The Gold Coast is Australia’s sixth largest urban area, with a population of just over half a million and growing, with close to 11,000 new residents moving in each year.
To put it another way, for every five people on the Gold Coast today, there will be eight people within 25 years. The areas job market is also growing – a vital component for a healthy real estate market. (Gold Coast starting to shine, Courier Mail, Michael Matusik, 29/03/14.)
There is a real buzz of prosperity around the Gold Coast that is being amplified by the upcoming 2018 Commonwealth Games. With no real land supply on the southern and central parts of the coast all development and growth is being experienced to the Northern Suburbs of Coomera – Pimpama.
The distinct undersupply of rental properties in the Coomera-Pimpama growth corridor has resulted in a vacancy rate of under 1% and an increase in rental prices.
Investors should look to buy property priced largely under $400,000 for secondhand stock; under $500,000 for new apartments and house and land. Property at these price points should be met with strong rental demand and should attract ownder-resident buyer interest at presale.
Another big plus to the Gold Coast property cycle this time around is the undersupply of new stock and also the very tight local rental market.
With already over 500,000 permanent residents; strong population growth, a young demographic profile and tight supply (at present), the Gold Coast property market is in its best shape for almost a decade.
Coast market starting to shine
AT the beginning of the year our forecast was for a busier Queensland residential market throughout 2014. And for the Gold Coast, that has certainly become the case. Activity in that market is ramping up, with the Gold Coast in the early stages of a market recovery. In a nutshell, that means increasing building activity, rising sales, prices and rents. And the good news doesn’t just stop there.
The fact is, the Gold Coast market is seen by many as a bellwether for the overall health of the Queensland residential property market. But while renewed energy in Queensland’s southern city is helping to restore general market confidence in the state overall, it remains important to maintain a realistic perspective. Here are some current facts and figures on the Gold Coast region.
The Gold Coast is Australia’s sixth largest urban area, with a population of just over half a million and growing, with close to 11,000 new residents moving in each year. To put it another way, for every five people on the Gold Coast today, there will be eight people within 25 years. The area’s job market is also growing— a vital component for a healthy real estate market.
Last year, dose to 6000 new jobs were created in the region and currently, 330,000 people are employed locally.
Demand for housing is increasing, with a need to build 5000 new dwellings each year. And with just 2500 new dwellings approved last year, the past oversupply of homes in the area has now been absorbed.
Residential sales for this financial year should be in the vicinity of 18,000 and our estimate is for aboout 22,000 sales during fiscal 2015. All good news.
The recovery for the Gold Coast, however, will be milder than in the past. There simply are no quick fixes in sight. While employment growth on the Coast is on the rise, the level of growth remains somewhat weak In turn, housing affordability remains relatively low. However, for those who may be interested in purchasing a residential investment property on the Gold Coast, this is probably the year to do it —especially as there are still bargains available to be had. Investors do need to exercise caution, particularly in terms of cost and product type.
Our estimates are that the Gold Coast should remain in the recovery phase of the cycle for the remainder of this calendar year; entering an upswing in the middle of 2015 and peaking in mid-2017.
All things remaining equal, attached dwellings, on average, look set to rise by up to 8 per cent on the Gold Coast over the next 12-15 months with less price growth expected for other housing types and vacant land.
Prospective renters flock to inspections across the Coast as hunt for homes heats up
DESPERATE prospective tenants are flooding agencies with applications and flocking to inspections as demand for rentals across the Gold Coast is at a four-year high.
Real estate agents, who say that in some instances more than 50 hopefuls have shown up at property inspections, put the demand down to construction jobs and the looming start of the university year attracting people back to the glitter strip.
The race to sign on the dotted line has also pushed renters to go above and beyond the usual application process, providing written references for pets and endorsements from their parents.
Real Estate Institute of Queensland Gold Coast zone chairman John Newlands said it was the highest demand he had seen in about four years.
“There is good demand and in some cases there are multiple applications on certain properties,” he said.
“I think there are more people generally starting to move back to the Coast (after) an exodus over the past three or four years.”
Mr Newlands cited preparation for the Commonwealth Games and the Pacific Fair redevelopment as two projects bringing people back to the city.
THE Real Estate-Miami property manager Mathew Davey said he had seen more than 50 people turn up to one inspection, which in most cases lasted just 15 minutes.
“I get letters from parents, I get a lot of people who are pet owners writing things about their pets and how well behaved they are,” he said.
“I get people looking for weeks. Most of the horror stories are people with pets.”
Mr Davey said rental prices were steady, but did not rule out an increase if strong demand continued.
Ray White leasing consultant Rebecca Palmer said family homes close to schools were in demand and university students were starting to seek rentals too.
“Because they are so desperate, they are just applying for anything and inspecting it after just to get ahead.,” she said.
“Last Saturday we had 50 at one property in Coomera.”
Hospitality worker Emma Maund, 24, and father-of-two Michael Rudkowski inspected a Miami four-bedroom home yesterday going for $550 a week and both said the market was tough.
“It is insane the amount of people turning up (to inspections),” said Mr Rudkowski, who has been on the hunt for a home for almost two weeks.
“It’s a cattle call. There were 30 people at a home at Robina property one morning.”
Ms Maund has been looking for a home to share with three friends for two months and said they had lost the race for two properties and attended countless inspections.
“At this time of year it’s not easy to find property,” she said.
“There’s always at least three groups at each (inspection).”
Tips to get that home:
• Fill out the entire application form and have your references in order.
• Get applications in early, but keep in mind first in is not always best dressed.
• Don’t waste agents’ time applying for properties you don’t want.
• Provide references for your pets.
• Don’t bother trying to start a bidding war. It’s against the law in Queensland.
• Be well presented at the inspection.