The October REIQ journal has identified the Gold Coast property market as being strong and dynamic, driving solid, sustainable capital growth for property owners.
The journal reports that the Gold Coast median house price grew on average 6.8 per cent over the 12 months to June 2017, compared with Brisbane’s 3.6 per cent.
Clear Island Waters was the top performing Gold Coast area recording a staggering 24% price growth. The high quality homes on offer paired with the geographically central location of Clear Island Waters, which has city-scale amenity in neighbouring Robina, has seen it become a highly sought after address.
Robina itself has also been identified as a Gold Coast property hotspot by leading property analytics firm CoreLogic reporting that Robina is outpacing the wider city market on every key measure – recording a price premium, higher rates of capital gain, higher rental rates with attractive yields and strong selling metrics.
The report found Robina average house values to March 2017 were 8.4 per cent higher than the wider Gold Coast while the terrace home and apartment sector posted an average 11.5 per cent price premium.
CoreLogic Research Director Tim Lawless said “This premium indicates buyers place a high value on housing in Robina, which can also be seen in the strong rate of capital gain, with house prices increasing by 5.2 per cent per annum over the past five years,” said Mr Lawless.
He said that Robina’s upward trend was set to continue, with strong selling conditions supporting further upwards pressure on values.
“The fact homes are selling quickly, within 30 days, and vendors are applying minimal discounts – just 3.6 per cent for homes and 3.7 per cent for other properties – suggests buyers are acting quickly to secure property in Robina,” he said
The ongoing growth being experienced across Gold Coast is reported as being sustainable due the value of what is on offer here with REIQ’s CEO Antonia Mercorella quoted as saying “Growth throughout South East Queensland is based on an improving value proposition, which means it is reliable, sustainable capital growth.”
The October McGrath Report also described the Gold Coast market as affordable, safe, steady and reliable.
Now established, this growth and momentum looks set to continue for some time yet as we head into the 2018 Commonwealth Games year.
Taking Gold Coast City to the world
The 2018 Commonwealth Games will showcase Gold Coast City to a live global television audience of 1.5billion people and the city will secure positive and lasting benefits from the event.
With the games year now quickly approaching, the impact of the major event on the property market is starting to become visible.
As well as increased exposure and awareness, Gold Coast City will also benefit from a $2billion injection into the local economy and significant infrastructure investment across the city.
As reported in the PRD Commonwealth Games residential property impact report, the Gold Coast property market is already experiencing positive spill-over multiplier effects from the announcement of the event and the benefits are predicted to continue well beyond games year.
South East Queensland’s growth momentum
Southeast Queensland house prices are tipped to grow by up to 20 per cent, driven by interstate investors looking for better growth opportunities than Sydney and Melbourne can provide.
As reported in the McGrath 2017 report, not only have many buyers been priced of these southern markets, it now seems that these markets are losing steam and may even be starting to decline.
Veteran real estate agent John McGrath told The Courier-Mail this week that Queensland was only just over halfway through the current property cycle and stood to benefit from the slowdown starting to grip the southern capitals.
“We’re very bullish in your part of the world,” Mr McGrath said.
“There’s no doubt in my mind there will continue to be growth in southeast Queensland.”
South-East Queensland continues to offer outstanding opportunity for growth with houses and apartments values along the Brisbane to Gold Coast corridor rising by 5.7% in FY2016, a 2.2% increase on FY2015.
As well as being attracted to the potential capital growth opportunities on offer, residents from southern states are looking to relocate to the sunshine state to enjoy the enviable lifestyle on offer, driving an upswing in population growth across Queensland.
Southeast Queensland is the epicentre of population growth for Queensland, which is one of the fastest growing states in the nation. This is due to many factors including interstate migration, which has recorded an average increase of 12.3 per cent each quarter since March 2015, and natural increase which, over the last five years, has represented the largest population driver of this prosperous state.
Sources: REIQ Journal October 2017, McGrath Report October 2017, PRD 2018 Commonwealth Games Residential Property Impact Report, Urbis Robina Outlook November 2017, Courier Mail article published 30 October 2017 “Southeast Queensland house prices to grow by up to 20pc: McGrath”
Southeast Queensland property prices growing faster than those in Brisbane and Sydney, read full article here.
Southeast Queensland house prices to grow by up to 20 per cent, read full article here.
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