Although the sting from the GFC lingers, there is sunshine on the horizon.
A recent RPdata report showed that the affordable housing market has experienced growth in median sale prices over the past year.
RPdata senior research analyst Cameron Kusher comments:
“It is a similar story across the unit market with suburbs at the southern and northern end of the region and those away from the waterfront the most likely to see some improvement in median selling prices over the year.”
In terms of strata, units are the obvious component of interest for SSKB. The current oversupply of units, the slower interstate movement, the slump in tourism, and the high $AUD have been obvious hindrances to median sale prices.
However, the news is not all bad as in the past 12 months to April 2011 unit values have increased by 0.1%, while house values have fallen by -0.2%. Although this is a positive fluctuation, it’ll be a while still for the Gold Coast’s economy to recover as we wait for influential overseas markets to correct themselves.
Therefore, a key factor from the comments of Cameron Kusher is affordability. With the market in the buyer’s favour, offering true value is the best approach to absorb oversupply and to drive median sale prices back up.
“The areas that are doing well tend to be more affordable. If you can get homes on the market at the right price then you are probably going to have buyers. On the glitter strip the high prices detract buyers. People aren’t taking on high levels of debt.”
Our experienced Developer Consulting Team at SSKB understand the headache the GFC has caused for many. Contact our team on 5504 2015 or firstname.lastname@example.org for a review on how we can help you through.