The month in review: Gold Coast
By Herron Todd White
July, 2010
The first six months of 2010 have not performed well
for properties priced under $500,000. First home buyers
drove the market up in the vicinity of 5% to 10% through
2009 on the back of record low interest rates, government
stimulus and the overall Australian economy performing
well, which enables employment to stay at acceptable
levels. With many buyers being brought forward into
2009 it has a left a ‘sag’ in the market under $500,000.
This decrease in demand and increased stock levels
for property in this price bracket has seen prices ease
by around 5%. If this trend continues the market could
further ease up to 10%.
Given the easing in property prices and current
oversupply of stock it has created a buyer’s market which
has given the buyer the opportunity to negotiate hard
with a number of vendors to gain the best possible result
for themselves.
Southport/Labrador
A number of major infrastructure project are currently
under construction within the Southport/Labrador
locality which will have a positive impact on both property
prices and future yields which can be achieved. These
projects are The Broadwater Rejuvenation Project, Rapid
Transport System and the Gold Coast Hospital. A savvy
buyer would be happy to park their ‘Lazy half a Million’ with such large government funded project currently
under construction.
Parkwood
Parkwood is a central residential suburb of the Gold
Coast with easy access from the Smith Street Motorway
to its southern and western boundaries along with two
other major arterial roads aligning the northern and
eastern boundaries. The main feature of the suburb in
its early development was the Parkwood International Golf Course, which saw the area flourish with favourable
quality homes lining the course.
Whilst the course remains a feature of the area, selling
agents now place a greater emphasis upon the suburbs
close proximity to Griffith University and the Gold Coast
Uni Hospital, which is currently under construction.
Whilst there is sure to be growth in the area over the
coming years (perhaps minimal in the short term) it is
perhaps one of the few areas where a substantial rent can
be achieved from students who reside in the area in large
numbers.
In some cases investors have been able to positively gear
their properties as students’ demand to be in walking
distance to the Uni has allowed buyers to achieve
higher rentals than surrounding areas. The negative
press surrounding the Melbourne racial issues as well as
ongoing problems with the global economy, however,
has affected the numbers of international students and
in turn rental returns. This is unlikely to last long. Basic
three-bedroom villas/townhouses can be purchased
from the early $300,000s, with standard four-bedroom,
two-bathroom homes starting from about $450,000.
Carrara
Carrara is located on the eastern side of the Pacific
Motorway (M1) and is situated approximately 13km west
of Surfers Paradise on the western central Gold Coast.
Development comprises an established, mixed residential
area, with a wide variety of dry and wet housing ranging
from basic single level dwellings to multi-level luxury
waterfront/golf course front dwellings. Medium-rise and
townhouse complexes and duplex style properties also
make up the diverse residential area of Carrara.
Entry point into Carrara typically comprise a small, semimodern
styled, lowset brick dwellings containing three
bedrooms, one bathroom accommodation with a single
carport/garage constructed on a standard 600–750sqm
allotment with a price point of around $375,000. Every
now and then a house will sell below the low $300,000’s,
however generally there is a reason for the low sale,
such as mortgage stress, family reasons, house is in poor
condition and so forth.
Larger, four bedroom homes of similar quality with an in
ground pool are typically selling for around the $450,000
to $470,000 price range and these houses are constructed
on standard 600–750sqm allotments.
In addition to dwellings, modern, two-bedroom
townhouse units are generally selling for around $270,000
to $280,000, three-bedroom townhouse units generally
sell for around $300,000 and three-bedroom duplex units
are selling for around the $350,000 mark.
Services in the area are quite good and cater for just about
everyone’s needs. Some of interest includes:
• Emmanuel College.
• Lakelands, Palm Meadows and Emerald Lakes Golf
Courses.
• Carrara Kindergarten and Preschool.
• Carrara Markets.
• Gold Coast FC AFL Stadium (under construction).
• Nerang train station (running between Brisbane and
Robina).
• Numerous local convenience centres.
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