Connect with us


New Gold Coast high-rise boom fuels fears of another crash



New Gold Coast high-rise boom fuels fears of another crash

In the lead-up to the Commonwealth Games, high-rise apartment development on the Gold Coast is ramping up again, fuelling concerns about another crash in values, as happened between 2010 and 2012.

Apartment values fell about 25 percent during the two-year period – a combination of oversupply, overpricing and a drop in tourism – with high-rise projects like Soul ending up in the hands of receivers.

This time around, The Australian Financial Review counted more than 1400 apartments across a dozen projects about to flood the glitzy strips of Surfers Paradise, Southport and Broadbeach over coming months, with a potential end value of about $1.5 billion.

Major projects include developer Citi marks $200 million Markwell Residences, a 46-storey tower with 210 units on Surfers Paradise Boulevard, the $220 million Signature Broadbeach, a 264-unit project by Little Projects, the $250 million Chevron One development on Chevron Island with 247 units and Sunland’s $200 million Hedges Avenue high-rise.

Record lows

With rental vacancy rates at record lows – just 0.9 percent, according to SQM Research – rents rising and values starting to rise as well, developers have sensed the opportunity to make money again on the Gold Coast.

Local municipalities have supported their endeavours, approving more than 11,000 new apartments in the past three years, compared with fewer than 5000 in the previous three years.

But investment adviser Terry Ryder believes history is about to repeat itself in a market notorious for its booms and busts, labelling the Gold Coast high-rise apartment market a “no-go zone” for investors in 2018.

“Once Gold Coast construction projects for the Games are completed, demand will undergo a readjustment, as construction workers leave the area,” said Mr Ryder, founder of

Capital restrictions

“Couple this with new restrictions on the capital flow out of China and the 3 percent stamp duty surcharge which now applies to foreign investors in Queensland, and demand is likely to fall short of developer expectations.”

Not everyone agrees with Mr Ryder’s assessment of the Gold Coast’s prospects, with property valuer and analyst Anna Porter listing the location as one of her six investment hotspots in 2018 due to the infrastructure projects underway.

SQM Research managing director Louis Christopher is also bullish on the Gold Coast market, writing in his November 2017 Boom and Bust Report that it has a more diversified economy than the Sunshine Coast and was benefiting from the lead-up to the Commonwealth Games, efforts to reduce crime and “just a tad better” road infrastructure. He expects the Gold Coast and the Sunshine Coast to outperform the Brisbane market in 2018.

Buyers have also bought into the Gold Coast rebound story, with a CoreLogic suburb report for Surfers Paradise showing that apartment sales have risen 60 percent in the past three years, averaging around 1600 a year.

Prices steady

However, the median price for a Gold Coast apartment was $422,000 in September, according to CoreLogic, almost unchanged from five-years ago when the Prodap Report put the median unit price at $419,000.

Ray White Surfers Paradise CEO Andrew Bell said he did not see any sign of the roadblocks that had derailed the Gold Coast’s property market so spectacularly in the past, with strong sales figures recorded recently.

“We’re not seeing rampantly rising interest rates, high unemployment or recession,” he said.

“None of these things is happening and all indications are that interest rates are likely to remain stable for most of 2018.

“There is tremendous confidence in the city due to its economic stability, the quantity and quality of local jobs on offer and steady population growth.”

Originally Published:

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


Sydney Baby Boomers drive real estate boom in Brisbane



Sydney Baby Boomers drive real estate boom in Brisbane

Brisbane’s bayside suburb of Wynnum is an attractive option for southern buyers.Source:Supplied

A MIGRATION of cashed-up Baby Boomers from Sydney will lead to a real estate boom in Brisbane, according to property investment experts.

A Property Investment Professionals of Australia (PIPA) members’ survey revealed that Brisbane was regarded as the best capital city for property investment.

Of the members who participated in the survey, 46.15 per cent rated Brisbane as the best capital for investment prospects in 2018.

PIPA chairman Peter Koulizos said the Queensland capital was expected to boom as a side effect of the Sydney property boom happening when Baby Boomers were looking at retiring.

“People that have a lot of equity in their home can retire or semi-retire by selling up and buying a home in southeast Queensland,” Mr Koulizos said.

And with the median house price in Sydney more than $1 million, he said this would give them a sizeable pile of cash left over after buying a home further north.

“That is because there is such a big price difference between Brisbane and Sydney,” he said.

A PIPA survey from last year also rated Brisbane as the best capital city in which to invest, but in the past 12 months the average house price has increased by just 2.9 per cent.

Mr Koulizos said a boom would come eventually, but picking the exact point was tricky.

“Property booms take a long time to gather momentum, I doubt you will see double digit growth in Brisbane this year but it may be different next year,” he said.

Melbourne was the next best investment option according to the survey, with 19.23 per cent believing it was a good place to invest, followed by Perth at 15.38 per cent.

Originally published:

Continue Reading


Property price growth on Gold and Sunshine coasts outperforming Brisbane, REIQ report finds



Property price growth on Gold and Sunshine coasts outperforming Brisbane, REIQ report finds
PHOTO: Highgate Hill, Milton, Kelvin Grove and West End suffered the biggest sales price declines in the inner-city ring. (ABC News: Isobel Roe)

Several of Brisbane’s more expensive suburbs are among the biggest losers in the property stakes, a Real Estate Institute of Queensland (REIQ) report rating performance in 2017 has found.

