Southern Buyers to Buy into Gold Coast Property Market in 2016
Several factors lead real estate experts to believe that the Gold Coast is the place to watch for growth in 2016.
Grant Harrod, chief executive at LJ Hooker, expects growth between 5 and 10 percent for the area over the next two years. Robert Mellor of BIS Shrapnel expects even greater growth, as much as 14 percent.
Several factors underlie this optimistic forecast.
The lower Australian dollar, affordability, increasing tourism and the upcoming Commonwealth Games slated for 2018 are amongst the reasons that real estate and investment experts estimate double-digit figures for the Gold Coast.
Effects of the Commonwealth Games
The increase in jobs associated with preparing for the Commonwealth Games has brought more people to the area. More people are looking for rentals as well as long-term purchases.
Light Rail System
In anticipation of the Games, a light rail system has been constructed.
The new multi-stop line connects suburbs, popular tourist destinations and business centres with the city of Gold Coast. The second phase will link the system to Brisbane.
Completion of the second phase in time for the Commonwealth Games will provide a fast and efficient way to travel between Brisbane, Gold Coast amenities and game venues.
Expansion of Gold Coast Airport
Plans to increase capacity at the Gold Coast Airport will enhance accessibility for visitors from home and abroad.
The airport currently operates at capacity at peak times. The expansion will add extra space to accommodate larger aircraft and make travel more efficient for the 126,000 visitors anticipated to arrive for the Games.
Currently, the airport serves 5.8 million passengers each year.
Recent Real Estate Sales
The scenic area and affordable prices are attractive to both foreign investors and local residents. Several properties were sold in December 2015.
Isle of Capri was a hot spot, with 18 The Lido sold for $2.28 million to a Chinese buyer. Another buyer purchased 6 St Pauls Place for $790,000.
For those who don’t know the Coast, Isle of Capri is a high-end suburb on the Nerang River, inland from the beach between Surfers Paradise and Bundall.
Waterfront properties are popular as exemplified by those on offer at Paradise Point.
The subdivision is located on an inland spit west of South Stradbroke Island. The multi-story waterfront residence at 9 Dobell Ave. sold for $1.11 million.
A three-bedroom home in Paradise Point was sold to a Western Australian family for $400,000.
Another investor plans to rent out the two-bedroom, two-bathroom apartment he purchased at Mermaid Beach for $340,000.
A local buyer purchased a two-story duplex for $605,000 at 2/59 Sunshine Parade, Miami.
Several properties were sold at auction, including one at Burleigh Waters for $740,000 and another at Ashmore for $560,000.
Forecast for 2016
Andrew Wilson of Domain estimates a 5 to 10 percent price growth for 2016. Other financial analysts note that high-end beachfront property in the area is particularly desirable to foreign investors and tourists.
One suggested that the value of these properties could triple during the next five years.
As with all real estate forecasts, some advisors are cautious. Oversupply can cause property values to decrease. But as the population grows and buyers look for affordable housing, Gold Coast offers a relaxed lifestyle and attractive setting.