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The Gold Coast real estate market is looking very attractive to investors, with the latest data showing a 53.3% increase in dwelling values from the recent growth phase. This is one of Gold Coast’s most significant growth phases in the local real estate market’s history.
Part of this massive growth spurt was fueled by a sharp increase in interstate migrants fleeing the heavy COVID-19 restrictions imposed in Victoria and New South Wales. The new arrivals drove up the demand for homes leading to a surge in property prices.
Before the market starts leveling off, you should take your investments to Queensland’s southeast.
Read on and learn how the property investment landscape has evolved in Gold Coast, the kind of properties you should be looking for, the best suburbs to invest in, and why you need a buyer’s agent such as Amassed to guide you as you invest in the vibrant real estate market.
In 2021, the Gold Coast property market experienced one of its strongest demands despite strict restrictions on local and international tourism and other COVID-19 lockdown policies across Australia.
The surge in the real estate market was sparked by the better affordability of detached houses, which attracted migrants from Sydney and Melbourne who were paying higher sale prices for such homes.
A lifestyle attraction also contributed to the 2021 spurt since Queensland steered clear of large-scale Covid restrictions and outbreaks.
According to reports, the strong demand for housing in Gold Coast in 2021 surpassed Brisbane’s already booming market, marking a historic milestone for the local property market. The pace of house price growth is also expected to supersede that in Darwin, Adelaide, and Perth between 2021 and 2024.
In September 2021, the median house price in Gold Coast was $727,219, with house prices outperforming units with a growth of 28.6%. The median house price hit $886,747. Unit prices had still performed exemplary, recording an increase of 23.2% with a median unit price of $544,681.
Despite the hike in interest rates from the Reserve Bank of Australia, which is expected to affect the affordability of the real estate market, the growth of the Gold Coast property market has still been moderate for the first half of 2022.
As more white-collar workers resort to remote work, the demand for homes in coastal and regional areas is expected to become more consistent, favoring the Sunshine Coast and Gold Coast markets.
There are also massive developments in the area, such as the new “SkyRidge” township that should be completed by 2036, opening new opportunities in the market.
For high rental yields and capital growth, investors should look for investment properties between $500,000 to $600,000. This should be the median price for a new house, townhouse, or land package.
A Gold Coast investment property at this price range typically generates a strong rental demand. The rental yield of the market currently is very tight, with data showing strong demand for rental homes, albeit a vacancy rate of 0.81%.
Currently, properties commanding the highest prices are situated close to job centers or employment nodes in Queensland. These include Arundel, Nerang, Mudgeeraba, Carrara, Robina, Ashmore, Coomera, Varsity Lakes, Ormeau, and Pimpama.
Inland suburbs are also commanding reasonable prices for investment properties.
Land supply shortages also play a significant role in driving property prices and informing property investment decisions.
The southern and central parts of the Gold Coast are the most affected by land supply shortages. Therefore, all development and growth have been focused on the Northern suburbs of Pimpama, Coomera, and Ormeau.
These areas are also experiencing an undersupply of rental properties resulting in vacancies of under 2%. Property investors in the area have therefore hiked prices in response. These high rental yields are making rental properties in these areas a great attraction to property investors.
Typically, as a property investor in Gold Coast, you’ll want to go for affordable, mainstream rental property instead of lifestyle-oriented options with heavy emotional attachments.
The Gold Coast is a linear city geographically wrapped by the coast to the east and the mountains to the west. Typically, there are four major areas you can find property for sale.
This gold coast area is the center for holiday accommodation, tourism, and nightlife. It contains some of the most well-known Gold Coast beach suburbs, including Broadbeach, Surfers Paradise, and Mermaid Beach. The area also hosts the Coast’s CBD of Southport.
The north beachside boasts a mixture of properties, ranging from high-density units in Broadbeach and Suffers to medium-density and luxury houses in Miami and Mermaid Beach.
