The Gold Coast real estate market is currently receiving a huge number of investors. Currently, real estate professionals have been receiving calls in regards to the properties in Gold Coast.
Strong investor and home buyer interest are behind increased attendances at Gold Coast auctions, according to Gold Coast buyer’s agent Tony Coughran.
With more investors turning their attention to the coast’s affordable opportunities, Coughran said that there’s no doubt the market is heating up.
“Interstate investors have finally taken their hands out of their pockets and are coming up in droves.
“Many are diversifying their portfolios as they move away from the affordability issues, poor returns and peaked out growth in strong Sydney and Melbourne markets,” he said.
He noted that some are investing now to get ahead of future growth, with plans to move in within a five-year time frame.
“Some are seeing value in lifestyle units, purchasing as an investment to be used partially for family getaways and then renting through peak periods for premium holiday returns,” he said.
However, high end houses are also in demand. He noted the sale of six bedroom waterfront 122 Tallebudgera Drive, Palm Beach which went to auction in early September securing a result of $1.35 million.
“At a recent auction I attended, one buyer hardly even got a shot in with two bidders in a room of 80 battling it out with their hearts and ultimately paying in excess of more than $90,000,” he said.
“The duplex had a fair market value of $720,000 but sold under the hammer for an astonishing $817,000.”
He warned investors to keep their emotions in check with these sorts of auctions to become more common, noting that his criteria for a property is 5% to 7% minimum gross yield, low vacancy rates and little or low body corporate fees.
“Locations close to the beach or outdoor attractions and infrastructure are preferable as are properties in sought after school areas,” he said.
“I also look for properties that have a point of difference – a second bathroom, extra car accommodation or side access, and those that offer opportunities to maximise depreciation benefits, if you can.”
Top 68 suburbs for growth in Queensland revealed
Top 68 suburbs for growth in Queensland revealed. New data has shown the top 68 suburbs in Queensland for capital growth over the last 12 months to June, with the number one spot reaching triple digits.
Top 68 suburbs for growth in Queensland revealed
Outlined in the Real Estate Institute of Queensland’s Queensland Market Monitor report, REIQ CEO Antonia Mercorella said despite the ‘doom and gloom’ of the property market, there are still locations that are seeing large gains in profitability.
“A total of 68 suburbs throughout Queensland have delivered double-digit growth over 12 months, which is a really strong result,” Ms Mercorella said.
“And there are many more suburbs delivering strong single-digit growth. It’s a great market to be in at the moment.”
While south-east Queensland saw a lot of attention, there were some high growth suburbs found in central and northern Queensland.
The area with the strongest growth was Blackwater, which saw a rise of 151 per cent growth, which Ms Mercorella attributed to the resurgence of coal prices.
Aside from Blackwater, 10 other suburbs saw growth over 20 percent. These included:
- Spring Mountain with growth of 103.6 per cent;
- Collinsville with growth of 46.2 per cent;
- Minyama with growth of 45.8 per cent;
- with growth of 32.9 per cent;
- Hollywell with growth of 30.5 per cent;
- Miles with growth of 23.5 per cent;
- Mount Coolum with growth of 21.9 per cent;
- Dundowran beach with growth of 21.5 per cent;
- Boonah with growth of 21.3 per cent; and
- Idalia with growth of 21.3 per cent.
Ms Mercorella said the top 11 suburbs were indicative of steady growth across the state, but warned against calling it a ‘boom’.
“While we’re definitely seeing prices come back in western Queensland mining towns, such as Blackwater, these prices are still below their peak,” she said.
It’s unlikely we’ll see a return to pre-2013 prices in those areas anytime soon.”
While the top 11 suburbs show a spread of high growth suburbs through the state, 41 suburbs out of the 68 are located in the ever-popular south east corner of Queensland.
Of these, 15 suburbs were located in theCoast region, with the highest growing being Minyama, which ranked fourth overall.
The Brisbane region also saw a large number of high performing suburbs at 13. Hamilton was the region’s best performer and fifth overall.
Next was Ipswich with six suburbs, then the Gold Coast with four, Moreton Bay with three, while Redland and Logan suburbs did not rank.
Outside of south east Queensland, 27 regional suburbs ranked on the list, with the Townsville region recording four suburbs. Its highest performer was Idalia, which ranked 11th overall.
Next were the Cairns and Gympie regions, both recording three suburbs each. Cairns’ top performer was Palm Cove, which ranked 26th overall, while Cooloola Cove was Gympie’s top performer, which ranked 42nd overall.
While only recording one suburb, the Whitsunday region’s Collinsville ranked third overall.
The Bundaberg and Toowoomba regions both recorded two top suburbs, while the Banana, Charters Towers, Fraser Coast, Gladstone, Isaac, Livingstone, Mackay, Rocky, Scenic Rim, Somerset and Western Downs regions all had one top suburb each
The top 68 suburbs which experienced double digit growth over the last year to June 2018, according to the REIQ, are:
|Rank||Suburb||Median price||Capital growth over 12 months (as a percentage)|
|27||Charters Towers City||$142,500||14.0%|
Real estate market in southeast Queensland has made a comeback since the GFC
LAST week with the family in tow, we ventured up the Bruce Highway to the Sunshine Coast.
