House prices expected to grow after the Commonwealth Games
PROPERTY experts are tipping the Gold Coast’s booming property market to remain strong following the Commonwealth Games.
Jessica Brown : Gold Coast Bulletin
Aerial view of Gold Coast, Queensland, AustraliaSource:istock
GOLD Coast house prices are expected to remain strong following the Commonwealth Games.
Demand for affordable housing options and a desire to live in established coastal areas were attributed to the growth, new RiskWise Property research has found.
RiskWise chief executive Doron Peleg said the Gold Coast was one of the most popular destinations for both owner-occupiers and investors in southeast Queensland.
“It has beautiful beachside and waterside suburbs, an unrivalled lifestyle, good infrastructure, a large number of well-off residents and locals who describe the Gold Coast as ‘heaven for children’,” Mr Peleg said.
“(It) has a stable property market that offers both affordability and excellent access to superb beach and coastal areas, and that is very appealing to buyers.”
The research showed the region had experienced solid property growth over the past five years — houses were up 36 per cent while units recorded a 23 per cent increase.
According to CoreLogic’s latest regional market data, the median house price was $634,423 to December and $411,229 for a unit.
Mr Peleg said while there would be less economic activity in the region after the games, the Gold Coast would continue to benefit.
He said the Games had marketed the region to the world while infrastructure had been improved for the event and money invested into major developments, including the $1.2 billion Spirit Tower, which was on track to become the southern hemisphere’s tallest building. However, Mr Peleg said high demand meant there were limited houses on the market.
“The high level of owner-occupier ratio of 75 per cent and the average holding period of 11 years indicate that, besides a small number of potential sellers that are currently holding their selling decisions, it is unlikely that the local owners will significantly increase the supply of properties,” he said.
“Also, property investors who enjoy strong capital growth and receive high rental returns from local families, are also unlikely to significantly increase the supply.
“In any case, any additional supply of houses is projected to be easily absorbed by the market, due to the strong demand.”
He said units carried a higher level of risk than houses in terms of equity and cash flow.
Australian property expert Mike Harvey agreed, explaining houses were a safer investment.
He said the Gold Coast had a transient population, which affected the region’s economy.
Originally published as House prices on the up after Games
Source: Gold Coast Bulletin, March 13 2018