A mid-year real estate market report published by Herron Todd White, has found Gold Coast land values to have grown strongly, with Mermaid Waters, Mermaid Beach and Broadbeach Waters all seeing a 25-30% increase in land values through June 2015. According to their report, Gold Coast land values have shown an upturn, with a 10.7% increase over the past year.according to the Queensland Valuer General’s 2015 annual report dated 5 March 2015.
The report shows that 71.5% of transactions favor the sub $500,000 price bracket, and 23.5% fall into the $500,000 to $1 million range, with 5% going over $1 million. This demonstrates the great affordability in the Gold Coast, and agrees with the upsurge I have seen since last year of cashed up buyers from Sydney and Melbourne.
Very positive economic changes have been driving the property market on the Gold Coast including:
- Increasing population. Current Gold Coast population is 535,000, and projected to grow to 680,000 by 2021.
- Tourism is back stimulated by the lower Oz dollar and strengthened by new international flights direct to China and other parts of Asia.
- Increase in building development and infrastructure projects.
- Increased international investors including the very influential and growing Chinese investment market and cashed up Auckland based Kiwis.
- Increased interstate buyers with many cashed up investors from the very buoyant Melbourne and Sydney markets.
- Predictions of improving employment in the tourism sector and also boosted by the impending 2018 Commonwealth Games.
While the prestige residential market proportionately accounts for a small part of the market in terms of number of transactions, the prices are on the rise on the back of overseas investors, locals and interstate buyers taking a shine to mostly waterfront houses and a limited number of luxury high rise units.
The full Australia wide report can be downloaded here: June 2015 Month in Review – Herron Todd White