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Gold Coast Housing Market Insights: October 2021

Gold Coast Housing Market Insights

The Urban Developer’s latest Gold Coast housing market insights reveals the city’s property prices have increased by nearly $400 a day in the past year—jumping by more than 30 per cent in some suburbs.

This resource, updated periodically, will collate and examine the economic levers pushing and pulling the Gold Coast’s housing market.

Combining market research, rolling indices and expert market opinion, this evolving hub will act as a pulse check for those wanting to take a closer look at the movements across the market.

Gold Coast median property prices % change

TypeMonthQuarterAnnualMedian
All2.0%▼6.4%▼26.7%▲$727,219▲
Houses1.6%▼6.2%▼28.6%▲$886,747▲
Units2.6%▲6.7%▲23.2%▲$544,681▲

^Source: Corelogic – September 2021

While other housing market’s across the country saw declines in 2020 due to the pandemic, the Gold Coast, after a decade of moderate growth, has benefitted from the rise of working from home culture and lifestyle offerings.

According to Corelogic, the average Gold Coast house prices increased by 22 per cent between July 2020 and 2021.

The Gold Coast’s increase is now outpacing more established cities such as Adelaide, Darwin and Perth.

In the 12 months leading to March this year, the average price of new apartments increased by 23 per cent.

The rate of price growth has continued to gain momentum on the Gold Coast after reaching a peak in March this year, when values rose 3 per cent in a single month—a 15.4 per cent increase compared to March 2020.

The 2 per cent growth in dwelling prices in September was down slightly from the 2.3 per cent lift in August. Prices are now up 26.7 per cent across the year.

The current median value for dwellings is $727,000 advancing an additional $17,000 over the month of September.

A typical Gold Coast house is now worth $887,000, with a 1.6 per cent increase in September pocketing homeowners $25,000 across the month.

Over the June quarter, the median house price rose to a new record high, 18.2 per cent higher than the year before.

The median for a Gold Coast’s apartment is now $545,000 with many new buyers planning to split their time and lease their unit to holidaymakers while they are in the city, and spend part of their time working from home at the beach.

Buyers have also been lured by the Gold Coast apartment market’s switch from skyscrapers such as Q1 and Soul, both of which are more than 75 levels, to smaller projects featuring bigger apartments with more ameneties.

Gold Coast’s housing market: policy updates

Doubt on RBA rate hike plans

The central bank reiterated its view it will not increase the cash rate until actual inflation is sustainably within the 2 per cent-to-3 per cent target range and such condition would not happen before 2024.

RBA governor Philip Lowe said it was “difficult” to rationalise the market’s expectation that rates might rise in 2022 or 2023.

Frydenberg signals home loan crackdown

Treasurer Josh Frydenberg has given backing to regulators to crack down on high-debt home loans to reduce financial risks from record-low interest rates and surging property prices.

Analysts expect the council to announce new home lending restrictions before the end of this year.

Brisbane Olympics to push property market’s limits

Brisbane house prices will hit the $1-million median well before the 2032 Olympics with suburbs near venues tipped to move up to $3.9 million.

Meanwhile, prices on the Gold Coast and Sunshine Coast hit $792,000, up 18.2 per cent on last year, and $825,000 up 23.1 per cent, respectively.

What the experts are saying about the Gold Coast’s housing market

Dr Nicola Powell

Nicola Powell
Chief of Research
Domain

“Queensland has been ready for growth for so long, and while it has always been the spot for people to move interstate from Sydney or Melbourne, the pandemic has created a new environment for people to re-imagine what their life is.

“So, we’ve seen an increased volume of people moving from interstate in their prime working years, and while south-east Queensland has always been front of mind for retirees, that’s not the case anymore.

“It offers affordability and so, for some, they’ve been able to put a lifestyle dream into reality.”

Steven King Colliers Gold Coast


Steven King
Gold Coast Director
Colliers International

“It could be scary to see how many people do want to come to the Gold Coast.

“Covid has probably brought forward those plans many years, where they’re [buying] now as opposed to when they retire.

“That demand meant prices have got to go up, but the Gold Coast is still more affordable than some other places.”

Mark Witheriff Managing Director, Gold Coast Queensland


Mark Witheriff
Gold Coast Managing Director
CBRE

“Prime beachfront property up and down the Gold Coast, from the border to Main Beach, is very strong.

