House Prices Soar 30 Per Cent in Gold Coast Property Boom

WITH 17 months to go until the 2018 Commonwealth Games, the Gold Coast property market is showing no signs of slowing with house prices in some suburbs jumping more than 30 per cent in the past year.

According to CoreLogic’s latest statistics, the Gold Coast recorded a 5.5 per cent increase in median house prices over the past 12 months and a 16.1 per cent increase over five years. Unit prices jumped 5.1 per cent over the 12 months but also 5.1 per cent over five years.

If you own a house in Mermaid Beach, Broadbeach Waters, Springbrook or Tweed Heads you could be sitting on gold, with property prices surging in those suburbs.

Mermaid Beach was the biggest mover, soaring 33.5 per cent over 12 months with a median house price now $1.395 million.

It was followed by Broadbeach Waters on 24.8 per cent and Springbrook on 20.4 per cent.

Tweed Heads, Hope Island and Tallebudgera also fared well and all recorded solid increases in median prices.

 

REIQ Gold Coast zone chairman John Newlands said tourism and new infrastructure were attracting buyers.

“We’re going to have a low-interest rate environment and there will be opportunities leading into the Commonwealth Games,” Mr Newlands said.

“We will see similar migration to this year next year, coming through from interstate buyers.

“Buyers are willing to go to the northern corridor, Pimpama and Coomera, as it is still affordable.

“Burleigh Heads and Miami will also stand out as they are still affordable and offer beachside living.

“I’ve also heard a few people say Coolangatta has picked up as there’s good infrastructure and it’s close to the airport.”

Kristie Turner is selling her waterfront property at 3 Windchimes Way, Helensvale, through Harcourts Coastal’s Sally O’Neill and predicted the Coast market to surge in 2017.

“I think a lot of people are securing properties now because they know after the Commonwealth Games there’s going to be substantial growth, especially for unique properties that are hard to come by,” Ms Turner said.

“A lot of people want their piece of paradise while they can afford it and I’d hate to think what properties would be worth in 20 years.

She said it was the Coast lifestyle that people were after.

“I would be holding on to my property but I’m moving back to Townsville for family reasons.

“Otherwise I wouldn’t even be looking to sell.”

Harcourts Coastal boss Dane Atherton said he believed the market was the strongest it has been since the Global Financial crisis.

“Two or three years ago we had little sales runs, we had first home buyers, then waterfront homes and then apartments,” Mr Atherton said.

“Now everything is more consistent.

“We’ve also had a run of Chinese and international buyers over the past 12 months which has seem to have cooled and been replaced with interstate buyers.

“They’re coming here to retire, for investment purposes, for lifestyle reasons.

“The Coast is just offering such great value.

2017 OUTLOOK
NORTHERN SUBURBS
THE northern suburbs are not expected to enjoy the growth of their southern neighbours next year, but prices are still forecast to rise slowly.

LJ Hooker Coomera principal Richard Graves said Upper Coomera and Coomera appealed to buyers because it was affordable and central to Brisbane and the Gold Coast beaches.

The new Coomera overpass was also alleviating traffic woes in the area, he said.

“In the next year we will continue to see growth as it’s an opportunity area,” Mr Graves said.

“I don’t think it will rocket in price but I believe it will be a steady growth.

“We have a lot of inquiry from interstate buyers and locally.”

CoreLogic results show while median house prices in Pimpama dropped 2.6 per cent in the past 12 months, over five years it leapt 61.1 per cent.

Coomera increased by 7.2 per cent (12 months) and 22.7 per cent (five years); Jacobs Well by 8.1 per cent (12 months) and Upper Coomera 5.9 per cent (12 months).

Central and northern Gold Coast will be hot spots going into 2017

CENTRAL SUBURBS:
MERMAID Beach and Miami are set to back up and be star performers into 2017.

The central beachside suburbs recorded massive jumps in median prices, with Mermaid Beach topping the list.

Harcourts Coastal boss Dane Atherton attributed the success to their location.

“I think they’re lifestyle locations and that’s where buyers want to be,” he said.

“Beachside suburbs cater for investors and lifestyle buyers, they cater for locals and they cater for interstate buyers.

“When you fly over the Gold Coast and you look down at Mermaid Beach, it is a very local residential suburb.

“You can find a house close to the beach and know it’s not going to have a tower beside it and I think that’s part of the appeal.”

Inland suburbs did not quite reach the peak of their beachside counterparts but still recorded solid increases.

Bundall leapt 13.2 per cent in median house price over 12 months, Gaven 9.9 per cent and Carrara 9.2 per cent.

Currumbin median house prices dipped in the past year but the suburb recorded 30 per cent growth across five years.

SOUTHERN SUBURBS:
PALM Beach and Tugun are tipped to boom on the southern Coast next year.

McGrath Palm Beach agent Andy Hogarth said he was seeing plenty of interstate buyers purchasing their first investment in Palm Beach with intentions to move up in years to come.

“With low interest rates, strong rental returns, tightly held market and a high level of active buyers looking to purchase, I believe we have a few years left in the current growth cycle,” he said.

“With a shortage of listings coming on and the high level of buyer activity, the competition for homes is too strong to see it going anywhere but up.”

It is a mixed bag with Currumbin and Bilinga dipping in price — the beachside suburbs recorded 16.8 per cent and 21 per cent decreases in houses prices over 12 months respectively.

But on the flip side, Currumbin house prices actually increased by 30 per cent over five years.

Units in Casuarina surged by 36.6 per cent over 12 months with a median price of $415,000 while Tweed Heads house prices also boomed by 18 per cent.

Source: Gold Coast Bulletin 12 November 2016

The post House Prices Soar 30 Per Cent in Gold Coast Property Boom appeared first on Real Estate in Australia.