Southport sits as a priority development area boasting a high concentration of high-density units with a healthy choice of traditional housing and lower-density development within its surrounding.
There’s also a healthy supply of suburbs built along the canals running inland from the beach. These include Broadbeach Waters, Bundall, Clear Island Waters, and Mermaid Waters.
Generally, you should avoid high-rises synonymous with this area due to oversupply and poor owner-occupier demand.
The south beachside area runs from the famous Burleigh Heads to the QLD-NSW border at Coolangatta in the south. Within Burleigh and Coolangatta, there are patches of high-density development with duplexes and detached housing scattered throughout the area. Duplexes and detached housing are more prevalent in the beachside suburbs of Tugun and Palm Beach.
The south beachside coastal stretch also hosts many low-rise beachfront units.
Arguably, this area is one of the most attractive on Gold Coast with its hinterland views and northerly facing beaches. It also hosts the Gold Coast International Airport, a crucial infrastructure driving tourism in the city.
Generally, the best investment area is in the southern beaches, which have a lower property supply and more restrictive zoning than higher-density areas in the north.
This is Gold Coast’s largest suburban area. It also houses most of the traditional suburban housing you’ll find in the city. The north inland stretches from the north’s highly developing areas of Oxenford, Pimpama, and Coomera to established suburbs in Parkwood, Ashmore, Helensvale, and Arundel.
Property types in this area range from land packages, new houses, and townhouses in the newer suburbs to more diverse, less modern styles in the established areas.
Some of the notable infrastructure and amenities in the area include various Gold Coast theme parks and the new Gold Coast Hospital precinct alongside Griffith University.
This area has a lot of good property investment options.
The south features two majorly populated suburbs, including Varsity Lakes and Robina. These are relatively new creations developed around Bond University and the Robina Town Center.
The south inland features a mixture of duplexes, detached houses, and townhouses. Medium-density apartments also surround most of the area. Nearby are the hinterland suburbs of Tallai, Mudgeeraba, and Bonogin. Further south is the Currumbin and Tallebudgera Valleys.
Properties in hinterland generally have larger block sizes and homes. Most suburbs are easy to access through the M1, with the main areas of employment being the Varsity Lake business precincts and Robina CBD.
Gold Coast has very lucrative suburbs and locations to invest in property. However, a few stand out, located along the future route of the Gold Coast light rail. These are Burleigh/Broadbeach heads. Both regions experienced a 32.4% bump in property value in the year, running to August 2021.
Coolangatta is another good location, having marked a 32% bump in property prices within the same period.
Buying property in Gold Coast can get a bit confusing because of the variety of available options. That’s where a buyer’s agent comes in. Typically, a buyer’s agent will help you with the following:
Independently search for property – They’ll get your requirements, needs, and budget and use them to search for fitting property investments.
Research property – Based on your needs and budget, the buyer’s agent will research the options they have for the best value.
Negotiate prices and purchase property – A buyer’s agent will negotiate for the property on your behalf and purchase it if it ticks all boxes.
A great example of the process used by a buyer’s agent to secure an excellent property investment is the Amassed System used by Amassed. Amassed is an experienced buyer’s agency with a massive property portfolio of over 7 million dollars.
Using the Amassed System, the process of securing your property is broken down into seven steps comprising:
Overlooking your current assets, the Amassed team modifies your wealth creation and investment strategy where necessary to ensure you have the best structures to succeed in the current gold coast market.
The team addresses any questions or concerns you may have and forwards your wealth strategy to an internal team of professionals who get ready to purchase your property.
Effective and efficient wealth creation is the ultimate goal of any gold coast property investors. And if you channel your property investment in Gold Coast, many profitable opportunities will earn you a high yield and capital growth.
Instead of taking up the responsibility and pain of searching, researching, and negotiating for property, leave all this work to the hands of an experienced buyer’s agent. Contact Amassed today and start a profitable journey to creating wealth in the Gold Coast property market.