“There’s a real lifestyle change. They are looking for three bedrooms, some real comfort in them, whereas previously they were two-bedroom apartments and they were trying to get more in there rather than less.

“Now people are downsizing or coming up and wanting to live in these prestige apartment buildings rather than just a holiday. That’s the shift – bigger and better apartments.”

Stuart Legg Sales Associate RE/MAX Regency, Robina

Stuart Legg
Sales Associate
RE/MAX Regency

“For years I’ve probably run at about 5 per cent per annum for interstate buyers but now it’s 16 per cent.

“I think it comes back down to the fact that interstate buyers want something that will improve their lifestyle … and money goes a long way up here.

“I have also seen more younger buyers coming up and a few young professional couples—who would generally be chained to a CBD environment but [who] can now work from home—are buying acreage.”

Gold Coast housing market forecasts

ANZ similarly predicts at the national level Australian house prices will rise by a strong 17 per cent through 2021, before slowing to 6 per cent growth in 2022.

CommBank forecasts dwelling prices will rise 8 per cent in 2021 and 6 per cent in 2022, with house prices to rise 16 per cent in that time and unit prices by 9 per cent.

NAB has also upgraded its forecasts for dwelling prices—now expected to grow around 19 per cent in 2021 and per cent in 2022.

Westpac has upgraded its housing market forecasts, tipping house prices to lift by a further 5 per cent in the remaining three months of 2021 to be up 22 per cent for the year.

Gold Coast auction clearance rates

WeekClearance rateTotal Auctions
Week ending 6 September 202166.6%69
Week ending 13 September 202170.9%89
Week ending 20 September 202174.5%55
Week ending 27 September 202169.8%83

^Source: Corelogic – September 2021

While Brisbane, Gold Coast and Sunshine Coast property markets are all unique, there are a few things they have in common and that is to do with what Queenslanders are looking for in a home: size, property type, property features and location.

According to Corelogic, year-on-year home sales have risen by 54 per cent in Queensland to be at the highest number of annual sales since 2004.

The greatest increase in prices over the year has been in suburbs along the future southern route of the Gold Coast light rail, according to the data, with the next stages to run from Broadbeach to Burleigh Heads and to the border via Gold Coast Airport.

Broadbeach-Burleigh recorded a 32.4 per cent rise in property values between August 2020 and August 2021 while Coolangatta jumped 32 per cent.

Nationally, turnover has been the highest in Queensland, with 6.8 per cent of the state’s properties transacting over the year to August.

Auction clearance rates are expected to continue at record high levels bolstered by demand from interstate buyers emerging from lockdowns alongside local buyers taking advantage of historically low interest rates.

Supply also remains tight with more people looking to buy on the Gold Coast than vendors looking to sell—leading to increased property prices.

Views for Surfers Paradise auctions are up 40 per cent while listings in Robina, Broadbeach, Southport and Sorrento are all up more than 30 per cent.

Gold Coast residential rental vacancy rate

CityVacancy rateMonthly changeVacanciesNet change
Gold Coast1.2%0.1%▲494▲▲39

^Source: SQM Research – September 2021

Queensland’s rental crisis has worsened to a point where it is now more expensive to rent a house on the Gold Coast than in Sydney, and the chronic shortage of available properties could last for at least three years, experts say.

The median asking rent for houses on the Gold Coast has jumped to $766 a week as of September, compared with $702 in Sydney, according to recent SQM Research data.

Gold Coast house rents shot up by five per cent over the past three months with the city also collecting its greatest annual rate of growth—22.9 per cent—since records began in 2004.

Unit rents also rose 13.6 per cent over the year and 4.2 per cent over the quarter, the strongest rate of annual growth since 2007.

The pandemic-driven rush from Sydney and Melbourne into the state has sent Queensland’s rental market into uncharted territory, pushing vacancy rates down to their lowest levels since 2012.

House rents in Mudgeeraba rose 8.1 per cent over the past year to $600 per week with Clear Island Waters, on the Gold Coast, stealing the top-performing crown by suburb after the median house rent skyrocketed 30 per cent in a year to $949 per week.

Median house rents in the Ormeau-Oxenford region to jump 7.1 per cent over the past quarter to $525 per week, with units in the nearby Nerang region soaring by 7.9 per cent to $480 in three months.

