Gold Coast Resurgence Lifts Qld Regions

Posted on 14/06/2016  
Gold Coast Resurgence Lifts Qld Regions

The surging Gold Coast housing market heads the list of rising hotspots featured in the new edition of Top 5 Queensland Regional Hotspots.

Hotspotting now rates the Gold Coast market as the No.1 growth market in Australia. It has more suburbs with rising sales momentum than any other area in the nation.

This is starting to translate into price growth. Housing markets to record double-digit growth in median prices in the past 12 months include:-

Benowa up 11%, Burleigh Waters up 13%, Highland Park up 11%, Palm Beach up 14%, Runaway Bay up 14% and Mermaid Beach up 22%.

The Gold Coast resurgence has been driven, in part, by big spending on infrastructure, including the light rail project, a major hospital development and expansion of several major shopping centres. Work on these projects and new high-rise developments have generated rising levels of jobs and, as a result, demand for housing accommodation.

The other big factor pushing markets on the Gold Coast is the strongly rising tourism industry, particularly from overseas. There has been massive growth in tourist numbers from Asia, including Taiwan (up 77%), Hong Kong (up 40%) and Japan (up 15%). Visitors from the US have risen 19%.

The international education market has grown 22% and comprises 21% of total international visitor-nights on the Gold Coast.

Demographer Bernard Salt has predicted that will rise further in the next 12 months. He says the expansion of facilities through infrastructure spending has helped lift the influx of overseas tourists. The low Australian dollar hasn’t hurt, either.

While the Gold Coast generally is a notable growth market likely to deliver good price growth, we emphasise that we expect the gains to occur in the housing markets, not the beachside high-rise apartment markets.

The Gold Coast has a bad history of generating oversupply in its highrise unit market and is heading towards another glut, given the high level of new developments, many of them mega projects – with the apartments targeted primarily on overseas investors.

This viewpoint is supported by long-term price growth data. The top 10 Gold Coast markets for long-term price growth – all averaging between 7% and 8% per year over the past 10 years – are all housing markets. They include Mermaid Beach, Miami, Burleigh Waters, Hope Island and Mermaid Waters.

The high-rise unit markets, on the other hand, include several (such as Surfers Paradise) with median prices lower than they were 10 years ago – and others where growth has averaged less than 1% per year.

 

 

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