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Gold Coast shows first signs of a wobble as house and unit prices fall

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Gold Coast shows first signs of a wobble as house and unit prices fall

Just a little luxurious: 31 Buccaneer Court, Surfers Paradise. Photo: Supplied

The Gold Coast has shown its first sign of a wobble, with the median house price falling for the first time in five years.

The latest figures from the Domain Group’s house price report released on Thursday reveal the median house price has fallen by 0.2 per cent over the past six months to $618,000. The last the time house prices moved backwards over a quarter was September 2013 when they declined 0.6 per cent.

Although small, the negative movement is in stark contrast to last year’s results which put the Gold Coast up in lights; the glitter strip outperformed every other region in Queensland last year, growing by nearly 8 per cent.

Local agents say they are not surprised but stress it is a “blip” resulting from the Commonwealth Games, rather than a trend which will continue.

“Most of the local buyers went away during the (Commonwealth) Games, which also happened to coincide with school holidays,” says Kollosche Prestige principal Michael Kollosche.

“Once you factor that in, it’s probably the reason we have that slight trend downwards in price.”

Gold Coast shows first signs of a wobble as house and unit prices fall
The Commonwealth Games has put a spotlight on the Gold Coast but a strong economy has put it in good stead long after the Games are over. Photo: AAP – AP Picture

Jesse Willcox, of Lambert Willcox, says his agency was prepared for a slower quarter.

“We certainly anticipated this slow down after the Games because so many of our buyers are local. The mass exodus of locals from the Coast was well publicised,” he says.

“That being said, we’ve just had a record month and sold $10 million worth of property in the past two weeks, so go figure.”

Gold Coast shows first signs of a wobble as house and unit prices fall
Gold Coast units have fallen by 1.2 per cent over the past six months. Photo: Glenn Hunt

It had been nothing but good news for the Gold Coast economy and, in turn, the local property market of late. Recently it was revealed a $30 billion pipeline of private and public development would be rolled out on the Gold Coast over the next decade, putting paid to criticisms it would suffer a post-Commonwealth Games slowdown.

And last week Domain reported more than $20 million in luxury Gold Coast property had sold since the the Commonwealth Games wrapped up, including Australia’s most expensive golf course-fronted house and a record $11.6 million Hedges Avenue beach home.

Moreover, the Gold Coast’s median house price is still up 3 per cent on the same time last year.

Gold Coast shows first signs of a wobble as house and unit prices fall
The Gold Coast property market is likely to remain subdued in the short term, according to Dr Nicola Powell. Photo: michellesmith@fairfaxmedia.com.au

Domain data scientist Dr Nicola Powell says while the prospects for the Gold Coast market are still strong, it’s likely growth will remain subdued in the short term.

“We’re not going to see the bomb fall out of the property market by any means,” she says.

“What’s important is how the economy transitions away from the Games. We haven’t seen negative movement like this for the Gold Coast housing market since 2013 — whether that continues or picks up again remains to be seen.”

Gold Coast shows first signs of a wobble as house and unit prices fall
Infrastructure and residential development will continue to keep the Gold Coast’s property market on track, experts say. Photo: Glenn Hunt/Fairfax Media

Source: www.domain.com.au

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Market Place

Queensland’s population hits 5 million people today

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Queensland's population hits 5 million people today
PHOTO: Is this Queensland’s 5 millionth person? Cordy Kerr-Kennedy was born yesterday in Townsville. (ABC News: Mark Jeffery)

Queensland’s population has tipped the 5 million mark today, Premier Annastacia Palaszczuk has told State Parliament.

Ms Palaszczuk said several expectant families were on standby to welcome the state’s five-millionth resident.

“Somewhere today a brand new mum and dad will be eager to meet their new arrival,” she told the house.

“The whole family will want to know: is it a boy or is it a girl? And the doctor will say, ‘congratulations, it’s a Queenslander’.”

Ms Palaszczuk said the two main drivers of the increase were migration growth, particularly from New South Wales, and from 60,000 babies being born in the past year.

Queensland's population hits 5 million people today
PHOTO:
 The state’s five-millionth resident was born today.(ABC North Queensland: Nathalie Fernbach)

“Overseas and interstate migration is up by 50,000 people in the past year, 19,000 came from interstate … more than 12,000, or 230 a week, move from New South Wales to Queensland,” she said.

ABS data also revealed the fastest and largest-growing area in Queensland in 2016-17 was Pimpama on the Gold Coast, which grew by 3,000 people.

Large growth also occurred in Jimboomba on Brisbane’s south side and in North Lakes — a suburb north of the city — which both increased by 2,100 people.

Coomera on the Gold Coast and Springfield Lakes in Ipswich also experienced large growth up 1,400 people.

The State Government’s population counter gives a “synthetic estimate” of the number of current Queenslanders, assuming a total population increase of one person every 6 minutes and 22 seconds.

Earlier this year the Australian Bureau of Statistics (ABS) said Queensland’s population was growing at 1.7 per cent and was projected to tick over to 5 million in May.

ABS data released in March also revealed Brisbane was one of the country’s fastest-growing cities and had increased by 48,000 in 2017, hitting 2.4 million people.

Queensland's population hits 5 million people today
PHOTO: The ABS estimated Queensland’s population was growing 1.7 per cent a year. (AAP: Dan Peled)

ABS demography director Anthony Grubb said the state’s population had “come a long way” in the last century.

“In 1901 the population was half a million; a tenth of what it is today… it took 37 years to hit the 1 million milestone in 1938 and another 36 years to reach 2 million in 1974,” he said.

But Mr Grubb said population growth “picked up the pace” after that, taking just 18 years to reach 3 million then only another 14 years to hit 4 million in 2006.

