Gold Coast property market is now more expensive than the Qld capital Brisbane, with 2020 property investment median house prices of $650,000 and $589,000 respectively compared to Brisbane at $536,000, the last time Gold Coast real estate had such a substantial premium to Brisbane property was 10 years ago. This might be a sign of the future with a huge wave of downsizing due to unfold over the next two decades across Australia.
Queensland’s best sea change locations, such as the Gold Coast and Noosa have long been favourite destinations amongst downsizers looking for a more relaxed life.
Within Brisbane, southern migrants and local upgraders are favouring premium property in blue chip inner ring areas close to the CBD and/or river.
This has led to above average growth in desirable neighbourhoods like Hamilton (median house price up 38.5% to $1.565 million), Paddington (up 15% to $1.15 million), Bulimba (up 11.3% to $1.307 million) and Auchenflower (up 9.5% to $1.095 million).
While a temporary oversupply of ordinary one and two bedroom apartments persists in Brisbane’s inner city, exacerbated by weakened investor activity, there is solid demand from downsizers for large luxury apartments in the $1 million-plus range in buzzy restaurant and entertainment precincts.
Australia’s favourite seachange destination is more appealing than ever before, with the Gold Coast amongst the top 10 destinations of all capital city migrants, attracting 19,400 people from the eight capitals, including 8,800 from Brisbane.
The opportunity to work remotely, set up a home business or take up one of thousands of new jobs is a big drawcard for the Gold Coast and Sunshine Coast, which both have airport access.
The Sunshine Coast also has strong economic credentials, with the redevelopment of Maroochydore CBD and the Sunshine Coast Airport expansion underway.
The Sunshine Coast Regional Council is planning light rail by 2025 and a Business and Technology Park adjacent to the new university. Future growth is assured with major infrastructure projects such as the $1.6 billion Second Range Crossing and the $10 billion Brisbane to Melbourne Inland Rail Project set to advance the region.
South East Queensland property market provides a golden triangle of opportunity today – from the Gold Coast to the Sunshine Coast, including Brisbane and west to Toowoomba. This region offers the best short-to-medium term opportunities for capital growth, as well as the most desirable lifestyle in Australia.
Amongst the thousands of southern migrants relocating north, there is currently a clear preference for beachside living, with the Gold Coast and Sunshine Coast favoured over Brisbane.
These two regions have weathered the mining downturn particularly well, with significant local infrastructure spending, jobs growth and the 2018 Commonwealth Games on the Gold Coast offsetting the impact.
About 5,200 Sydney siders and 2,500 Melburnians moved to the Gold Coast in FY17 and a further 1,500 migrated from Melbourne to the Sunshine Coast.
This has translated into better property price growth in the regions, with house prices rising 4.8% on the Gold Coast and 6.1% on the Sunshine Coast compared to 3.1% in Brisbane over the past 12 months. Property investors have been waiting for this.
Economic growth and jobs are closely tied to every property market’s performance and Queensland has suffered in the shadow of the mining downturn.
But as discussed in the newly released annual McGrath Report 2020, things are changing, with boosted tourism, surging gas exports and the strongest annual growth in jobs in more than a decade combining for a comeback.
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.
With the Melbourne and Sydney property markets overheating and now starting to come off, we’re seeing more and more interstate and overseas buyers looking at Adelaide. It’s starting to head towards a sellers’ market and heading in the right direction.”
“The amount of listings has been down lately but the market is very stable. We haven’t had the same cross-market strength of Melbourne and Sydney over the past 12 months but it’s evening out to be quite a steady market. The price point in the inner-metro area of the second homeowners moving up is starting to mesh with the baby boomers looking to downsize, so there’s this crossover of markets taking place in that $600,000 to million-dollar bracket.”
According to the latest NAB Residential Property Survey, Adelaide property values could see further growth in the months ahead, with house prices expected to increase 1.7 per cent in 2020, the equal highest forecast growth with Hobart.
While the predicted growth is modest, it is still significantly ahead of the forecast average for combined capital cities, which are showing a drop of 0.1 per cent.
Adelaide is also up 0.2 per cent on the 1.5 per cent growth forecast last year