By Herron Todd White
Central West and Scenic Rim Property Updates
2019 saw an easing in market values following the effects of the royal commission into the banking sector, however the market is set to improve in 2020. A number of real estate agents in the local area have stated that confidence has returned since the result of the last federal election.
The central west and western Gold Coast region provides first-home buyers and investors with entry options in areas such as Highland Park, Nerang, Pacific Pines, Maudsland, Upper Coomera and Oxenford. The entry-level market will remain strong due to the government first home grant of $15,000 and home loan interest rates continuing at record lows. Many home buyers are keen to enter the property market before prices go up further.
Local infrastructure projects and jobs growth will contribute to the improvement. Also, cashed-up interstate buyers continue to see value or a better lifestyle in the Gold Coast market. Property types popular in the region include house and land packages, second hand detached dwellings and attached duplex and townhouse or villa units that either meet first home owner requirements or provide investors a rental return.
A niche market seen within the region is Tamborine Mountain, located on the western hinterland with a variety of tourism based cafés and restaurants, wine outlets and wedding reception establishments. Over the past year or so, a number of owners have been tapping into the Airbnb market by extending their homes into dual living floor plans and leasing part or all of the home on a short term basis. Many owners who have done this advise of very good rental demand and return.
North West Region We believe that with the record low interest rates at present, the year ahead looks like we should have some improvement, albeit at a moderate rate, however with the economy not going very well at present compared to the mining boom in the Howard government era, combined with our current massive bushfire disaster and rising tensions in the Middle East, we can expect a large hit on the economy. With this in mind, the growth predicted by some economists for 2020 could all disappear and push the housing market in the other direction. What we have to say at present is that it is really wait and see time.
The housing market in the north-west includes significant construction however in the past 18 months, construction in the region has been deflated. Prior to this, developing estates were thriving with constructions and land sales and as a result we have seen an oversupply of new housing with many vacant houses and second hand modern dwellings having to be heavily discounted to achieve a sale. With the slow down in construction, we hope to see a catch up of demand to supply. Yarrabilba and Flagstone are the ones to watch.
Southern Gold Coast / Northern NSW Property Updates
The northern New South Wales and southern Gold Coast market became segmented towards the end of 2018 with mixed results continuing into the first half of 2019.
Throughout the second half of 2019 however, agents advised that stable prices were seen along the coastal areas and in some instances, reported evidence of growth, particularly in the coastal suburbs of Coolangatta, Kingscliff and Casuarina.
Investment in further infrastructure throughout the area, with projects such as the Tweed Valley Hospital and the approved continuation of G:Link into Stage 3, has improved general market sentiment which should continue in 2020. It would appear that a slight spike in investor activity has occurred across the board with easing lending policy post the royal commission as well as an increase in domestic migration to the southern Gold Coast and Tweed Shire.
Central Gold Coast Property Updates
Given the positive final quarter of 2019, the central Gold Coast area is anticipated to remain fairly buoyant throughout the first half of 2020. Sales activity spiked during September and October 2019 and local agents have reported that good levels of demand continued throughout holiday period for a broad range of property. The stable market conditions in the Sydney and Melbourne property markets along with the low interest rate environment and easing of lending policy has given confidence to local buyers, particularly those seeking to purchase property priced in the higher price brackets. Burleigh Heads and Burleigh Waters remain hot spots, however more recently we have noticed good sales activity in the suburbs of Miami and in Sorrento (Bundall).
It will be interesting to see how property will perform within the Isle of Capri (Surfers Paradise) over the year. The Isle of Capri is regarded as one of the preferred residential waterfront areas within the established areas of the central Gold Coast, being within close proximity to the Surfers Paradise CBD. A fairly large infrastructure project (road bridge upgrade) has commenced which aims to improve traffic flow through the locality (to and from the CBD area). The expected completion of the project according to local council is mid 2021.
In the meantime, residents are likely to be disrupted by the project due to increased traffic congestion caused by the ongoing road works. We will wait to see if the project has any significant impact on property sales in this pocket.
The unit market may experience slightly tougher conditions in 2020 compared with 2019. This market (particularly within Surfers Paradise and Broadbeach) is heavily reliant on investors from interstate and overseas. With a good volume of new unit stock introduced in 2019 and more high density projects due to be completed this year on the central Gold Coast, there is some concern about a potential oversupply in this area. On a more positive note, general feedback from local real estate agencies suggests that demand for rental properties has remained firm and rental values are trending upwards.
Speak with a Gold Coast Mortgage Broker today.
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.