The Gold Coast property market is on a strong growth trajectory, underpinned by solid economic conditions and population growth, according to new research by CoreLogic.
The property analytics firm reported that areas of the city which feature an established mix of retail, social, transport and employment options are likely to see a strong performance.
The current uplift in market conditions, which show values have increased by 30 per cent in the five years to March 2017, are driven by the Gold Coast’s significant affordability compared to southern capital cities, the report reveals.
CoreLogic Research Director Tim Lawless said centrally located
Robina had emerged as one of the more popular Gold Coast areas, outpacing the wider city market on many key measures – recording a price premium, higher rates of capital gain, higher rental rates with attractive yields and strong selling metrics.
The report found Robina average house values to March 2017 were 8.4 per cent higher than the wider Gold Coast while the terrace home and apartment sector posted an average 11.5 per cent price premium.
“This premium indicates buyers place a high value on housing in Robina, which can also be seen in the strong rate of capital gain, with house prices increasing by 5.2 per cent per annum over the past five years,” Mr Lawless said.
“With strong selling conditions supporting further upwards pressure on values, Robina’s popularity looks set to continue.
“The fact homes are selling quickly, within 30 days on average, and vendors are applying minimal discounts – just 3.6 per cent for homes and 3.7 per cent for other properties – suggests buyers are acting quickly to secure property in Robina.”
The average rental return in Robina is also significantly higher than Sydney and Melbourne.
“The average rental return for Robina is 5 per cent for homes and 5.8 per cent for terrace homes and apartments, which is higher than most Australian capital cities,” Mr Lawless said.
“Robina’s position close to employment opportunities, transport, shopping, dining, services and lifestyle amenity plays a large factor in the returns being achieved.
“Sydney and Melbourne are showing yields under 3 per cent for homes and about 4 per cent for town houses and apartments. Considering a typical house in Sydney is 73 per cent more expensive, the Gold Coast market and in particular Robina is likely to be popular for investors.”
He said median rental rates for homes in Robina had also continued to climb, lifting 2.5 per cent per annum over the past five years to a median $560 per week, with the medium density sector recording gains of 4.4 per cent in the last 12 months alone.
Robina’s statistics have been bolstered by projects like
Robina Group’s $170 million Vue Terrace Homes development, which posted $25 million in off-the-plan sales, with 68 per cent of stage one’s 71 three-bedroom, plus media, dual-level terrace homes, now sold.
Construction on Vue is due to start next month.
Originally Published: https://www.theurbandeveloper.com/