Increased sales are an encouraging sign for Gold Coast Property Investment market.
Like many coastal hot spots the Gold Coast market was hit hard by the GFC, resulting in a huge drop in property values and many forced sales.
New figures released by RP Data today, reveal the housing market is making a comeback.
House values have risen by 4.8 per cent in the past year although unit values have dropped marginally by 0.7 per cent.
Property transaction levels are up by more than 30 per cent in the year to the end of February, which RP Data analyst Cameron Kusher says should eventually flow through to help improve values.
“House values are up 4.8 per cent but there is not much of a sign of the unit market coming back as yet, but I guess the rate of decline in that market has definitely slowed over the last 12 months,’’ he says.
“If values continue to rise in the housing market we may slowly start to see a bit of a recovery in that unit market.’’
Rental returns in the house market increased by 2.2 per cent in the past year, although unit
rental rates are unchanged.
Mr Kusher says with the continued low buy in price for units on the Gold Coast it could be considered a good
time for investors to buy.
“I guess it is a good opportunity for investors.
“I still think obviously probably somewhere like Sydney or Melbourne is still more attractive at the moment because values are growing much quicker.’’
“Sure the rental returns are not there but the short term gain in a market like that is more attractive than somewhere like the
“We are starting to see early signs of growth but I don’t think anyone is expecting that the growth is going to be particularly strong.’’
Mr Kusher says investors with long-term views would see good opportunities in the
Gold Coast market now.
He predicts values will not ramp up significantly on the Gold Coast, it will be a slow and moderate recovery.
“We are still not seeing a huge amount of interstate migration into Queensland or into south east Queensland which really drove the market in the past but I think for the most part people are probably realising that values are not going to get any lower.’’
Original article published at www.news.com.au by Michelle Hele, Real Estate Online Editor Newscorp 30/5/2014