What's Happening in the Gold Coast Property Market?
The Gold Coast in in the midst of the construction and housing boom. Some of this is a result of the Commonwealth games, but most of it is a result of long-overdue infrastructure spending to accommodate the strong population growth of the city. This is leading to price growth, high rents, and very low vacancy rates. It will also mean that there will be an oversupply of certain property types in the future. Investment conditions are good, and the Gold Coast has a promising future as a city, but you do need to be careful so that you don't buy a dud investment.
Lets look at some specifics:
- Quality detached houses and townhouses on the Gold Coast remain scarce, particularly in the central and southern parts of the Gold Coast. You can still buy good-quality townhouses for under $400,000 and houses for under $500,000 if you know where to look.
- Houses in beach-side suburbs have started to cool down a little after a very strong period of growth
- Unit construction has increased considerably off post-GFC lows. There is still a scarcity of good-quality affordable units, so the market is not in trouble by any means, but should construction continue in this vein then we will see an oversupply of medium-to-high rise apartments in the coming years
The long-term fundamentals of the Gold Coast market are good. The city has a strongly growing population, a more diversified economy and excellent connectivity with the rest of Australia and increasingly in Asia. This will underpin price and rental growth over the long-term. As always though, investors need to be careful. My advice is focus on properties in established areas that are in strong-demand by owner-occupiers. Stay away from high-rises, large complexes and major new development areas.