The month in review: Gold Coast property market updates
By Herron Todd White
North/North-West Gold Coast Property Market
Mount Warren Park, Beenleigh and Windaroo are top of the list for the north-west. Whilst market activity and in some cases prices have come off a bit in recent months, it is still possible to find a value for money house or unit. There are options for those who want to buy and renovate for a profit or rental returns. Some positively geared options are also around.
The suburbs we have chosen are established older areas, not flooded with redevelopment, new estates or investors.
Onground, semi modern, circa 1990, bagged brick three-bedroom, one-bathroom villa with tiled roof and single-car garage. Property includes renovated kitchen, bathroom and new carpets. It rents for $310 per week with body corporate fees of $40 per week.
This property comprises a semi modern, onground, circa 1992, brick three-bedroom, two-bathroom dwelling with single-car garage and tiled roof. The property includes recent floor coverings and paint with original kitchen and bathrooms. Land area is 622 square metres. Property rents for $390 per week.
The compromises are that you are mainly looking at older properties which may require maintenance or updating soon. When you look at nearby suburbs such as Bahrs Scrub or Holmview where you can buy a new dwelling, these properties are usually priced up to the dollar and can often take some years before you see a capital gain given the premium paid for being new.
We consider there to be a likelihood of prices falling somewhat for most of this year in these locations, then hopefully a resurgence in the market thereafter. However at present, the rental market in these locations is pretty strong providing a good holding income in the meantime. The property to buy as a home or an investment are regarded as the same property in these locations.
Central North Gold Coast Property Market
Hollywell is a small suburb located just below Paradise Point and just above Runaway Bay on the Gold Coast, Queensland. It is often overlooked in property searches due to its size and well known surrounding suburbs. Hollywell features canal front properties with bridge free broadwater access to a number of sites, as well as broadwater views. Whilst the suburb does lack quality shopping facilities, restaurants and cafes, it is within walking distance to suburbs that offer these. Furthermore, public transport is readily accessible and runs straight through the middle of the suburb.
Price points within the suburb do range as the property mix comprises units, dry block houses and canal front houses. Over the past six months we have seen entry level two-bedroom, two-bathroom units being acquired for just under $400,000, dry block houses selling upwards from $525,000 and canal front properties with bridge free broadwater access from $900,000. Some examples for reference are:
Circa 1980, part two-storey, brick and tile dwelling with five bedrooms, three bathrooms, double lock up garage and tandem bay carport. Features updated kitchen with timber floors, updated bathroom, solar panels, concrete boat ramp, pontoon jetty and swimming pool. North-east, 18 metre canal frontage with bridge free broadwater access. Land area is 725 square metres.
The property is positioned on a local thoroughfare road that runs through Hollywell, which is a detracting factor. The property was on the market for 64 days and original asking price was $1.15 million.
68 Jacaranda Avenue, Hollywell sold 4 January 2019 for $530,000. A circa 1975, part two-storey, painted brick and timber weatherboard and metal dwelling with four bedrooms, two bathrooms, tandem lock up garage and tandem bay carport. Features basic fixtures and fittings, polished timber floors and a garden shed. The land is level and backs onto bushland, featuring local and bushland views. Land area is 506 square metres. The property was sold by a local agent with an asking price of $549,000 and was sold within 18 days.
We note that the difference between buying a home and an investment property is emotion. We believe that Hollywell offers buying opportunities for investors and home owners and all price points, as the best investment properties include owner-occupier appeal and long term growth for the Gold Coast region is looking good with strong migration and proposed infrastructure spending in the region.
Central Gold Coast Property Market
Mermaid Beach is the top pick, being a popular beachside, residential and holiday locality adjoining the central hub of Broadbeach to the south. Development in this location is very mixed, ranging from basic one or two bedroom units of modest quality to ultra-modern, prestige quality beachfront homes exceeding the $10 million level. There has been a high level of building activity in this suburb over the past ten years, with older style houses either substantially renovated and extended, or demolished and redeveloped with large prestige quality houses and duplex residences.
More recently, we have seen some older style properties being amalgamated and redeveloped into modern, medium rise and high rise residential buildings, particularly at the northern and western fringes of the suburb.
The beachfront precinct of Mermaid Beach along Hedges Avenue and Albatross Avenue is regarded as one of the most prestigious residential locations on the Gold Coast and just 100 to 200 metres back from these streets, you can still find terrific investment opportunities under $450,000.
