Andrew Galloway is selling his investment property in Loganlea, which has been identified as one of Queensland’s most affordable growth suburbs. Image: AAP/John Gass.Source:News Limited
THESE are the best performing cheapie suburbs in Queensland. Find out which areas buyers on a budget should be targeting.
QUEENSLAND’S best growth suburbs for buyers on a budget are in lifestyle locations and affordable hot spots in Brisbane’s backyard, a new report has revealed.
For an investment property under $500,000 and with good capital growth prospects, look no further than Palm Beach on the Gold Coast, Noosaville on the Sunshine Coast and Loganlea, south of Brisbane, where values have increased by up to 20 per cent in 12 months.
The Top Affordable Suburbs Report, released by researcher CoreLogic, identifies suburbs where property values are below half a million dollars and have shown strong capital growth.
These suburbs are good targets for entry-level buyers, offering affordable real estate, improving infrastructure and strong track records that suggest ongoing strength.
Palm Beach holds the number one spot as the most affordable for capital growth in the state, according to the report.
Unit values in the beachside enclave have jumped 20.2 per cent in the past 12 months and more than 52 per cent in five years to a $471,758 median.
But you can still snap up a two-bedroom apartment a few streets back from the beach there for $379,000.
After Palm Beach, the second most affordable growth suburb in the state is Noosaville on the Sunshine Coast, where unit values have gained more than 14 per cent in the past year to reach $486,468.
Alexandra Headland is also in the top 10 list compiled by CoreLogic, with units in the beachside suburb increasing in value by more than 12 per cent in a year.
But you can still get a two-bedroom unit with ocean views in the suburb for $429,000.
GOLD MINE FOUND IN BRISBANE BACKYARD
CoreLogic senior research analyst Cameron Kusher said first home buyers were still active in Queensland and the more affordable end of the market was not facing the same pressures as the more expensive suburbs, which explained why suburbs like Loganlea, Ripley and Jimboomba were performing well.
“We are finding the lower end of the housing market is the higher value stock — even in Brisbane,” he said.
“We might not see the same gains over the next 12 months or three years, but there’s still going to be demand in these affordable markets.”
The latest CoreLogic home value figures reveal a strengthening of affordable and lifestyle locations, particularly on the Sunshine Coast, which recorded a 5.5 per cent increase in home values in the past financial year.
HOME FIT FOR HARRY AND MEGHAN
Mr Kusher said the Gold Coast housing market was starting to cool off, but demand was still strong for the Sunshine Coast.
“These people from Sydney and Melbourne who want to buy a holiday property are looking at these areas and seeing pretty good value,” Mr Kusher said.
“I think that’s where the buyers are coming from.”
In Loganlea, about 25km south of Brisbane, house values have increased more than 14 per cent in the past year to a still very affordable $391,469.
Andrew Galloway is selling his investment property, which is on the market for just $339,000.
The four-bedroom, two-bathroom brick house at 10 Starling St, Loganlea, has been returning about $345 a week in rent.
Mr Galloway said the property had recorded solid capital growth in the past 11 years he had owned it and he had decided to take advantage of that.
“I think it’s achieved the capital gain it’s going to achieve in the time frame I’m going to have it,” he said.
Mr Galloway said he had noticed gentrification in and around the street in the past decade, which had made it more appealing.
Selling agent Pamela Anemaat of Raine & Horne Beenleigh said there had been an increase in large blocks in the suburb being subdivided by developers offering house and land packages, which had helped generate interest, particularly from first home buyers.
Mrs Anemaat said Loganlea was also popular suburb for investors because it was a high rental area and still so affordable.
“It is a feast for southern buyers, and they are moving up here and purchasing up here because they just can’t afford to buy a new home down there,” she said.
QLD’S 10 BEST PERFORMING AFFORDABLE SUBURBS
Suburb Property type Median value Value change Value change
12 mths 5 yrs
1. Palm Beach Units $471,758 20.2% 52.2%
2. Noosaville Units $486,468 14.4% 36.9%
3. Loganlea Houses $391,469 14.3% 43.8%
4. Mudgeeraba Units $399,637 13% 37.8%
5. Alexandra Headland Units $397,297 12% 36.6%
6. Ningi Houses $458,469 9.2% 11%
7. Jimboomba Houses $494,933 9.1% 22.1%
8. Ripley Houses $391,736 8.7% 23.9%
9. Elanora Units $372,760 8.6% 29.7%
10. Narangba Houses $493,418 8.3% 26.9%
(Source: CoreLogic, based on data to March 2018)
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.
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.”
Maturing Gold Coast Apartment Market No Longer ‘Boom and Bust’
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.
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.
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.
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.
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.
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”.
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
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