GOLD COAST TO COME OUT ON TOP
The best performing property market in 2017 will be the Gold Coast, with Mr Birch predicting 10 to 20 per cent growth in the sunshine city.
“I am seeing the same thing which was happening in Sydney in 2012 happening in the Gold Coast and the fringe suburbs of Brisbane right now. The buyer activity there is very strong.”
He said the Gold Coast is set to play a huge amount of catch-up after the market dropped off post GFC.
“Between 2009 to 2013 the market went backwards and the reason was because many developers went broke during the GFC. From 2013 to 2015 the market found its feet, like Sydney back in 2009 to 2012, and from last year to this year I have seen very good growth,” Mr Birch told news.com.au.
According to CoreLogic’s latest regional market update, Gold Coast home values continue to trend upwards, having increased on an annual basis consistently since mid-2013.
The median value for a Gold Coast house, as at the end of September, was $579,753, up 6.6 per cent from last year while unit values have risen 4.7 per cent, to $379,634.
Real estate mogul John Mcgrath has tipped the Gold Coast suburb of Mermaid Waters to be the top growth suburb nationally in 2017, according to The Australian, as renovations lift values in the area close to exclusive Mermaid Beach.
He said southeast Queensland, which has lagged the southern markets, would move to double-digit price growth next year, with its price gap between Sydney at its widest point.
“You can buy a unit on the Gold Coast, a walk from the beach, for $250,000. The same unit in Sydney will cost $750,000,” The Australian reported Mr McGrath saying.
NAB’s latest Residential Property Survey (Q3 2016) also tipped the Gold Coast as a standout performer, naming it as one of the suburbs likely to achieve above average growth in the next 12 months.
The city, which is set to host the Commonwealth Games in 2018, has had a surge in property prices on the back of a boost in tourism and new infrastructure — a trend which will likely continue in 2017, the The Gold Coast Bulletin reported.
“We’re going to have a low-interest rate environment and there will be opportunities leading into the Commonwealth Games,” Real Estate Institute of Queensland (REIQ) Gold Coast zone chairman, John Newlands told The Gold Coast Bulletin in November.
“We will see similar migration to this year next year, coming through from interstate buyers.”