The Gold Coast is gearing up for the Commonwealth Games in two years, but the positive impacts on its property market are happening already.
The Gold Coast suffered more than most during the Global Financial Crisis, courtesy of the collapse in the building sector as well as a sky-high Australian dollar. Recently, however, its property market has begun clawing its way back.
Domain Group chief economist Andrew Wilson says the market is improving due to a combination of factors, including different infrastructure projects, which is underpinning sales and prices growth.
“I think the Gold Coast is still set for another five per cent year this year and on the back of what is quite a strong resurgence performance by the local economy,” he says.
“A lot of that is because of significant levels of infrastructure that’s been going on down there – hospitals, universities and a lot of high-rise actually. High-rise is back in town, apartments are back in town on the Gold Coast, even though that market still probably hasn’t bottomed out in terms of price cycle.”
The Gold Coast was one of Queensland’s strongest performers in 2015 with data showing strengthening sales. According to the Real Estate Institute of Queensland, preliminary house sales increased six per cent over the September quarter and 14 per cent over the year.
Wilson says the announcement of the Commonwealth Games in 2011 helped its market out of the doldrums but it can’t take all the credit.
“Big events tend to have a leading effect on [the] housing market and sort of peter out closer to the event. I think we’re seeing that now with that development but that’s just part of the equation, not the full story,” he says.
“It’s just adding to what’s been a resurgent market. I think affordability and an improving economy are the keys there and so much infrastructure work has certainly created a lot of jobs, particularly for tradesmen.”
Wilson says the Gold Coast continues to offer significant potential with steady price growth, while its unit market, which has recovered from years of over-building, is now its shining light.
“I’ll say this to anyone who wants to listen, I think the Gold Coast apartment market is probably the best value housing market in the country,” he says.
“You still can get apartments on the ocean side of the highway – Broadbeach all the way down to Coolangatta – for $400,000 to $500,000, maybe even less if you’re prepared to haggle, with six per cent yields, full occupancy, in Australia’s leading lifestyle market.
“It just doesn’t get any better than that in terms of value, and if you’re paying 4.5 per cent interest, that’s just the icing on the cake.”
Originally Published On: http://www.domain.com.au/