The Gold Coast property market is on a strong growth trajectory, underpinned by solid economic conditions and population growth, according to new research by CoreLogic.
The leading property analytics firm has reported that areas of the city which feature an established mix of retail, social, transport and employment options are likely to see a strong performance.
The current uplift in market conditions, which show values have increased by 30 per cent in the five years to March 2017, are driven by Gold Coast’s significant affordability compared to southern capital cities, the report reveals.
CoreLogic Research Director Tim Lawless said centrally located Robina had emerged as one of the more popular Gold Coast areas, outpacing the wider city market on many key measures – 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.
“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.
“With strong selling conditions supporting further upwards pressure on values, Robina’s popularity looks set to continue.
“The fact homes are selling quickly, within 30 days on average, 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.”
The average rental return in Robina is also significantly higher than Sydney and Melbourne.
“The average rental return for Robina is 5 per cent for homes and 5.8 per cent for terrace homes and apartments, which is higher than most Australian capital cities,” said Mr Lawless.
“Robina’s position close to employment opportunities, transport, shopping, dining, services and lifestyle amenity plays a large factor in the returns being achieved.
“Sydney and Melbourne are showing yields under 3 per cent for homes and about 4 per cent for town houses and apartments. Considering a typical house in Sydney is 73 per cent more expensive, the Gold Coast market and in particular Robina is likely to be popular for investors.”
He said median rental rates for homes in Robina had also continued to climb, lifting 2.5 per cent per annum over the past five years to a median $560 per week, with the medium density sector recording gains of 4.4 per cent in the last 12 months alone.
After strong demand from both investors and owner-occupiers, construction is due to start next month on Robina’s latest residential project, the $170 million Vue Terrace Homes development.
The community has posted $25 million in off-the-plan sales, with 68 per cent of stage one, featuring 71 three-bedroom, plus media, dual-level terrace homes, now sold.
Robina Group sales manager Azura Griffen said the value of the homes, coupled with the prime location close to shops, restaurants, schools and transport, along with the modern design, had been key drawcards.
“The feedback from buyers, particularly those from Sydney and Melbourne, is that they can’t believe the value on offer at Vue Terrace Homes,” said Ms Griffen.
“The homes are underpinned by key property fundamentals, which is appealing to all buyers, and are also a fantastic lifestyle proposition, with everything you could need within easy reach.
“Vue Terrace Homes will also include a resort-style, elevated pool and sundeck, overlooking Robina City Parklands, giving residents a place to relax and unwind without having to leave the grounds.”
Three-bedroom terrace homes at Vue Terrace Homes start from $599,000.
A sales and display centre – including a stunning new open-air landscape gallery – is open seven days a week from 10am to 5pm at East Lane, Robina. For more information visit vuerobina.com.au or call 55 821 888.