Queensland could be leading growth state in future

Population demographer Dr Elin Charles-Edwards said although Queensland is not currently the fastest growing state, it is possible it could top the leader board later down the track.

‘Not in the short-term, but Queensland is coming up off a relatively subdued growth so perhaps we might be entering an era of more rapid growth,” she said.

Dr Charles-Edwards said the challenges that generally come with increased population could be managed in Queensland.

“As long as we keep up and don’t take our eye off the ball we can continue to absorb quite high levels of growth… but really it’s keeping up with the infrastructure that’s the key challenge,” she said.

Dr Charles-Edwards said it was important to note some parts of the state, particularly in western Queensland, were experiencing population decline.

“While the south-east corner is growing and also many Indigenous communities are growing, other parts of the state are shrinking,” she said.

“Perhaps we could do more to encourage people to move outside the south-east corner.

“If we were able to work out some way to decentralise our population, growth a little bit further up into the northern regional centres, I think that would benefit the growth of south-east Queensland.”

Source: brisbaneinvestor.com.au

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Gold Coast beachside unit block fetches more than $2m at auction

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Gold Coast beachside unit block fetches more than $2m at auction

109 Seagull Ave, Mermaid Beach.Source:Supplied

A MERMAID Beach unit block attracted buyers from as far as New Zealand and Japan when it went under the hammer on the weekend.

But a local buyer made the winning bid, snapping up the four beachside units at 109 Seagull Ave for $2.105 million.

Marketing agent Peter Howarth, of John Henderson Professionals Mermaid Beach, said there were 18 registered bidders on the day with two phoning from overseas.

Gold Coast beachside unit block fetches more than $2m at auction

109 Seagull Ave, Mermaid Beach.Source:Supplied

“More than 80 people came to watch the auction, which was conducted by Mark MacCabe from Apollo Auctions, and there was plenty of spirited bidding before it became a battle between two parties,” he said.

“The winning bidder was a long-time Gold Coast resident, who owns several properties in the region.

“The purchaser intends to initially land bank while they complete a feasibility study to determine the best development option for the property.”

Gold Coast beachside unit block fetches more than $2m at auction

109 Seagull Ave, Mermaid Beach.Source:Supplied

Mr Howarth said the 558sq m property was considered large for Mermaid Beach with a 32m frontage to Heron Ave and 17m frontage to Seagull Ave.

It now has four strata-titled units.

“Subject to council approval, you could design four, three-storey villas on the site…,” he said.

The property is in a prime position, 150m from the beach and close to the popular Nobby Beach dining precinct.

Source: www.news.com.au

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Budget to rein in property prices with measures to increase housing supply

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Budget to rein in property prices with measures to increase housing supply

Sydney home prices have fallen for nine straight months, helped by Budget measures adopted last year.Source:News Limited

TREASURER Scott Morrison’s Budget offered little for home seekers wanting an immediate boost to their prospects of buying property but buyers will benefit from some key measures in the long run.

FEARS this year’s Federal Budget would include changes to negative gearing or capital gains tax on homes sales have proved unfounded and Treasurer Scott Morrison has instead taken a largely hands off approach to the housing market.

The Budget offered little in the way of major announcements for homeowners, investors or prospective buyers, with much of the real estate focus on measures to better increase housing supply.

The lack of major property tax changes suggested the Government felt confident last year’s Budget measures to crack down on investment activity and foreign spending had the desired affect of calming home prices, particularly in Sydney and Melbourne.

Median home prices have fallen for the last nine months in Sydney and the last five in Melbourne, the latest CoreLogic research showed.

First homebuyer participation in the housing market, meanwhile, has reached a five-year high nationally.

Budget to rein in property prices with measures to increase housing supply

The Budget included measures to help increase housing supply.Source:News Limited

By leaving the current property taxing system largely untouched, Mr Morrison would have calmed the concerns of much of the real estate and development industry, who had feared the government might cave into strong pressure to overhaul negative gearing.

Mr Morrison also offered another surprise by leaving capital gains charges for sellers untouched.

There had been earlier speculation the Budget might modify the capital gains system as a way to encourage more downsizers to sell up their homes and unlock valuable housing supply.

Mr Morrison has instead offered other measures to boost housing supply — a key determinant of prices.

This included a commitment to establish the $1 billion National Housing Finance and Investment Corporation and release more land suitable for housing.

The Budget’s allocation of billions of dollars in transport infrastructure upgrades would also help unlock cheaper housing in further-flung regional areas by making them more accessible, according to realestate.com.au chief economist Nerida Conisbee.

She said the Budget commitment to spend $1 billion on an Urban Congestion Fund to reduce traffic, along with a $3.5 billion Roads of Strategic Importance initiative, would be key measures in boosting demand for cheaper regional housing.

“Traffic traditionally influences liveability and discourages people from living in further out areas, so this may have an eventual impact on affordability,” she said.

Budget to rein in property prices with measures to increase housing supply

Transport upgrades in regions such as the Gold Coast may help buyers get easier access to cheaper housing in further flung areas.Source:News Corp Australia

Other major projects with the potential to draw more house hunters into cheaper regional areas included the Federal Government’s funding of the first stage of the North South Rail Link in Western Sydney, a commitment of up to $5 billion to the Melbourne Airport Rail Link and $3.3 billion in continued upgrades of the Bruce Highway in Queensland.

Among one of the only real estate cuts was a drop in funding to state affordable housing services. The Commonwealth committed $1.6 billio n this year to support the services, a roughly $295 million drop from last year’s Budget.

Real Estate Institute of Australia president Malcolm Gunning said the Government doing nothing to change negative gearing represented an “ideal” outcome for the housing market, considering the stringent changes introduced last year to quell investor demand.

“The Government already has its hands around the golden goose. It needs to be careful not to strangle it,” he said.

Source: www.news.com.au

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