Search for units on the beachside section (east of the Gold Coast Highway) of the suburb. All properties in this precinct generally have good accessibility to the beach. Avoid the budget units located in the holiday style resorts as these are typically subject to high body corporate and management fees. One-bedroom apartments have typically sold between $250,000 and $300,000 in the past few months, however, if you are in the market to buy, consider two-bedroom units in the $350,000 to $450,000 price bracket as they offer better value and are a larger unit. Look for circa 1970 to 1990 built two-bedroom apartments with low body corporate fees as these can potentially achieve a weekly rental value of $450 to $500 per week.
Gold Coast South Property Market
The best three locations for being able to buy champagne on a beer budget on the southern Gold Coast would be Burleigh Heads, Miami and Burleigh Waters due to the close proximity to the beach, shopping centres, highway access and leisure activities.
Between $300,000 and $400,000 will secure an original one-bedroom unit in an esplanade position in Miami. A two-bedroom unit will cost between $400,000 and $600,000 depending on age, location and quality within all three hot spots.
A 405 square metre block will set you back close to $700,000 in Miami. If you can’t afford the $700,000 price tag, you could compromise with a smaller original or renovated duplex in Miami or Burleigh Waters for between $500,000 and $650,000.
The next six months should see more stock come onto the market and if vendors are reasonable with list prices the market will hopefully become steady without some of the erratic sale prices we have seen over the past nine months.
If you are talking even budget beer tastes, the bare minimum to get into a property is $300,000 for a one-bedroom beach side original unit. Whilst the location is worth it being close to the beach, the returns and potential capital growth on this product are probably going to remain the same within the next two years.
A cross section of recent beer budget sales within the southern Gold Coast hotspots are as follows:
A one-bedroom beachside unit at 14/286 The Esplanade, Miami transacted in October 2018 for $300,000.
An entry level Miami duplex unit at 1/23 Doggett Drive, Miami sold in November 2018 for $465,000
If you are lucky enough to find an older house with room to spare, either put a second house or demolish and rebuild your dream house, $640,000 would have recently bought 42 Paradise Avenue, Miami.
Speak with a Smartline Gold Coast Mortgage Broker today.
Far North-Eastern New South Wales
The champagne locations include Kingscliff, Salt (Kingscliff/Casuarina) and Cabarita Beach (Bogangar) for the Tweed Shire – all the coastal towns! Their locality on the beach and small village-like feel, away from the hustle and bustle of the Brisbane and Gold Coast, are what makes these areas attractive. However, for those who travel up the coast for work, the commute is not too bad. Unfortunately, these locations are not too kind to investors and are more for the owner-occupier.
Price points in Salt (Kingscliff/Casuarina) are generally in the $1 million to $1.3 million price bracket for a house and Cabarita Beach (Bogangar) around the $700,000 mark.
However, if you want to get into these markets on a beer budget, you will need to look at downsizing to an older duplex, townhouse, villa or unit.
Kingscliff Hill which is quite a popular location with good views and close to town and the beach has quite a few 1980s style duplex units.
2/9 Gaggin Way, Kingscliff NSW 2487 sold for $530,000 on 20 December 2018 – The property comprises a semi-modern, lowset, circa 1985, brick two-bedroom, one-bathroom semi-detached duplex with single-car garage and tiled roof. Original kitchen and bathroom. Would rent for approximately $370 per week.
If you’re after something a little bit bigger but looking somewhere in the $500,000s, you will need to head a little further south to Cabarita Beach (Bogangar). The town is still a very popular location and within walking distance of the town and beach and a very popular location for surfers.
2/1 Red Ash Place, Bogangar NSW 2488 sold for $565,000 on 2 October 2018. The property comprises a semi modern, lowset, circa 1990, brick three-bedroom, two-bathroom, semi-detached duplex with single-car garage and tiled roof. New flooring. Original kitchen and bathrooms. Would rent for approximately $520 per week.
The catch of course with beer prices is that the dwelling is not a freestanding dwelling and you will need to look for a strata titled property in original condition. Of course there is opportunity to add value to the property by updating the interior.
The Tweed Shire market seems to be steady at the moment and prices have grown exceptionally from the lows of 2013. Right now, I would sit and wait for the market to pull back – what goes up must eventually come down.
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.