I was calling auctions at Maroochydore for a number of offices on the coast, so we decided to mix business and pleasure and make a holiday out of it.
It was no small auction event either. The offices had amassed 66 properties from entry level units, canal front homes and even beach front penthouses!
I was calling the auctions with my regular coastal auctioneering partner Dan Sowden, principal at Ray White Maroochydore and the day was decorated with highlights.
But the value on the Sunshine Coast, and again the Queensland market, for me was an absolute stand out.
Bidding on one apartment in particular, 119/223 Weyba Rd, Noosaville, paused at $85,000. It’s a studio apartment and while it wasn’t sitting next to, Sails, on Hastings Street, it’s not in the middle of nowhere either.
I couldn’t believe the numbers I was calling out. When no one pushed beyond $85,000 we made the recommendation to pass the property in and I see it’s now listed at $102,000. Unbelievable!
We also sold the million dollar plus penthouses and the glamour properties too. It took us about six hours and the event was filled with excitement and drama.
But it’s the value story that I think will surprise many people, it certainly surprised me.
The Sunshine Coast has a relaxed holiday lifestyle, it has amazing beaches and world class restaurants.
So with all that on offer there will always be multimillion-dollar homes on the Sunshine Coast, but sub $100,000 properties, even sub $300,000 properties are a genuine reality for the discerning buyer
Every school holiday, and as we step closer to Christmas, many Aussie’s will do what we did this week and head to the beach. They will likely have had to pay a peak season rate for their accommodation and quite often that can spark the idea of buying a holiday house.
The Sunshine Coast was one of the hardest hit markets in the GFC, this impact is still showing value today. If the dinner table conversation involves a coastal retreat, before you squash it on account of affordability, I’d head to realestate.com.au or grab a copy of the Sunshine Coast Daily, you too might be surprised by the value, there appears to be property for all budgets.
Originally published as Coast tourist hot spot where bargains can be found
Where you can rent in Brisbane for only $400 a week
While renters in southern capitals such as Sydney and Melbourne worry about how to pay each week – let alone how to save a home deposit – Brisbane tenants can affordably rent within cooee of the city.
Domain Group data shows that there are 14 suburbs in the Brisbane City Council area with median rental prices of just $400 per week.
While renting an affordable unit can see you living within a couple of kilometres of the CBD, middle-ring houses in suburbs such as Upper Mount Gravatt and Oxley can also be leased affordably, according to the data.
Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella said Brisbane offered tenants the “best of both worlds” due to the affordability of desirable rental locations.
“Probably one of the strongest benefits is that you don’t have to go very far from the CBD to reach an affordable price point,” she said.
“Suburbs such as Bowen Hills, Cannon Hill, Kelvin Grove, Morningside and New Farm are all well serviced by public transport and are all within five kilometres of the CBD – you would never get that in Sydney or Melbourne.”
Some of the suburbs have more than just proximity to the city to offer, she said.
Kelvin Grove has some of Brisbane’s best schools and is very well serviced with public transport options, Ms Mercorella said.
“Springfield Lakes is one of the most popular new areas, and at the last Census was one of our fastest growing regions in Australia,” she said.
“It is a master-planned community that offers families a lifestyle option – lakefront living with a community feel.
“Morningside is a suburb in transformation, with a number of new small-lot developments renewing the area. It is also a suburb in close proximity to the prestige Hawthorne and Bulimba pocket at more affordable prices.”
Ray White New Farm’s Haesley Cush said inner-city tenant demand continued to grow strongly, with unit rental prices softer due to the ample supply of new apartments that had hit the market.
“Developers were so intent on letting out their properties because they had rental guarantees … that incentives came into the rental market for residential property for the first time in as long as I can remember,” he said.
“That put downward pressure on mum and dad investors with older units to compete with a brand-new unit where the developer not only has a better product in a lot of ways, but they were also offering incentives.”
Mr Cush said the new competition resulted in rents falling by about 30 per cent in New Farm. Lower interest rates were lessening the financial impact on landlords, however.
With supply of new units still high, most landlords were opting to retain their existing tenants and slowly increase the rent over time rather than take a punt on the open market, he said.
Mr Cush said southern buyers and renters were starting to stake their claim on the Brisbane rental and sales markets.
“I do think they won’t return once they get up here. The weather is better, school fees are cheaper, and it’s not the compromise in lifestyle for the difference in price,” he said.
“It does have less people, you don’t get as good a meal on a Monday, Tuesday or Wednesday, and you can’t dine after 9.30pm still in most places, but for what is in some cases half the rent and sales price, we’re not talking about half the lifestyle.”