repost: Michelle Hele – Herald Sun. Original article here.
THE Gold Coast will need another 133 apartment towers to help it cope with its forecast population boom in the next 20 years.New research has revealed its population will jump by about 76 per cent by 2036 and many of those people will need to be housed in high rise apartments. Report author Matt Gross of the National Property Research Co said the predicted population growth would mean demand for 156,000 new dwellings to cope with the influx.
He believed about 31,000 of those dwellings would be apartments.Mr Gross said now was the time for investors to consider buying into the Gold Coast market, particularly Surfers Paradise, to reap the benefits of future in capital gain. He said the market was starting to recover but it was still in its “infancy’’ so prices were at a more affordable level.
There has already been some growth in prices since the start of this year with a median capital gain in Surfers Paradise of about $12,250 so far. Mr Gross said the property cycle on the Gold Coast favoured long term investment, as every cycle had surpassed its previous peak.
“Surfers Paradise appears to be at a more favourable point in the cycle for those looking to buy with arguably greater upside potential than Sydney.
“Investors can purchase at the bottom of the cycle rather than buying into Sydney where median sales prices remain at historical peaks.”
“The Gold Coast’s workforce is predicted to increase at an average annual growth rate of 2.5 per cent,’’ he said. Mr Gross said the amount of new infrastructure being built on the Gold Coast and the good design made it a worthwhile market to buy in. He said the market could be about to enter a period of unprecedented growth in terms of the number or projects underway. It would involve many old tired sites being transformed into newer modern buildings.
“Realistically a lot of the good sites are old buildings because the good sites were the first ones developed,’’ he said. Mr Gross said the Gold Coast and south east Queensland had not really seen the price growth that other places like Sydney and Melbourne had.
“What you are actually seeing is pretty good (buying) opportunity,’’ he said.
Anecdotally Mr Gross said they heard of young couples moving to the Gold Coast now because it was too expensive to buy in Sydney and start a family. He said there also appeared to be a lift in the number of interstate retirees.