers drive real estate boom in Brisbane
A MIGRATION of cashed-up Baby Boomers from Sydney will lead to a real estate boom in Brisbane, according to property investment experts.
A Property Investment Professionals of Australia (PIPA) members’ survey revealed that Brisbane was regarded as the best capital city for property investment.
Of the members who participated in the survey, 46.15 per cent rated Brisbane as the best capital for investment prospects in 2018.
PIPA chairman Peter Koulizos said the Queensland capital was expected to boom as a side effect of the Sydney property boom happening when Baby Boomers were looking at retiring.
“People that have a lot of equity in their home can retire or semi-retire by selling up and buying a home in southeast Queensland,” Mr Koulizos said.
And with the median house price in Sydney more than $1 million, he said this would give them a sizeable pile of cash left over after buying a home further north.
“That is because there is such a big price difference between Brisbane and Sydney,” he said.
A PIPA survey from last year also rated Brisbane as the best capital city in which to invest, but in the past 12 months the average house price has increased by just 2.9 per cent.
Mr Koulizos said a boom would come eventually, but picking the exact point was tricky.
“Property booms take a long time to gather momentum, I doubt you will see double digit growth in Brisbane this year but it may be different next year,” he said.
Melbourne was the next best investment option according to the survey, with 19.23 per cent believing it was a good place to invest, followed by Perth at 15.38 per cent.
Originally published: brisbaneinvestor.com.au
The property clock strikes big for hot spot areas
9 Lion St, Ipswich. Picture: realestate.com.auSource:Supplied
DESPITE last month’s previous lacklustre values, analyst Michael Matusik has identified the areas on the upswing.
While property values remained fairly stagnant during February, property analyst Michael Matusik has revealed where the housing market is on the upswing.
Mr Matusik’s latest property clock for houses, has Brisbane, Gold Coast, Logan, Redlands, Sunshine Coast and Gympie all in upswing.
He said a market’s position on the property clock was based on the strength and direction of key indicators including sales numbers, price and rent, demand and how much new supply there was.
His latest Matusik Missive also listed Ipswich, the Fraser Coast and Noosa markets as heading into upswing territory.
Ipswich has many beautiful homes, often at prices well below what something similar would cost in Brisbane’s suburbs. A four-bedroom home at 9 Lion St,Ipswich is listed for $879,000.
The land the home sits on was bought in 1904 from the family of the then Ipswich Mayor Mr Pettigrew. A home was built on it in 1907.
The period home has 3.5m high ceilings, VJ walls, period window, and timber floorboards which have all been restored.
The home has two new bathrooms, a large separate dining area and study. It is listed through Steve Athanates of NGU Real Estate Ipswich.
On the Gold Coast at Robina, 196 Easthill Drive is listed for more than $850,000.
The three-bedroom home is within the Glades Golf Community.
It has formal and informal living and dining areas, and an outdoor entertainment area with a swimming pool nearby.
It is listed through Ian and Linda Mills of McGrath – Palm Beach.
On the Sunshine Coast at Noosaville a home at 15 Bluebell Court is listed for offers of more than $740,000.
The three-bedroom home is in a cul-de-sac in a residential pocket bordered by the Lake Doonella Reserve.
The single-level home has open plan living and dining areas. An outdoor area overlooks the pool and reserve at the rear of the property.
It is listed through Tansy Grant and Justin Sykes of Ray White – Noosa.
Originally published: brisbaneinvestor.com.au
Where to invest: These are the suburbs where house prices are tipped to grow
Annaliese Bullock, 27 with husband Jared, 27 and daughter Lyla 5 months sold their Burpengary before it even went on the market. Picture: AAP/ Megan Slade.Source:News Limited
THESE are the rising stars of Brisbane’s property market, the 27 growth suburbs investors need to know about.
INVESTORS chasing capital growth in Brisbane are spoiled for choice, with a new report identifying 27 suburbs where house prices are tipped to rise — and more than half of them have a median price of less than $500,000.
Property analyst Terry Ryder has identified the rising stars of the property market — where sales are rising steadily and house prices are set to follow. And they’re not the inner-city, blue chip suburbs you might expect.
The report examines sales activity, rather than prices, to determine the best and worst local government areas for property market growth.
The Moreton Bay region has 10 rising star suburbs where sales have been steadily increasing including Banksia Beach, Bellmere and Deception Bay.
Quarterly sales in Burpengary have risen from 69 to 97 in the past six quarters, while at Sandstone Point, sales are up from around 40 per quarter to 55 to 60.
Homes are selling so fast in the area that Jared and Annaliese Bullock just sold their four-bedroom house in Burpengary for $475,000 before they had a chance to even put it on the market.
Mrs Bullock said she contacted an agent at RE/MAX Ultimate, who brought through a couple of potential buyers and the offer was made within days.
But she’s not too surprised, given how close the suburb is to the train station, shops and the highway. The couple also recently bought two units as investment properties in nearby Caboolture. Acacia Ridge, Algester, Eight Mile Plains, Kuraby and Sunnybank Hills are also predicted growth areas.
“It’s the affordable, outer areas that have got the most activity at the moment,” Mr Ryder said.
“The infrastructure is pretty good, with train links to the centre of the city, and there’s lots of shopping centres and good amenities.”
“The sweet spot is to be about 200 metres from a school, a shopping centre and a train station.”
SUBURBS WHERE SALES ARE RISING
Acacia Ridge $402,000
Banksia Beach $550,000
Caboolture South $290,000
Deception Bay $345,000
Eight Mile Plains $788,000
Ferny Grove $595,000
Kippa Ring $415,000
Mt Warren Park $390
Sandstone Point $420,000
Sinnamon Park $720,000
Sunnybank Hills $660,000
Victoria Point $522,000
Originally published: www.news.com.au
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