Gold Coast property investment in 2017 is continuing to improve. Gold Coast’s property market may be set to outperform the rest of the Queensland property investment market over the next five years, fed by foreign investment and tourism growth.
Improved employment levels in retail and health sectors had also led to improved confidence and in the next 12-24 months many analysts predict Gold Coast property will outperform other markets in terms of investment and growth.
Development and activity on the Gold Coast has been good for jobs growth over the past 12 months, while tourism is starting to be quite steady as well.
A percentage are offshore investors but the biggest chunk are more your traditional Gold Coast property investors who come out of Sydney and Melbourne. The returns are better here because in Sydney the prices have gone up but rents haven’t by the same proportion so their yields are much lower.
Billions were being spent on infrastructure, lifting the entire region, he said, with major events including the Commonwealth Games in 2018.
Now through to three or four years we see some solid activity and a renewed Coast market outlook. We’re already starting to see a facelift.
A lot of investors have been waiting for this.
RP Data figures for 2017 reveal the Gold Coast has seen the best recovery in Queensland in its housing sector, and industry experts expect the momentum to continue.
CoreLogic RP Data’s head of research Tim Lawless said it appeared lifestyle markets like the Gold Coast were back in favour with buyers as they perceived them to offer good value currently.
Ray White Broadbeach principal Larry Malan agreed pointing towards the number of buyers taking advantage of low interest rates to upgrade to larger and more expensive properties.
Mr Malan said buyers were also positioning themselves for the lead-up to the 2018 Commonwealth Games when he expected the market to be at the peak of the cycle.
“What we have seen in the last 18 months will probably continue heading into the 2018 Commonwealth Games.” Mr Malan said.
“I think the market will peak by 2017 and 2018.”
Mr Malan has forecast cumulative growth of 12 per cent for houses over the next two years.
Villa World chief executive Craig Treasure said the Gold Coast was in the early stages of the property cycle with the market rebuilding over the past two years and growth coming off a low base.
Mr Treasure said he was seeing strong demand return to the market after years of lacklustre growth driven by increasing consumer confidence and low interest rates.
A positive sign for the market was the return of first-home buyers, which made up 20 to 25 per cent of Villa World’s customers Mr Treasure added.
He expected the momentum to continue over the next two years but at a “slow, steady rate”.
“I think we’ll see sensible, subdued growth” he said.
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