Gold Coast

The Smartline Report – October Edition

The month in review: Gold Coast

By Herron Todd White
October 2016

The most popular price point in the north-west Gold Coast and southern Logan area is the bracket between $380,000 and $410,000. At present and seemingly over the past two years, this range is very popular in Yarrabilba with owner occupiers (particularly first home buyers) and investors. There have been a large number of sales lately in this price range of very recently completed houses which have never been occupied. They are generally good value for money and provide the benefit of buying a new house without the lead in time and perceived stress related to building a home. Purchasers of completed house and land products benefit from different lending criteria and the limited paperwork compared to the additional documents and contracts required for construction loans.

In this price range you get a new 4-bedroom, 2-bathroom house with double lock-up garage located on lots ranging in size from 290 to 450 square metres with living areas of between 120 to 150 square metres.

In contrast to Yarrabilba, there is a limited market for standard housing above $550,000 in areas slightly further west including Jimboomba and the surrounding suburbs. This area is traditionally a rural residential locality. Buyers have numerous choice from new to second hand dwellings. A modern house can be purchased for around the $550,000 price point, typically constructed between 2008 and 2012 on around one acre with around 190 square metres of living area. These rural lifestyle properties are just that much further away from all amenities, schools, shops etc with longer travel times, however appeal to purchasers seeking a larger property than a standard residential lot.

These property types in the Jimboomba area are almost exclusively owner occupiers or investors who live short distances away.

Whilst prices in these areas have increased, they tend to gain momentum and decline quicker than more centrally located properties with shorter market cycles.

Central North
In the central north Gold Coast, Helensvale remains one of the boom areas. There has been a strengthening in the $500,000 to $650,000 price point. The buyer demographic is mainly owner occupier family buyers looking for spacious 4- or 5-bedroom homes on large blocks.

The photos show two properties purchased in this range. The first is a semi-modern dwelling purchased for around $550,000. The property is on a quiet street with good opportunity for capital growth through renovation. The second is a modern dwelling in a relatively new area of Helensvale. This property is a well presented 4-bedroom, 2-bathroom dwelling with a pool and covered outdoor areas selling for around $650,000.

One of the quieter market segments in the central north areas is semi-modern units and high rises around the Broadwater. In the Runaway Bay highrise precinct on Bayview Street and Oatland Avenue there have been less than five settled sales in the $700,000 to $1 million bracket. These buildings are mainly owner occupied by retirees and units are tightly held when market conditions are favourable.

The strongest performing central Gold Coast suburbs with regard to sales activity over the past couple of months include Broadbeach, Broadbeach Waters and Benowa.

Demand for Broadbeach units under $500,000 remains firm and detached housing within Broadbeach Waters up to $1.75 million continues to be highly sought after. The Broadbeach and Broadbeach Waters areas are becoming very popular due to their proximity to the beach, light-rail system, Pacific Fair shopping centre, boutique cafes and other various amenities.

Buyers with say $400,000 to $450,000 should find opportunities such as a partly or fully refurbished 2-bedroom, 2-bathroom low rise apartment within close walking distance to Broadbeach Mall and the beach.

Buyers with $500,000 to $750,000 should be looking to buy a non-waterfront detached house in Broadbeach Waters or possibly even a very basic entry level waterfront dwelling with canal frontage. The market has improved considerably over the past two years within this area and at present it is likely to be difficult to find any waterfront property listed under $700,000.

Buyers with $1 million to $1.5 million will likely find either a recently constructed good to high quality non-waterfront dwelling or duplex or a renovated, good quality canal front home in this price range.

Alternatively, buyers could also look at good quality 3-bedroom apartments in the heart of Broadbeach if beachside living is the preferred option.

Lately there has also been a good run of sales of waterfront homes in Benowa. Local agents have reported strong buyer enquiry for detached housing with either canal, lake or river frontage in the $1 million to $2 million price bracket in the Benowa Waters estate. It appears that buyers in this price range are still looking to take advantage of the low interest rate environment and possibly there are more opportunities in this suburb in comparison to neighbouring suburbs such as Sorrento, Bundall and Broadbeach Waters.

We are also seeing a growing trend of shorter selling periods in the more affordable suburbs such as Merrimac and Mudgeeraba. Detached housing in the $450,000 to $550,000 price range in Mudgeeraba remains highly sought after and it has been quite common for property in this price bracket to sell within a couple days of being listed for sale. Buyers with young families are the typical demographic in this area with affordability being a key issue in the decision making process.

There appears to be very good levels of demand in other central suburbs such as Isle of Capri, Bundall, Sorrento, Mermaid Beach, Mermaid Waters, Robina and Carrara, however, agents are suggesting that there are low stock levels in these localities at present and vendors’ expectations are rising. Potential buyers looking to buy residential property priced under $1 million in these areas must be prepared to negotiate quickly due to the high demand and shortage of stock.

Southern Gold Coast
On the southern Gold Coast and Tweed Coast the most active suburbs are those in proximity of the beach and amenities. These suburbs include Miami, Burleigh Waters, Burleigh Heads, Palm Beach, Coolangatta, Tweed Heads, Banora Point, Kingscliff, Casuarina, Bogangar and Pottsville.

The favoured price point among buyers for dwellings in the above areas on the southern Gold Coast is between $550,000 and $800,000. The price point among buyers for dwellings in the above areas on the Tweed Coast is between $450,000 and $700,000 excluding Salt at Kingscliff and Casuarina which is between $700,000 and $900,000.

Buyers generally active at this price point are young local professionals and families. The properties obtainable are generally renovated older style dwellings on the southern Gold Coast. In the Tweed Coast in particular Salt and Casuarina the properties would be modern dwellings typically having 4-bedrooms, 2-bathrooms and a double lockup garage. The photos below illustrate typical properties.

The market with the slowest activity is the rural lifestyle market, however it has improved over the past 12 months.

The slowest price point would be over $750,000. Buyers are generally families looking for privacy and green open space. This market is generally slower due to the distance from the coast and amenities such as shopping and schools.

Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © Smartline Home Loans P/L 1999 – 2016. Australian Credit Licence Number 385325

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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.