The Gold Coast’s time to shine?
The Gold Coast property market has shown some promising signs in the last 12 months. But will the future continue to look bright?
After a few years of difficult challenges, the property market has finally been gathering steam in the Gold Coast, particularly so in the central suburbs ranging from Main Beach to Mermaid Beach and out to Nerang.
Consequently, price increases have ensued for well-located dwellings due to a lack of supply, low interest rates and positive market sentiment, according to the latest Herron Todd White report.
“The best results have been found for residential dwellings with water frontage, located near the beach or presented to a high standard,” says the report.
In general, there are opportunities for investors looking at units, as price levels are still below the peaks of the market in 2007 and 2008.
“In terms of the unit market, confidence has increased however the capital gain has not been as significant when compared to dwellings,” says the report.
It’s the affordable end of the unit market across Gold Coast suburbs that has traditionally performed better than the luxury end, as the main demographic groups targeting this area are not looking spend too much money.
Economy picking up
The impressive thing about the Gold Coast for investors looking now is that its growth drivers are on target to kick into gear over the next few years.
For one, the Australian dollar is falling and the Gold Coast’s mighty tourism industry is ramping up. This is already its largest industry, as tourism accounts for about one in four jobs in the city.
And the Gold Coast should only become more popular once it hosts the 2018 Commonwealth Games, which are expected to create up to 30,000 jobs and spark further rapid infrastructure development.
The extensive light-rail project, which opened in July 2014, may be expanded to cater for the demand expected during the Commonwealth Games. So far it has already has exceeded expectations in terms of the number of people using it.
Along with tourism, construction and retail – its traditional strengths – the Gold Coast economy has diversified in recent years, with growth in the education, marine, food and sports industries.
Another recent highlight is that resources companies have contributed almost $718m to the Gold Coast’s economy in the last financial year. This has resulted in $118m paid in wages to more than 1,000 full-time employees and $222m spent locally on goods and services, supporting at least 441 local businesses.
Additionally, the Pacific Fair Shopping Centre at Broadbeach
is getting a massive $670m transformation, with work scheduled to be completed by the end of 2016.
The Gold Coast is also home to a major film industry and the third biggest film production centre in Australia (after Sydney and Melbourne).
In 2015 the new Pirates of the Caribbean
movie will be filmed in the Gold Coast (as well as in Port Douglas and locations north of Mackay). The film is predicted to add $100m to the Queensland economy and create thousands of jobs locally.
SUBURB TO WATCH
Mitchelton: Haven for families
For those looking to raise a family, it would be a difficult task to find somewhere better to do this than Mitchelton. Located just 8km from the Brisbane CBD, Mitchelton has a major shopping centre, lots of quality schools, parks, the Mitchelton Farmers Markets, restaurants and trendy cafes. It also has plenty of leafy streets, which add to the tranquillity and safe feel of the suburb. And because it’s hilly, this means many properties have excellent city views.
The fact that there’s just 0.58% of unit stock on the market means Mitchelton is not likely to be heading for oversupply any time soon. The strong demand has seen unit prices grow by a healthy 10% over the past 12 months, but given just how popular this suburb is becoming, it’s not too much of a stretch to see the growth momentum continuing in the short to medium term.
The median unit price of $388,200 is also good value compared to that of neighbours like The Gap, where it’s sitting at $450,000. In addition to families, this is also becoming an increasingly hot suburb for professionals and retirees.
Units on Blackwood Street are especially popular. Not only are they on the doorstep of the buzzing café precinct, but they are also close to the Mitchelton train station, Brookside Shopping Centre and the bus network to the city. For a modern two-bedroom unit there, expect to fork out around $370,000. Other streets with sought-after units include Lockrose Street, Grovely Terrace and Chessom Street.
Can you afford to buy in this suburb? Find out how much you can borrow