THE PROPERTY DEVELOPMENT REVIEW
TPDR: I’m interested to hear about the local market here on the Gold Coast, what’s your take on overall sentiment from both buyers and sellers. We are in a fairly unique position here on the Gold Coast in that we have strong migration from southern states, due to more affordable housing, desirable lifestyle, and beautiful beaches. This has kept buyer demand at a good solid level We have an acute shortage of stock on the market, down by about 30% compared to previous years. Whenever there is more buyer demand than available stock, it reflects a strong market. We aren’t seeing significant price growth but overall it’s a balanced market with positive sentiment from buyers and sellers. We are not currently experiencing the downturn seen in other parts of Australia where there are more properties for sale than buyers. TPDR: Take us through the type of assets that are most in-demand from buyers across the region. The most active part of the Gold Coast use to be the central markets such as Mermaid Beach to Main Beach. But with all of the new developments occurring we are actually seeing demand spread right across the coastline from the Coolangatta border all the way up to Calypso Bay, and even out to Mount Tamborine. Unsurprisingly, most people who are looking to move to the Gold Coast have a desire to be near the beach, therefore the coastal strip in both housing and apartments is very strong. In terms of price brackets we are seeing the strongest demand falls within the price range of $800,000 to $1,500,000, driven mainly by those migrating north. Sadly, at the moment first home buyers have almost been squeezed out of the market. We are starting to see the return of investors buying stock around $400,000 to $600,000 range looking for returns.
The prestige market while still active is not as strong as it was, a lot of that buying demand came about because people were looking for homes that they could upgrade in to during the pandemic. While still healthy, and still big sales occurring, the buying demand here has settled. We continue to see strong demand for large apartments, 1 per floor units, east of the gold coast highway , and houses in Mermaid Waters, Broadbeach Waters, and Sorrento. TPDR: And in terms of the strength of the market long- term, what are the fundamentals that make the Gold Coast an attractive destination for both investors and residents in your view. Since the announcement of the Commonwealth Games, the Gold Coast has undergone a remarkable transformation, attracting around 18 billion dollars’ worth of investment in the region. This has resulted in significant improvements to infrastructure such as the light rail, the Star casino, Pacific Fair, sports stadiums, and shopping centres. Private sector investments have also upgraded the quality of restaurants and overall lifestyle. Consequently, the Gold Coast has become a vibrant and attractive city. So when the pandemic hit, the Gold Coast proved to be one of the safest regions in Australia throughout 2020 and 2021, which led to a significant influx of people. They soon realised what a great place it was to live due to its relaxed atmosphere, great schools, shopping, and dining options. This influx of people has now become an ongoing trend as more individuals are discovering the charm of the Gold Coast and all that it has to offer. The city’s impressive transformation has become a major attraction, and it is expected to continue in the future.
April / May 2023 – 69
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