The Gold Coast property market is in for a good year, according to industry experts.
THE start of a new year heralds fresh beginnings.
While the Gold Coast property market emerged relatively unscathed from the chaos of 2019, a clean slate is a welcome relief.
Property experts have dusted off their crystal balls to tell us what they think the next year has in store.
Andrew Bell, Ray White Surfers Paradise Group chief executive
Ray White Surfers Paradise Group’s Andrew Bell.
Real estate is performing well in a world and economy that is otherwise producing more concerns than optimism. It is clearly the preferred option for people over leaving their money in the bank or investing in a volatile stock market. With population growth well exceeding the supply of new property and with record-low interest rates, real estate is likely to continue to be the preferred asset class for most Australians. With increasing numbers of retiring Baby Boomers, the Gold Coast is likely to see a steady flow of migrators from southern states, giving us a healthy supply of well financed buyers. Housing affordability and tighter lending regulations will keep a lid on rampant price growth so 2020 should be a good, healthy, steady market for the Gold Coast.
Michael Kollosche, Kollosche director
Kollosche director Michael Kollosche.
I think 2020 will be a continuation of what we’ve seen in the past six months with stock levels drying up in the prestige market. The lack of supply is putting pressure on pricing. As interest rates remain low, fewer people are wanting or needing to sell and that seems to be the catalyst for the market conditions we’ve seen. It’s been strong and I think it will continue to have slow and steady growth.
Tolemy Stevens, Harcourts Coastal agent
Harcourts Coastal agent Tolemy Stevens.
The prospects for the Gold Coast market over the next 12 months are incredibly exciting.
With interest rates at all-time lows and many experts believing they will remain so, we are currently experiencing an ideal buying scenario for those wishing to invest in the region.
Sales volume is up, the effects of the banking royal commission are well behind us and southern interest in our market is the best I’ve ever seen.
Ali Mian, Ray White Runaway Bay Group principal
Ray White, Runaway Bay Group principal Ali Mian.
The Gold Coast real estate market for most of 2020 will continue on growth trend. The city is heading towards a bumper year as its population is growing at a reasonable rate and billions of dollars have gone into infrastructure spend over the last seven years. The city is reaping the rewards from it now. Developers’ confidence in the city’s real estate market for new dwellings has a positive outlook, which will encourage developers to construct more new dwellings that will provide more jobs. Historic-low interest rates are also offering great opportunities for first-home buyers and investors to invest in the real estate market.
Luke Henderson, John Henderson Professionals director and auctioneer
John Henderson Professionals director and auctioneer Luke Henderson.
Houses on absolute beachfront will continue to see price rises, this will allow the less expensive properties to also move forward in price to fill that gap. Money should remain cheap to borrow and more readily available from the banks, which will see buyers upgrading to better quality positions, either on nicer water or closer to the beach. The entry-level market will remain strong as more parents push their children to buy property and job growth continues to increase due to many infrastructure projects and the benefits and opportunities that flow in from that.
Amir Mian, Amir Prestige Property Agents principal
Amir Prestige Property Agents principal Amir Mian.
I see more stability in the market place, especially investment stock as the returns in the bank are very low, which will push investors to secure more steady income through a strong rental market and also potential capital gains. The medium price bracket will flourish as low interest rates will push affordability higher and also cashed-up interstate buyers will keep eyeing the Gold Coast market, which they still see as great value and a better lifestyle. The high price bracket will perform at a more steady rate as well as demand is still there, whereas there are less properties on the market compared to the last two years. Hope Island, Sovereign Islands, Isle of Capri, Paradise Waters, Mermaid Beach, Mermaid Waters and the Hinterland are always on high-end buyers’ search lists.
John Newlands, Professionals Newlands Surfers Paradise director and principal
Professionals Newlands Surfers Paradise director and principal John Newlands.
Confidence has returned to our market since the federal election in June with the fear of negative gearing being abolished removed. Affordability combined with record-low interest rates make it an ideal time to invest into property. We are starting to see a strong surge from buyers relocating to the Gold Coast from Sydney and Melbourne whereby they can sell up at a higher price and purchase possibly a better property and have money left over. With advances in technology and more low-cost flights, people are able to live here and work interstate. Next year is shaping up to be a good year for both buyers and sellers.
Katrina Walsh, Harcourts Coastal agent
Harcourts Coastal agent Katrina Walsh.
I firmly believe 2020 is poised for a stella year of growth in the Gold Coast market. If the strong buyer demand we have seen at the end of 2019 is any indication, then we are certainly in for further robust market conditions. With the continuing alignment of key market fundamentals, which includes low interest rates, infrastructure growth and unprecedented interstate migration, the Gold Coast is still one of the best value markets in the country. Very exciting times ahead.
Andrew Henderson, REIQ Gold Coast zone chairman
REIQ Gold Coast zone chairman Andrew Henderson.
The year is already shaping up to be a great one for Gold Coast property owners and
buyers. Our local economy continues to benefit from strong migration to the city, a buoyant tourism industry and other factors such as low interest rates and low unemployment will fuel property demand in the coming year. Freestanding houses in established Gold Coast suburbs will continue to record strong price growth. Similarly, units in small boutique buildings located near the beach will also enjoy price growth. With the light rail extension to Burleigh Heads getting the green light and talks already underway to extend it to the airport, the demand for real estate will remain strong along the beachside strip between Broadbeach and Tugun. And of course, those special properties along the beachfront, on the river or on larger lots will continue to be sought after by buyers.
Mitch Palmer, Ray White Broadbeach principal and auctioneer
Ray White Broadbeach principal and auctioneer Mitch Palmer.
I expect the Gold Coast property market will perform very well throughout the first half of 2020. Low stock levels will continue to create strong demand complimented by interest rates still at record lows, strong interstate migration and access to credit somewhat easier. The second half of the year will be more uncertain with debt now growing faster than income. Our market bottomed out in the third quarter of last year but at a much higher level than 2011. APRA’s influence on access to housing credit could take a little of the wind out of the sails for the second half of 2020. Any interest rate cuts will only be useful to those that can get access to a loan. A year from now, I anticipate the median sale price for the Gold Coast to be up but with most of the heavy lifting taking place in the first half of the year.
Josh Willatt, McGrath Palm Beach co-director
McGrath Palm Beach co-director Josh Willatt.
With buyer confidence at an all-time high, low interest rates and low availability of stock, it’s the perfect recipe to see fantastic growth in the Gold Coast real estate market for 2020. Particularly in the southern end of the Gold Coast where we are seeing a huge influx of southerners mixed in with enormous amounts of infrastructure spending coming from both state and federal governments with the light rail extension and the M1 widening approval from Varsity Lakes through to Tugun bypass. With all this positive news, how can we not say we are in for an amazing 2020.
Lucy Cole, Lucy Cole Prestige managing director
Lucy Cole Prestige managing director Lucy Cole.
There have been incredible happenings with the federal election earlier in the year and its unexpected result. This in turn gave confidence back to the market. Interest rates have been at an all-time low and will continue to stay low. The upheaval in Hong Kong has our expats seeking opportunities to return to Australia. There is definitely a resurgence in the market place for units, be it from investors or for people downsizing. Real estate agencies are experiencing a shortage of quality properties to sell from waterfront, villas, units, acreage and penthouses. Next year is going to see great growth for the Gold Coast.