The Sunshine State shows promise as the Gold Coast begins to approach Hobart levels of demand
Confidence is rising in the coastal areas of Queensland with an increase in activity from local buyers.
“It’s good to see the confidence of 2017 going to another level in 2018 [with a] notable increase in local activity. Local buyers led the charge, which is a promising sign for the Gold Coast,” says Dane Atherton, managing director of Harcourts Coastal.
This positive sentiment comes as Sydney and Melbourne record declines in property values; interstate buyers are seeing the Gold Coast as a solid investment prospect that offers a valuable alternative to the more expensive markets to the south.
“They are not just buying here for the lifestyle; they are buying here because they see excellent value and growth prospects. And that, in turn, is spurring local confidence in the market,” Atherton says.
CoreLogic notes that right now, Brisbane's housing market is in contention to become the best performer among the capital cities in the next five years.
Affordability is a major driver of housing demand in this area, given the price gap between Brisbane and Sydney and Melbourne – the balance between house prices and median household income in Brisbane gives buyers more opportunities to own a home.
Population growth improves market conditions
The level of migration into Queensland is another factor that’s spurring growth; entrants include both overseas and interstate buyers. The southeast region has been experiencing the biggest boost. CoreLogic indicates that the net number of migrants entering Queensland from other states has actually exceeded that of Victoria for the first time in nearly five years.
That’s likely because so many areas of Queensland show promise – aside from the Gold Coast and Brisbane, Propertyology also highlights Cairns, which has several major projects in the works, including port expansion, a new university, many luxury hotels and a convention centre.
“Growth in the construction sector, education, tourism and agriculture will now start to drive housing demand in a market where supply is extremely tight,” predicts Simon Pressley, managing director of Propertyology.
Job growth is also being observed in Townsville, which recorded a 13.7% increase in employment opportunities, as well as in Mackay and Beaudesert.
SUBURB TO WATCH
CLEAR ISLAND WATERS: Gold Coast suburb flies high
Houses are in strong demand in the suburb of Clear Island Waters, where the median price is inching close to $1.2m.
The suburb has been on the rise since 2013, and it is currently at its peak for the period between 2010 and 2018. House values rose by 9% in the 12 months leading up to February 2018, and that positive growth shows no signs of stopping any time soon, especially as the Gold Coast is in a boom period.
On the flip side, the unit market has largely remained flat – the median price remains under $420,000. The average rental yield is quite high at 5.7%, though, which could attract investors seeking cash flow.
Yield: Clear Island Waters’ units offer an average rental return of nearly 6%.
Growth: The suburb’s house market is currently at its highest point of the past eight years.
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