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Gold Coast tops Qld Property Market

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Oct 15

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Gold Coast tops Qld property market

repost: Alexandria Utting – Gold Coast Bulletin. Original article here.

CONFIDENCE has well and truly returned to the Gold Coast property market with new data showing it to be the most popular Queensland location for buyers.

Core Logic RP Data’s annual Regional Market Update, released today, found property sales on the Gold Coast increased by 5 per cent to 20,079 sales for the year ending May 2015 — the largest increase in the state. These figures were 27 per cent above five-year average for the region.

Real Estate Industry Queensland Gold Coast chairman John Newlands attributed the increased demand to renewed buyer confidence from interstate investors capitalising on the coastal area’s lower property prices.

“Interstate, market prices have peaked and the return on investment in other states is poor compared to the Gold Coast,” Mr Newlands said. “Because there is more building there are also more jobs and this generates more tenants for investors, so it’s really a double hitter.”

Of the properties sold during the past year, 43 per cent were houses and 57 per cent were units. First-time buyer Harley Dhessi, 28 and her partner Matt Amies, 33 purchased their new home at Florida Gardens in February. Ms Dhessi said the couple decided to buy after seeing increasing demand on the Coast in 2014.

“We were looking for four to five months and we noticed the good properties were going really fast, so when we saw one we liked, we put in an offer on it straight away,” Ms Dhessi said.

Data also indicated Gold Coast home values had increased by 4.3 per cent for houses and 4 per cent for units. Ms Dhessi said buying a home that would eventually produce a good return was a consideration for the couple.

“We bought the property in a sought-after location because we hoped the value would increase,” she said.

Despite the increase in the volume of sales, the average time taken to sell a Gold Coast property remained steady at 74 days for homes and 93 days for units.
Core Logic RP Data senior analyst Cameron Kusher said these figures were lower than in previous years.

“Although the average time to sell may not have change dramatically, it’s still trending lower,” Mr Kusher said.

“I remember a year or two ago you were looking at about 120 days on market and now it’s closer to about 74.”

The analyst also said Gold Coast prices would increase steadily across the next year.

“House prices will continue to rise at a solid level but we will not see the rapid increases that were more common a decade ago,” Mr Kusher said.
By comparison, dwelling sales within the Richmond-Tweed region increased by 5.1 per cent within the same period. However, these properties remained on the market for about 111 days.