The Gold Coast’s strong economy is expected to hold up the property market.
JOBS and development will save the Gold Coast property market from following in the footsteps of the fast-falling Sydney and Melbourne markets, real estate experts say.
Their optimism comes as the latest REIQ Quarterly Market Monitor Report, released today, reveals our market is slowing but will likely remain stable next year.
John Henderson Professionals Mermaid Beach director Luke Henderson said the Gold Coast was a star performer compared to the weakening southern states.
John Henderson Professionals Mermaid Beach director Luke Henderson. Picture: Jerad Williams
“Unemployment is low, interest rates are low, the city is growing, tourism is strong, and the local economy is diversifying,” he said.
“The health of the local economy and the amount of developments in the city are among the key factors driving optimism in the market.”
According to the REIQ report, big projects including the $2-billion Star Gold Coast masterplan as well as the $500-million Pacific View community at Worongary would provide more jobs and housing, further strengthening the economy.
REIQ Gold Coast zone chairman Andrew Henderson said the Coast market did not rise as quickly or as much as Sydney and Melbourne, therefore would not have as sharp a decline.
He said the Coast’s strong economy and lifestyle were also drawing more people to the region.
REIQ Gold Coast zone chairman Andrew Henderson. Picture: Jerad Williams
“We’re still getting significant migration from interstate so potentially that will give us some extra buoyancy in our market,” he said.
“We’re also still a significantly cheaper place to live than capital cities.”
He said the changing job market meant more people could live on the Coast and work from home or fly to Sydney or Melbourne a few days a week.
“Lifestyle is going to be a bigger part of how people are going to live,” he said.
The REIQ report revealed houses were the property market’s biggest winner in the past year.
While the median house price dipped 0.6 per cent in the September quarter, the annual median reached a new high, jumping 3.8 per cent to $629,000.
REIQ chief executive Antonia Mercorella said the rise was equivalent to an extra $23,000. “Recent market trends data reveals that the annual volume of sales has fallen about 13 per cent, which has put upward pressure on median days on market and median vendor discount,” she said.
“Despite tougher conditions, the house market has delivered good results.”
Houses were the Gold Coast property market’s biggest winner in the past year.
The data reveals Paradise Point had the highest price growth in the September quarter, with the median up 62.2 per cent to $1.505 million.
Multimillion-dollar properties in the suburb’s elite Sovereign Islands held up the median as few in the area sold for less than $2 million.
While the housing market looked promising, data on the unit market was bleaker with the median unit price dropping 3 per cent in the September quarter and 1.6 per cent annually to $425,000.
Source: 8 December 2018 https://www.realestate.com.au/news/strong-economy-will-hold-up-gold-coast-property-market/