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Steer clear of these Coast suburbs: report

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Steer clear of these Coast suburbs: report

Hope Island is on a list of ‘suburbs to avoid’ according to an investment report.Source:Supplied

Despite the Gold Coast’s glittering property market, there are five Coast suburbs to steer clear of, according to separate reports. Is yours on the list?

IT GOES against the apparent steady boom of the Gold Coast property market, but separate reports have named five Coast suburbs that buyers should steer clear of.

Four local areas have made the top 100 most-risky suburbs across Australia — Broadbeach, Surfers Paradise, Hope Island and Southport.

Broadbeach is in the top 100 ‘risky’ suburbs in Australia for buyers.

Broadbeach is in the top 100 ‘risky’ suburbs in Australia for buyers.Source:News Limited

So is Surfers Paradise. Photo: David Clark

So is Surfers Paradise. Photo: David ClarkSource:News Corp Australia

So what has landed some of the region’s most popular suburbs in the danger zone? According to research house RiskWise Property Review, there is a large number of units in the pipeline which are likely to lead to significant oversupply.

“Our research shows that 10,614 new units will be added to the Gold Coast property market over the next 24 months. This represents a small increase and is unlikely to have any significant impact on the market,” said RiskWise CEO Doron Peleg.

“However, Surfers Paradise and Broadbeach have a larger number of units in the

pipeline, and these areas carry a high level of risk.”

“Since many units in these areas are sold off-the-plan, potential buyers face three types of major risks being equity risk, cashflow risk and settlement risk.”

It’s because of an oversupply of these, according to a research house. Photo: David Clark

It’s because of an oversupply of these, according to a research house. Photo: David ClarkSource:News Corp Australia

Broadbeach, with a median unit value of $510,000 has 1125 properties in the pipeline, with the percentage of existing stock sitting at 18.4 per cent, and a vacancy rate of 3.4 per cent.

Surfers Paradise, which has a median unit value of $394,000 has 2294 properties on the way.

However, Mr Peleg said the level of supply in other areas was expected to be absorbed by significant population growth forecast.

But large numbers of new residents are forecast. Picture: Jerad Williams

But large numbers of new residents are forecast. Picture: Jerad WilliamsSource:News Corp Australia

Ray White Surfers Paradise CEO Andrew Bell said current estimates on migration numbers to the Gold Coast indicate 5000 new dwellings would have to be build each year.

“On this basis, the forecast is we need about 40 per cent of all constructions to be for apartments, 23 per cent for small lot homes, 20 per cent for townhouses, 15 per cent for traditional detached housing and two per cent for retirement aged care,” Mr Bell said.

“The current construction wave that we are seeing is not only making up for the past years where we had under construction but also meeting current demand.”

Meanwhile, a separate report has named on northern corridor suburb as a ‘negative growth trap’.

Groundwork underway at the $1 billion Coomera Town Centre. (AAP Image/Dave Hunt)

Groundwork underway at the $1 billion Coomera Town Centre. (AAP Image/Dave Hunt)Source:AAP

Coomera witnessed a decline of 5.5 per cent in its housing market over the 12 months to November 2017, according to a property investment specialist.

Suburbanite founder and director Anna Porter produced the report using CoreLogic data, to determine 24 suburbs across Australia that investors should steer clear of.

It follows commentary from industry experts that buyers will flock to the northern corridor as a result of infrastructure investment like the Coomera Town Centre, that’s due for completion later this year.

Originally published: www.news.com.au

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Opinion

Gold Coast real estate market set to pick up after Comm Games

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Gold Coast real estate market set to pick up after Comm Games

The Gold Coast real estate market is set to pick up after the Commonwealth Games.Source:Getty Images

The Gold Coast real estate market may have gone quiet throughout the Commonwealth Games but it won’t stay that way for long.

IT WAS a quiet auction weekend on the Gold Coast but the market is expected to pick up now the Commonwealth Games are over.

CoreLogic auction market commentator Geoff White said the property market had gone quiet throughout the Games.

He said business was affected across the board, with many retailers including cafe and restaurant owners reporting a downturn over the past two weeks.

Gold Coast real estate market set to pick up after Comm Games

Housing around the Coomera River.Source:AAP

Gold Coast real estate market set to pick up after Comm Games
Auctioneer Haesley Cush. Picture by Scott FletcherSource:News Corp Australia

However, he was confident the market would return to “business as usual” now the event had wrapped up.

“(The market) has been affected by the Commonwealth Games, there’s not doubt about that,” Mr White said.

“But that’s not a sign of things to come, I wouldn’t have thought.”

According to CoreLogic, there were 19 auctions over the weekend with seven recorded results, whether they be sold of passed-in.

This coming weekend, there are 37 properties set to go under the hammer on Saturday and another 54 on Sunday.

Most of the properties scheduled to go to auction on Sunday are part of Ray White Queensland’s Gold Coast Auction Spectacular at Main Beach’s Sheraton Grand Mirage.

Gold Coast real estate market set to pick up after Comm Games
Auctioneer Andrew Bell.Source:News Limited

 Gold Coast real estate market set to pick up after Comm GamesThe Commonwealth Games brought many auctions across the Gold Coast to a holt.Source:Getty Images

Source: www.news.com.au

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Opinion

Coast property market to flourish for years to come

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Coast property market to flourish for years to come

THE Coast’s popularity as a lifestyle destination is strengthening its housing market, according to real estate executive Rem Rafter.

The CBRE Sunshine Coast managing director said the housing market was in “good shape”, driven by increasing population including interstate migration.

“The traditional unit market is very good with strong demand,” Mr Rafter said.

“New developments have had good pre-sales, including Stockland’s Oceanside Kawana and several apartment projects by the Walter Iezzi Property Group.

“Brisbane-based Mosaic Property Group has also been active on the Coast, with off-the-plan apartment projects under way at Coolum and Kings Beach, Caloundra.

“We have seen from recent site sales that developers are concentrating their efforts in these areas and investment yields have become quite tight as a result.”

He said the Coast’s apartment and housing market could flourish for another two to three years.

“A recent presentation by Tim Lawless of CoreLogic shows positive indicators including improved interstate migration and steady capital gains across the coast of 5.5%.

“The Sunshine Coast’s median house price of $579,526 is attractive to southern buyers, with Sydney’s house price now over $1 million and Melbourne not far behind.”

Source: www.sunshinecoastdaily.com.au

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Opinion

Sydney Baby Boomers drive real estate boom in Brisbane

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Sydney Baby Boomers drive real estate boom in Brisbane

Brisbane’s bayside suburb of Wynnum is an attractive option for southern buyers.Source:Supplied

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

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