The Gold Coast Property Market
The Gold Coast property market has seen a good deal of growth in the last several years, a trend that continues to develop. Much of this is thanks to an increase in employment levels, which in turn results in more demand for properties in the area, and more construction
According to AFR, the Gold Coast market is “expected to avoid the fallout seen in other cities from tightening credit as strong domestic migration levels support demand.” Many home buyers and prospective rental tenants now choose to relocate due to the great lifestyle and new employment opportunities the Gold Coast has to offer.
Because of the increase in demand, house prices are on the rise and rent is increasing. Still, there are a number of affordable properties available, predominantly in the northern parts of the region.
Continued Growth, Bucking National Trends
According to RealEstate.com Australia, “A new housing value forecast report by CoreLogic and Moody’s Analytics predicted Gold Coast house prices would continue to climb off the back of steady growth over the past two years.” It is expected prices on the Glitter Strip will rise 2.2% in 2019 and 3.6% in 2020. On a national level, property prices are expected to see a 3% drop this year but climb 2.2% next year.
A new housing value forecast report by CoreLogic and Moody’s Analytics predicts that the Gold Coast will be a key member of Queensland’s “lifestyle” areas, all of which are expected to see growth. Also, on this coveted list are Wide Bay, Cairns and the Sunshine Coast.
This is partly due to an increase in per capita income in the Gold Coast, and also due to slow increases in supply that have not outstripped demand, unlike the situation in other areas such as Brisbane.
Another contributing factor to the rise in popularity of the “lifestyle” areas is the demand by overseas tourists, which has remained at a high level even though the economic changes of the past several years. According to the report, though Sydney and Melbourne can expect a decline, the Gold Coast property market is still expected to outperform these two cities.
Slow and Steady Winning the Race
While Sydney and Melbourne have enjoyed considerable growth over the years, the Gold Coast has experienced a growth at a steadier rate. Because more people are now coming to the area in search of jobs, the population is constantly increasing, which translates to more home sales and a greater need for rental properties.
Low housing prices on the Gold Coast are attracting home buyers from a broader age range. Now that more people than ever are working from home, it’s no longer necessary for many people to live in larger cities and more heavily populated areas.
Investing in Gold Coast Property for 2019
So, what are the best areas for investing in Gold Coast property in 2019? Suburbs are expected to experience growth this year and are a great place for those who are considering a move to the Gold Coast in the near future. In fact, the Real Estate Institute of Queensland (REIQ) recognised 70 Queensland suburbs that delivered double-digit growth over a 12-month period to June 2018, including the following hot Gold Coast suburbs to look out for this year: Hamilton (+32.9% one-year capital growth), Hope Island (+15.7%) and Hollywell (+30.5%).
The southern end of the Gold Coast area is also the site of some positive activity, featuring affordable properties and solid growth. Suburbs in the south to check out include Currumbin Waters, Palm Beach and Elanora.
Property Investment Moving Forward
One reason the Gold Coast is seeing so much steady growth compared to other cities is that the tourism industry, while still strong, is no longer the sole driving force in the area. Job opportunities and lifestyle options are major selling points for a lot of people who are looking for an affordable place to live outside the more traditional property hotspots. New infrastructure is also currently in development, including the $550 million Gold Coast Health and Knowledge Precinct and M1 upgrade. On top of this, the Gold Coast is a much more affordable place to live than some of the larger cities like Brisbane and Sydney.
The confluence of all these factors makes Gold Coast appealing for everyone, from property investors to home buyers, through to rental tenants. The lifestyle on the Gold Coast will continue attracting retirees who are looking for somewhere less crowded to settle down, while those searching for a great holiday home location will also find it enticing because of its international airport and nearby attractions.
It is also predicted that the economy will continue to diversify, and that, along with improved educational and health facilities, will only strengthen the Gold Coast property market as an investment option in the near future. So, if you’re thinking about moving to the Gold Coast now might just be the perfect time to act.