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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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Gold Coast among the most expensive regional QLD cities to rent property

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Gold Coast among the most expensive regional QLD cities to rent property

A new report reveals the Gold Coast is one of the most expensive regional Queensland cities to rent property.

RENTERS on the Gold Coast are forking out some of the highest prices for properties in regional Queensland.

A new report released by non-government social housing provider, Compass Housing Services, reveals the Gold Coast has the second highest median rent in regional Queensland.

The report lists the median rent each week on the Coast as $440, meaning tenants would need a weekly income of $1467 to be able to afford it.

While also in the top five of least affordable areas are; Noosa at $457.50, Gympie at $285, Hervey Bay at $320 and the Sunshine Coast at $430.

REIQ Gold Coast zone chairman Andrew Henderson said one of the main factors affecting prices was the lack of properties available for rent as owner-occupiers were the region’s dominant buyers.

He said the fluctuating number of tourists and transient workers also contributed to the property shortage as well as the type of those available, while the slow release of land for new housing estates put added pressure on the rental market.

“The Gold Coast has got some unique factors,” Mr Henderson said.

“That diversity is also a bit of a challenge when trying to break down those figures.”

Latest data from the Residential Tenancies Authority shows suburbs in the 4217 postcode — including Benowa, Bundall, Main Beach and Surfers Paradise — were the most expensive areas to rent with $850 the median price per week for a four-bedroom house.

That is $120 more than the same period the previous year.

The cheapest place to rent was the 4209 postcode — which included Coomera, Pimpama and Willow Vale — with $179 the median price per week for a one-bedroom flat.

Gold Coast among the most expensive regional QLD cities to rent property
Coomera, Pimpama and Willow Vale are among the cheapest suburbs to rent on the Gold Coast.

Lucy Cole Prestige Property managing director Lucy Cole said areas in the northern corridor were cheaper because there were plenty available.

“Because there’s so much competition up there, (rent) is lower,” she said.

She said quality homes at the heart of the city were harder to find and offered the best of the coast lifestyle, which made them more expensive.

“We know that there’s a scarcity of good properties,” she said.

“The size and (number of) rooms also plays a big part.

“If it’s a multimillion-dollar home … that’s where you’d expect to pay more.”

CoreLogic research analyst Cameron Kusher said while house value growth was slowing across the Coast, rental growth looked to remain strong.

“This is potentially reflective of the increasing number of residents moving to the region but they are choosing, at least initially, to rent rather than buy,” he said.

“Rental growth is expected to continue along at a fairly strong pace, especially considering that migration to southeast Queensland remains strong.”

Source: www.realestate.com.au

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Market Place

Maturing Gold Coast Apartment Market No Longer ‘Boom and Bust’

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Maturing Gold Coast Apartment Market No Longer ‘Boom and Bust’
The apartment market on the Gold Coast, long known for its ‘boom and bust’ reputation, has reached a healthy balance according to property experts.

Real estate firm Knight Frank have underlined a market in transition, becoming more solid and reliable due to continued population growth and changes in market focus in recent years.

The latest Knight Frank Australian Residential Development Review 2018 found apartment stock on the Gold Coast is being built to cater more for owner-occupiers, with a move towards larger apartments with more bedrooms.

It found two-bedroom apartments have been favoured in developments built between 2014 and 2017, making up 43 per cent of total stock.

Banks and the developers they lend to have also been careful not to oversupply the market with product as has been the case in previous cycles.

A shift towards smaller developments has also created less supply enabling buyers more time to make decisions, and this, along with growing long-term demand, has led to more stability.

Maturing Gold Coast Apartment Market No Longer ‘Boom and Bust’
North Residences, at 296 The Esplanade, features seven beachfront apartments in a residential-only boutique building.Image: Bureau Proberts

“While there will always be a market for the larger developments because of the amenity they provide, the emerging trend for smaller developments has resulted in a more balanced market and given the buying public a real choice,” Knight Frank director and head of project marketing in Queensland Chris Litfin said.

