PALM BEACH is officially on the real estate hot list, with the suburb set to take over from Mermaid Beach as the top Gold Coast market to watch.
Industry insider Tod Gillespie, the director of property valuer Heron Todd White, tipped that Miami and Varsity Lakes would also be standout performers this year.
“While the location of the Gold Coast Highway has been an issue to buyers in the past, the flood of new coffee shops and eateries has put Palmy on the map,” Mr Gillespie said.
He predicted Palm Beach would become the “new Mermaid Beach”, soaring ahead of Miami and Varsity Lakes.
“If you compare Miami to Palm Beach two years ago, prices were on par with each other — now the Palm Beach market is much stronger than Miami,” he said.
CoreLogic data reveals both suburbs have experienced strong price growth in the past five years.
The median house price for Palm Beach is up 38 per cent to $706,000 while Miami has soared 50 per cent to reach $719,000.
McGrath Palm Beach agent Laura Dean said Palm Beach offered a casual, beachside lifestyle that Gold Coasters loved
“Palm Beach still has that quintessential beachside vibe with a great mix of original beach cottages, new duplexes, new detached homes and some amazing waterfront properties going up,” she said.
“People have realised that this is one of the last suburbs on the coast where you can get this amazing mix of lifestyle and location.”
Mr Gillespie said suburbs on the fringe of recent strong performers were now likely to have a better chance of price growth.
“Volume will remain similar to what we have seen, which will assist an increase in values as buyer demand will remain strong,” he said.
“The lack of product being available should result in quick-selling periods.”
Rounding out the top three suburbs to watch, Mr Gillespie said Varsity Lakes may also see a heightened market as a result of US President Donald Trump’s border policy.
He predicted this could increase the overseas student intake at Bond University, creating more demand for rental properties.
The relatively new suburb, which was developed by Delfin Lend Lease in 2002, was one of the Coast’s fastest-selling suburbs in 2016 recording a median house sale price of $597,500.
The southern suburbs of Coolangatta, Tugun, Bilinga and Banora Point all rate in Mr Gillespie’s top 10 suburbs to watch.
Coolangatta has already recorded three multi-million dollar sales this month, including $2.825 million for a four-bedroom apartment in Elysee Residences.
“Coolangatta has four of the world’s best surf breaks, north facing beaches and is the new third council designated CBD,” Mr Gillespie said.
“Tugun and Bilinga are often forgotten but represent good value compared to Currumbin and Palm Beach. And Banora Point — on the back of the Coolangatta and Tweed markets having improved — is a very affordable family home location.”
Mr Gillespie said Pottsville made the list because of its affordability compared with Kingscliff and Casuarina.
He said that while overall house and unit prices looked set to increase, he didn’t expect growth to match that of the past two years.
“Investor product will slow as lending restrictions tighten and yields fall on the back of a potential oversupply in the investor-focused fringe locations.”
REIQ Gold Coast chairman John Newlands shared a similar market outlook.
“I don’t see us having a boom situation, but we will still benefit from the infrastructure surrounding the 2018 Commonwealth Games,” Mr Newlands said.
“Tourism has picked up, which creates jobs in the hospitality industry and going forward, the big projects create plenty of jobs — the third arm of the light rail and the major building projects.”
Mr Newlands expected investors to tighten their belts when it came to off-the-plan purchases.
“The banks will want to make sure you can afford it,” he said.
“Obviously it won’t matter if you’re a good candidate and you have no problem with a deposit. “But the last thing we need is a boom-bust situation so I think that’s a good precaution.”
Top 10 suburbs to watch
Source: Heron Todd White director Tod Gillespie
Palm Beach
Varsity Lakes
Miami
Coolangatta
Merrimac
Carrara
Tugun/Bilinga
Pottsville
Mermaid Beach
Source: The Gold Coast Bulletin 20 February 2017
The post Palm Beach, Miami And Varsity Lakes Tipped To Be The Standout Performers In 2017 appeared first on Real Estate in Australia.
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