The Queensland market monitor showed Highgate Hill, Milton, Kelvin Grove and West End suffered the biggest sales price declines in the inner-city ring, followed by Wilston, New Farm and Taringa.

Highgate Hill in Brisbane’s inner-south suffered a median price plunge of 17.9 per cent year-on-year to $937,500.

Milton’s median price fell 11.4 per cent to $855,000, compared to 2016.

In Kelvin Grove, the median sale price was down 7.9 per cent to $764,750 and West End dropped 6.3 per cent to $1,030,500.

But some Brisbane suburbs enjoyed strong growth.

Teneriffe in the city’s inner-north became Brisbane’s first $2 million suburb in 2017 with a median sale price of $2.4 million — up 30 per cent on 2016.

At the same time, Kangaroo Point and Kalinga joined the $1 million club, with median sale prices soaring 28.4 per cent and 22.5 per cent respectively.

REIQ media manager Felicity Moore said inconsistences in price growth throughout the city could be attributed to “supply issues”.

“When you see a price soften significantly, it could be that there’s an additional level of stock developed, such as house and land packages that meets the level of demand,” Ms Moore said.

Gold Coast skyline
PHOTO: The Gold Coast recorded an overall increase in median sale price of 7.7 per cent. (Supplied: Tourism and Events Queensland)

Beach lifestyle proving attractive

Both the Gold Coast and the Sunshine Coast outperformed Brisbane in terms of house price growth.

The REIQ report showed the Gold Coast recorded an overall increase in median sale price of 7.7 per cent and the Sunshine Coast achieved 5.9 per cent, while Brisbane only managed an average of 2.6 per cent.

Ms Moore said the rediscovery of the beach “lifestyle markets” was somewhat overdue.

“When you look at what those markets have to offer, the Gold Coast and Sunshine Coast are just world class coastal beachfront living at its best,” she said.

“They’re not densely populated, they’ve both got world class beaches, great shopping and good schools and the amenities that go into those communities are of a very high standard.”

She said 2017 results positioned the Gold Coast as the strongest market in Queensland and among the top 10 nationally.

“It’s a similar story with the Sunshine Coast, although for years the level of supply going into that market has been a bit constrained,” she said.

“It’s struggled from a long-time lack of construction of new dwellings and when there’s demand building up it puts pressure on prices.”

Mining downturn impact

The report indicated the mining downturn continued to impact parts of central Queensland.

In Blackwater, the median sale price nosedived 70 per cent to just $36,000 last year, down from $120,000 in 2016.

Five years ago, the average sale price was $450,000.

“It’s a very sad situation but there is good news on the horizon,” Ms Moore said.

“The global body that monitors coal demand is forecasting that from 2022 there’s going to be a global uptick in demand, so in anticipation of that we’re seeing some coal miners pull some smaller mines out of mothballs.

“There’s a level of confidence coming back into the coal sector.”

Originally Published:

Continue Reading


The property clock strikes big for hot spot areas



The property clock strikes big for hot spot areas

9 Lion St, Ipswich. Picture:

DESPITE last month’s previous lacklustre values, analyst Michael Matusik has identified the areas on the upswing.

While property values remained fairly stagnant during February, property analyst Michael Matusik has revealed where the housing market is on the upswing.

Mr Matusik’s latest property clock for houses, has Brisbane, Gold Coast, Logan, Redlands, Sunshine Coast and Gympie all in upswing.

He said a market’s position on the property clock was based on the strength and direction of key indicators including sales numbers, price and rent, demand and how much new supply there was.

His latest Matusik Missive also listed Ipswich, the Fraser Coast and Noosa markets as heading into upswing territory.

Ipswich has many beautiful homes, often at prices well below what something similar would cost in Brisbane’s suburbs. A four-bedroom home at 9 Lion St,Ipswich is listed for $879,000.

The land the home sits on was bought in 1904 from the family of the then Ipswich Mayor Mr Pettigrew. A home was built on it in 1907.

The period home has 3.5m high ceilings, VJ walls, period window, and timber floorboards which have all been restored.

REAL ESTATE: 9 Lion St, Ipswich. Picture:

REAL ESTATE: 9 Lion St, Ipswich. Picture:

The home has two new bathrooms, a large separate dining area and study. It is listed through Steve Athanates of NGU Real Estate Ipswich.

On the Gold Coast at Robina, 196 Easthill Drive is listed for more than $850,000.

The three-bedroom home is within the Glades Golf Community.

It has formal and informal living and dining areas, and an outdoor entertainment area with a swimming pool nearby.

196 Easthill Drive, Robina. Picture:

196 Easthill Drive, Robina. Picture:

It is listed through Ian and Linda Mills of McGrath – Palm Beach.

On the Sunshine Coast at Noosaville a home at 15 Bluebell Court is listed for offers of more than $740,000.

The three-bedroom home is in a cul-de-sac in a residential pocket bordered by the Lake Doonella Reserve.

The single-level home has open plan living and dining areas. An outdoor area overlooks the pool and reserve at the rear of the property.

15 Bluebell Court, Noosaville. Picture:

15 Bluebell Court, Noosaville. Picture:

The property has a double lockup garage, plus on-site side parking for a boat or caravan, on the 975sq m block.

It is listed through Tansy Grant and Justin Sykes of Ray White – Noosa.

Originally published:

Continue Reading

Make Your Super Work

smsf property investment smsf borrowing

Positive Cashflow Property

duplex designs, dual occupancy homes

Property Investment Advice

investment property calculator successin property