The Gold Coast is Australias 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 Gold Coast market RECOVERY started in earnest this year. It followed a market correction. This reset and rest was needed, as the Gold Coast had overheated in terms of price and even rents in the mid to late 2000's. Property values had appreciated in order of 165% between 2001 and 2008. So what will occur this time. Michael Matusik says " values are expected to lift, but mildly in comparison. Potentially, house values could rise by another 9% and attached property values by as much as 11%. The Gold Coast market could be peaking in early 2016 to 2017, depending on interest rates movements, local employment trends and supply and demand. During the next decade this underlying demand is expected to lift to 5,225 new houses required per annum. Our modelling indicates that each year between now and 2021 there will be the need for:
The Gold Coast also has a younger demographic, with the strongest demand over the next 10 years coming from the young renters and first home buyers. This will see a rising demand for more affordable property. This will likely fuel the need for more houses and more townhouses mostly away from the beach. The downsizing market is also quite large and this market too, is looking toward smaller dwellings and more affordable property in local suburban estates."
Investors should look at property priced largely under $450,000 to $550,000 for new apartments and house and land. Property at this price point should be met with strong rental demand and should attract buyer interest as well.
The Gold Coast property cycle this time around has an undersupply of new stock and a very tight rental market.
There are areas of the Gold Coast that really stand out! Buy near the employment nodes - Carrara, Nerang, Mudgeraba, Arundel, Ashmore, Robina, Varsity Lakes, Coomera, Pimpama buy in an inland suburb. There is a real buzz of prosperity around the Gold Coast that is being amplified by the upcoming Commonwealth Games. With no real land supply on the southern and central parts of the coast all development and growth is being experienced in the Northern suburbs of Coomera Pimpama. The distinct undersupply of rental properties in the Coomera-Pimpama corridor has resulted in a vacancy factor of under 1% and an increase in rental prices.
Investors should buy affordable, mainstream rental property, not lifestyle orientated stock.
KEY DRIVERS AND INFRASTRUCTURE are creating an even more sound case for investing :
Take note too of the quality new residential development that is occurring in these more inland locations - don't overlook the opportunity to purchase a house and land/townhouse/villa located in one of these major new estates located near all major facilities and services. Suburbs like Coomera and Pimpama located in the Northern Gold Coast Corridor which are at present skyrocketing!!!
Estates include: Foxtell Rise, Coomera Grand, Norman Springs, The Meadows, Karingal Drive, all located very near the new upcoming 60 HA Coomera Town Centre.