Repost; Hannah Sbeghen – realestate.com.au
A REMARKABLE three for the price of one deal has Sydney buyers piling into the Gold Coast real estate market.
Southern agents are advising investors their money is better spent on the Coast, where the average price for a unit in Surfers Paradise is $370,000 compared $1.041 million at Bondi — almost three times the price.
Prominent Sydney agent John McGrath, of McGrath Real Estate, who is on the Gold Cost to host the 20th annual Australasian Real Estate Conference, is among those advising clients to look north.
“I am still sending them north, I think this is still the place to be,’’ Mr McGrath said.
“I think the value for money is compelling — you can still buy properties here in some instances for a third or a quarter of the equivalent in Sydney.
“In Sydney now we are selling for $800,000 or $900,000 one-bedroom units and I look at that and I think well, you can buy one for a third of the price of that on the Gold Coast in an equally beautiful location, or you could buy a house on a canal for a similar money.’’
A glimpse at properties on the market at realestate.com.au proves Mr McGrath’s point.
In the middle of Sydney a luxury apartment at 18/155 Macquarie St comes with an eye-watering price tag of $4.7 million to $4.8 million. The 214 sqm apartment comes with three bedrooms adorned with crystal louvres.
Further north, a two-bedroom, one-bathroom unit at 7/134-138 Ocean St, Narrabeen is on offer for $1.1 million to $1.2 million.
Head down to Bondi and a dozen blocks from the beach is a stylish unit at 15/64 Penkivil St with “ocean glimpses” will set you back $1.475 million.
But on the Gold Coast buyers can nab a beachfront unit for a mere $525,000.
For the same price as a small unit in Sydney, buyers can live in luxury on the Coast in a stunning unit at 1153/1 Lennie Ave, Main Beach on the market for $1.225 million.
McGrath Surfers Paradise agent Craig Caughlan said the price differential was encouraging large numbers of Sydney and Melbourne investors to buy on the Coast, with four out of ten sales on the Gold Coast from interstate buyers.
“About 80 per cent of interstate investors are buying units while homes are usually more popular for interstate buyers coming to settle down here,” Mr Caughlan said.
“Sydney is getting to a point where buyers are having to go further and further out to the western suburbs.
“Prices range from $1.5 million to $10 million anywhere close to the city but on the Gold Coast their cheapest is our most expensive and they find better value for their money here.”
Mr Caughlan said while Broadbeach and Surfers Paradise were the main targets for interstate investors, Hollywell, Labrador and Main Beach were becoming hot spots.
“The vacancy rates are about two per cent, tenants want to rent closer to the water and transport so these units are always popular,” he said.
“The biggest driver for interstate buyers is the return they make.”
Harcourts Coastal agent Tolemy Stevens said, in the past 12 months, almost 80 per cent of luxury property sales along the beachfront have been sold to Sydney or Melbourne buyers.
“These buyers tend to be very astute and already own a substantial home or multiple investments within their own state and now believe it’s time to look outside of their booming markets for better value and the next best option is the Gold Coast,” Mr Stevens said.
“With the Commonwealth Games on the horizon and plenty of cranes in the sky, these buyers are aware that the Coast market is really hot.
“They have a focus on absolute beachfront locations from Main Beach to Coolangatta as a safe bet over the next three to five years.”
Mr Stevens said the appetite for luxury beachfront properties is currently at an highest and that demand is currently outweighing the supply.