“With the steady increase in population on the Gold Coast and the ever-increasing downsizer demand from retirees, the result is a very stable property environment.”

An array of smaller projects have successfully navigated the changing market to provide high-quality boutique developments.

Recently, Brisbane-based developer Synergy Property Partners completed NORTH Residences in Burleigh, a nine-storey apartment building comprising large whole-floor living.

“It ticks all the boxes for affluent buyers looking for quality, new beachfront product on the southern Gold Coast,” Selling agent Jamie-Lee Edwards of Kollosche Prestige Agents said.

The market will also benefit from the proposed $30 billion development pipeline in the wake of the Commonwealth Games.

More than 250 projects rolling out over multiple sectors including residential, transportation, tourism, retail, health and services.

They include the $615 million third stage of the Gold Coast Light Rail, $500 million Westfield Coomera Town Centre, the $385 million Gold Coast Cultural Precinct, and the second stage of the Gold Coast Airport’s $300 million masterplan.

Source: theurbandeveloper.com

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Market Place

Gold Coast property: Gold Coast’s fastest selling suburbs revealed

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Gold Coast property: Gold Coast’s fastest selling suburbs revealed

An undated aerial view of Merrimac, Gold Coast

HOUSE hunters are snapping up Gold Coast properties in some inland suburbs within weeks of them hitting the market.
New figures released by property researcher CoreLogic show Currumbin Valley, Merrimac and Mudgeeraba top the list of fastest-selling suburbs on the Gold Coast.

Property experts attributed the demand to the unique homes on offer and better value for money in the areas.


Gold Coast property: Gold Coast’s fastest selling suburbs revealed
Who wouldn’t wanna live here though?

Currumbin Valley and Merrimac shared first place, with houses on median sold 19 days of being on the market.

The figure is based on a total of 86 sales within those areas throughout the past year.

While McGrath Palm Beach agent Andy Hogarth was surprised 20 homes had sold in Currumbin Valley over the past year, he said the figure still accurately reflected the market.

He sold a luxury American-style barn in May after a week on the market while colleague Richard Snowden sold the country retreat of AFL legend Jonathan Brown following a four-week auction campaign.

Gold Coast property: Gold Coast’s fastest selling suburbs revealed
An undated aerial view of Merrimac, Gold Coast

“I think it’s just the uniqueness of the properties that we have had out there that’s attracting people,” he said.

The 212 house sales in Mudgeeraba sold within a median of 22 days.

RE/MAX Regency Gold Coast agent Stuart Legg said properties in Mudgeeraba offered better value for money than many of those along the coast.

“During the (Gold Coast’s) growth period over the past four years, I think people have realised their budget will only go so far,” he said.

Gold Coast property: Gold Coast’s fastest selling suburbs revealed
Mudgeeraba — where you get the best value for money.

Mr Legg said there was also a limited number of homes on the market, which meant people were quick to buy as soon as they were listed.

He recently sold a Mudgeeraba property, which attracted 20 groups for inspections and five offers, in four days.

“The number of sales are definitely down this year on last year, but that just increases the demand for properties as well,” he said.

Despite the data, CoreLogic research analyst Cameron Kusher said properties on the Coast were actually taking longer to sell compared to previous years, “which is reflective of the overall slowing of dwelling value growth over the past year”.

Gold Coast property: Gold Coast’s fastest selling suburbs revealed
Aerial photo shoot this morning of Beach Erosion along the Gold Coast from Main Beach to Miami Beach — Surfers Paradise

Gold Coast’s fastest selling suburbs:

1. Currumbin Valley and Merrimac (houses) — 19 days

2. Mudgeeraba (houses) — 22 days

3. Burleigh Waters (units) — 23 days

4. Currumbin Waters, Mudgeeraba, Tugun (units) — 24 days

5. Miami (units) and Worongary (houses) — 25 days

Source: www.themercury.com.au

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