The Gold Coast property market remains buoyant with the highest number of growth suburbs.
According to the Price Predictor Index: Winter 2016 report, the Gold Coast took out the top spot for sales activity as interstate investors look for new opportunities and developers are taking advantage of interest in the city as a result of infrastructure investment.
Among the big infrastructure spends ahead of the 2018 Commonwealth Games are stage 2 of the light rail and the $300 million upgrade to the Gold Coast Airport at Coolangatta.
According to CoreLogic, some suburbs have experienced a near five-fold growth in sale price over the past 20 years.
|Rank||Suburb||2016 average sale price||1996 average sale price||Percentage jump in 20 years|
|1||Mermaid Beach||$1.211 million||$250,000||480 per cent|
|2||Coolangatta||$756,000||$162,250||465 per cent|
|3||Miami||$645,500||$140,000||461 per cent|
|4||Paradise Point||$900,000||$195,000||461 per cent|
|5||Palm Beach||$675,000||$148,000||456 per cent|
|6||Burleigh Waters||$687,500||$161,500||425 per cent|
|7||Currumbin||$780,000||$180,000||433 per cent|
|8||Burleigh Heads||$685,000||$161,500||424 per cent|
|9||Hope Island||$620,000||$145,000||427 per cent|
|10||Mermaid Waters||$760,000||$185,000||411 per cent|
And it’s not just the beachside suburbs experiencing growth.
The northern suburb of Pimpama was ranked seventh by a HIA national top 20 building and population hotspots list.
Pimpama also achieved top place on the Building Momentum Shortlist with $129,080 in approvals across 2014-2015, and an estimated $318,411 across the 2015/2016 financial year to date. The 2015/2016 estimated growth in Pimpama of Residential Building Approvals is 147 per cent. Nationally, a ‘hotspot’ is defined as a local area where population growth exceeds the national average and where the value of residential building work approved is in excess of $100 million.
Over on the western side of the M1, the suburb of Willow Vale has made RealEstate.com.au’s top ten suburbs experiencing high rental demand. The suburb sits at number five, with Benowa at four and Paradise Point rounding out the top 10.
New apartment sales in the city jumped by more than 80 percent in 2015 and, according to new research by consulting firm Urbis, similar growth is expected this year as well.
A total of 1,494 new apartments were sold last year compared with 825 in 2014, reveals the latest Gold Coast Apartment Essentials report.
Affordability, foreign investment and population growth contributed to quarter-on-quarter sales growth in 2015, said Urbis senior consultant Lynda Campbell.
“The Gold Coast apartment market has experienced its highest level of activity in almost eight years, after a lag in residential construction following the global financial crisis,” Campbell said.
Developers with new product coming onto the market in 2016, and people purchasing for investment, have timed it well. According to the REIQ March quarter 2016 Vacancy Rate Report, the rental market on the Gold Coast has vacancies of less than two percent which is considered very tight.
That vacancy rate is even smaller in Robina, at 1.1 percent, which has also seen apartment values grow by 7.9 per cent over the past three years.
How long with this growth cycle remains is unknown but researchers at Heron Todd White suggest the Gold Coast is approaching the peak of market for both houses and units.