Queensland building approvals 

DwellingApprovedMonthly % change
Houses2234▼-5.2%▼
Units3516▲4.0%▲

^Source: Australian Bureau of Statistics – August 2021

New dwelling approvals have risen an unexpected 6.8 per cent in August, led by an uptick in apartments moving through the system at the fastest rate since March.

The national seasonally adjusted total of 18,716 dwelling approvals ended five consecutive months of decline and was bolstered by a 13.7 per cent resurgence in apartment approvals, data from the ABS indicated.

Strong demand for apartments was particularly evident in Queensland and Western Australia where population growth is driving demand for medium-density housing.

The number of units approved in Queensland and Western Australia were 33.2 per cent and 84.2 per cent higher in the 12 months to August 2021 than in the previous year.

Residential dwelling approvals have now increased by 33.7 per cent in the three months to August compared to the same time last year, with detached approvals up by 31.5 per cent and multi-unit approvals up by 38.1 per cent.

Residential alteration and additions approvals ticked up 10 per cent from July to the second highest level recorded, behind April of this year.

Queensland home loan lending indicators 

TypeAug 2021 ($bn)Monthly % change
New loan commitments for owner occupier housing$3.940.5%▲
New loan commitments for investor housing$1.8513.4%▲
New loan commitments to first home buyers$2.531.6%▲

^Source: Australian Bureau of Statistics – August 2021

The relatively restriction-free states of Queensland recorded the strongest growth in investor demand this year, up 13.4 per cent over the month of August.

Investor loan commitments reached about $1.85 billion across the four weeks according to the latest Australian Bureau of Statistics lending indicators as buyers look to snap up a potential oceanfront property.

At $9.4 billion, investor loan commitments nationally across the month were at their highest level in dollar terms since April 2015, about the last time the prudential regular was forced to step in and cool the housing market.

The average owner-occupier home loan is up $76,000, or about 15 per cent, for the year, while the average dipped for most states in August.

The value of investor lending in August was almost double that of 2020. But in contrast to 2015, when investors made up about 50 per cent of the value of loan commitment, the present portion is just below 30 per cent.

But despite growing demand from investors, owner-occupier commitments remained elevated above long-run levels and totalled $21 billion over the reporting period.

Queensland interstate migration

StateArrivalsDeparturesNet change
Queensland28,500▼21,465▲7035▼

^Source: Australian Bureau of Statistics – March 2021

With a population of roughly 3.7 million, Queensland’s south-east is Australia’s fastest-growing zone.

The Gold Coast and south-east Queensland were direct beneficiaries of Victoria’s extended lockdown last year, with a dramatic population shift north.

Australian Bureau of Statistics data for June revealed Victoria’s population fell by 12,700 while the number of interstate migration to Queensland increased by 30,000, or 2 per cent.

Before the pandemic, Gold Coast city planners were working to a framework that the population would reach a million by 2041, delivering 6000 dwellings for approximately 15,000 new arrivals per annum.

Queensland’s population is now expected to surge by more than a quarter of a million people in the next four years, according to forecasts in the federal budget, as people continue to flood in from other states.

Additional forecasts suggest it will top 5 million by the middle of the next decade.

 

Article Source: www.theurbandeveloper.com

 

 

 

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Gold Coast

Why Siera Group chose Chevron Island for Tapestry

Chevron Island ,Tapestry

To make the move from one property market to another is a huge step for any developer.

It often brings an element of uncertainty and unpredictability.

But the approach and due diligence by Siera Group’s Founder and Managing Director Brent Thompson will be one that will breed optimism over pessimism in to the market, compared to other developers who have been jumping head first into one of Australia’s most in demand pockets for the last two years and are now facing challenges.

The Brisbane-based boutique developer have not only taken on a new project type, but a completely new location, by venturing down to the Gold Coast to tackle the booming apartment sector.

Thompson, who has a highly regarded CV as a board member at the UDIA, as well being a prominent developer around Brisbane’s inner-ring for many years, spent six to 12 months splitting his time between Brisbane and the Gold Coast, understanding everything about the local market, what people were buying, and what was being developed.

The result is Tapestry, a 22-level arts-inspired apartment tower, designed to be in keeping with Chevron Island’s growing standing at the cultural arts hub of the Gold Coast.

“What drew us to this site for Tapestry was really Chevron Island itself and the fantastic community that is literally on the doorstep of Surfers Paradise, in the heart of the Gold Coast,” Thompson said.

“Chevron Island is a tight knit community with a high street full of cafes, restaurants and boutiques, as well as nearby links to HOTA, the home of the arts precinct, which is just across the Green Bridge and just a short walk from Tapestry.

“After all the research and understanding Chevron Island as a whole, it really felt like it was the perfect place to deliver a project like Tapestry, where we’ve created this phenomenal amount of amenity and beautiful residences that locals will be able to move into and downsize.”

Thompson said what makes makes Chevron Island so great, and not just the community piece, is the locality and how easy it is to access everything on the Gold Coast from Chevron Island.

“We’re only a short, flat walk into Surfers Paradise, where you’ve got the beautiful golden beaches as well as an immense amount of shopping and retail precinct.

“We’re seeing a great deal of gentrification though Surfers Paradise, as well as Chevron Island, as we’re seeing this increased densification of these areas.”

Tapestry has been designed by the local architecture firm BDA, whose brief was to merge art with architecture.

The result is a striking building of 113 apartments, featuring a mixture of vertical blade walls and horizontal slab edges which respond to available views and natural light.

The local aspect in the creation of Tapestry was one of the key focuses for Thompson.

Aligning with the Gold Coast City Council’s efforts to make Surfers Paradise an arts and cultural hub, Siera also engaged local artist Tania Blanchard to create a piece of artwork that will hang in the lobby when completed.

Article source: www.urban.com.au

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Developments

Paradiso Place set to redefine living – Surfers Paradise, Gold Coast

Paradiso Place set to redefine living, Surfers Paradise GC

Locals are dominating the apartment sales at Paradiso Place, the new premium residential precinct planned for an entire city block in northern Surfers Paradise on the Gold Coast, with Tower 1 of the three-tower mixed-use development instantly appealing to a couple who purchased two apartments.

Locals Martyn Shedd and Amy Degenhart purchased two apartments; one to occupy and a second apartment as an investment to accommodate visiting family and friends.

It’s a huge vote of confidence in Paradiso Place from the couple, who are directors of an award-winning architectural firm specialising in the urban design space.

After many months of due diligence, it was Paradiso Place that ticked off their long list of criteria for the ultimate oceanside apartments.

The $800million Paradiso Place is a landmark development of distinction being developed by SPG Land on an 11,483 sqm whole city block site between Surfers Paradise Boulevard and Ferny Avenue at the northern end of Surfers Paradise on the Gold Coast, consisting of three residential towers sharing a ground-level retail and dining plaza and a level one podium with extensive five-star, resort-style amenities.

“As an urban designer and architect, we have a full understanding of placemaking, so we are highly sensitive to the visual environment and what sets Paradiso Place apart for us is the way SPG Land is creating a village, not just apartment buildings,” Martyn and Amy said.

“We respond to the way spaces work and how people relate to them. This notion of living close to amenity you can walk to is important to us and the facilities provided at Paradiso Place are one of the main reasons why we chose to live there.

“The whole development has been really well designed to support lifestyles of the future. To have access to five-star resort amenities, a retail and dining precinct on the ground level, plus a whole floor within our own building dedicated to co-working spaces have been some of the driving factors behind our decision to purchase two apartments.

“The 2.95m ceiling height was another drawcard. We know how important the vertical space is and the floor-to-ceiling windows really capitalise on that. Not only does it feel more spacious, but there are practical aspects too, like extra cupboard space.

“Paradiso Place will also have a porte cochère and a separate surf entry, which were items on our wish list that we didn’t expect to find.

“We have no doubt that our apartment at Paradiso Place will be the right fit for us.”

Paradiso Place set to redefine living Surfers Paradise

Paradiso Place set to redefine living GC

Tower 1 of Paradiso Place offers 258 well-appointed one, two and three-bedroom apartments across 38 levels, with ocean views. One-bedroom apartments start at $525,000, two-bedroom apartments begin at $777,000, two-bedroom plus multi-purpose room apartments are priced from $1,248,000, and three-bedroom apartments from $1,549,000. Details on the two penthouses are yet to be released.

Luxury apartment marketing agency TOTAL Property Group is managing the apartment sales of Paradiso Place and has reported strong interest from a wide range of local buyers, along with interstate and overseas purchasers either relocating to, or investing in the Gold Coast.

“We are predicting continued growth for the Gold Coast this year with higher buyer and rental demand driving the market,” TOTAL Property Group Managing Director and Paradiso Place Marketing Manager Adrian Parsons said.

“The Gold Coast lifestyle is attracting a large migrating population as well as investors with their eye on hot property destinations now that international travel has returned.

“The apartments at Paradiso offer incredible value and are an affordable option for a premium apartment close to the beach with ocean views.

“SPG Land is setting new standards for lifestyle residential developments and has given a great deal of consideration to creating highly desirable living spaces with apartments in Tower 1 having ocean views and market-leading 2.95m ceiling heights in the living areas and 2.65m in the kitchen and bathrooms.

“The extensive amenity provided at Paradiso Place and in each of the three towers is indicative of SPG Land’s commitment to world-class innovation and revolutionary design of smart, efficient residential homes that offer high quality lifestyles.

“Paradiso Place presents an exceptional residential opportunity for apartment buyers looking to own a luxury apartment close to the beach, all with ocean views and the highest levels of amenity and walkability.”

More information on apartments at Tower 1 can be discovered at the expansive $4m Paradiso Place Sales Gallery that includes two full-scale apartments, a spacious grand foyer showcasing design features of Tower 1’s lobby and an impressive 2.5-metre scale model of the three-tower development.

A 60sqm immersion room and virtual tours of the Paradiso Place development enable purchasers to experience the views, location and SPG Land’s vision for Paradiso Place, while free onsite parking offers purchasers the opportunity to spend time exploring the full-sized apartments, quality of luxuriously-styled finishes and extensive amenities throughout Paradiso Place.

 

 

Article source: www.yourneighbourhood.com.au

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Gold Coast

Rents to rise in popular Gold Coast suburbs

Rents to rise in popular Gold Coast suburbs, Paradise Point

TENANTS in two Gold Coast suburbs should prepare themselves for a potential rent rise, a new report has warned.

The quarterly HOOD.ai Tenant Report identified the top 20 locations across the state where landlords were likely to push up rents at their next rental reviews, with tenants in Paradise Point and Merrimac on the Gold Coast firmly in the firing line.

Renters in Paradise Point, most famous for its rich-lister enclave of Sovereign Islands, have been hit by a staggering 47.5 per cent rise in median rent in the past 12 months.

Second only to houses in Burrum Heads in Maryborough, which had in increase of 51.5 per cent.

The report shows that the median rent in Paradise Point is $745 a week, with vacancy rates remaining tight at 0.7 per cent, which is up from $505 a week and a 0.9 per cent vacancy rate in 2021.

In Merrimac, which scraped in at No. 20 on the list, the median house rent has hit $650 a week this year, up from $520 in 2021, a rise of 25 per cent. The suburb’s vacancy rate has dropped from 0.7 per cent to 0.4 per cent.

HOOD.ai founder and CEO Tommy Fraser said the report highlighted the issue of rental affordability.

“Paradise Point has seen vacancies tighten over the past 12 months, perhaps because it’s such a prestigious waterside suburb,” Mr Fraser said.

“This is driving rental prices higher.

“Moving a few suburbs away won’t offer any reprieve, with the wider market seeing rental increases of 25 per cent for houses and 14 per cent for units in the past 12 months.”

“It is hard to see things easing in the short-term, with very few building approvals in the pipeline for houses or units.”

“Vacancy rates are low in many parts of Australia, and often falling as well, which is putting upward pressure on rents.”

Rents to rise in popular Gold Coast suburbs,Macadie Way

Three-bedroom 31 Macadie Way, is available to rent for $750 a week in Merrimac.

To make sure every suburb had a legitimate rental market, suburbs were excluded if they had fewer than a total 500 properties and if rental properties made up less than 10 per cent of the total housing stock.

Suburbs were then ranked based on the highest change in suburban rental rates during the previous 12 months.

Property research consultancy Suburbtrends supplied the data.

Top 20 locations in Qld where landlords are likely to push up rents.

1. Burrum Heads, Houses

2. Avoca, Units

3. Paradise, Poin, Houses

4. Chelmer, Houses

5. Chuwar, Houses

6. Pomona, Houses

7. Beerwah, Houses

8. Gympie Unit

9. Bungalow Houses

10. Black Mountain, Houses

11. Corinda Houses

12. Yeppoon Houses

13. Jindalee Houses

14. Karana Downs Houses

15. Jones Hill Houses

16. Peregian Springs Houses

17. Tin Can Bay Houses

18. Hawthorne Houses

19. Montville Houses

20. Merrimac, Houses

 

 

Article source: www.realestate.com.au

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