Suburbs within a four-kilometre radius of a new hospital on the Gold Coast are set for growth, according to VFM buyers’ agent and property valuer, Tony Coughran.
Southport, Parkwood, Labrador and Molendinar have been pointed out as hotspots by Mr Coughran that will benefit from the $1.8 billion investment in the Gold Coast University Hospital by the Queensland government. Due to open in September this year, the project is expected to drive residents to the area.
“The Gold Coast hospital is the largest construction site in the southern hemisphere funded by the government,” Mr Coughran said.
“There will be capital gains and extraordinary rental growth due to the lack of supply and excessive demand in the coming months.”
RP Data’s latest statistics put the median house price in Southport at $392,500 and units at $300,000, with rental yields sitting at five and six per cent respectively.
Commenting on investment strategies in the area, Mr Coughran suggested that investors should hold onto their property for three to five years to “exploit maximum capital growth”.
He highlighted examples of properties in two different suburbs that are achieving substantial rental returns.
A three-bedroom and two-bathroom brick and tile house in Southport purchased at $360,000 is currently achieving $420 rent per week, and a two-storey rendered brick and tile four-bedroom and three-bathroom dwelling in Molendinar, bought through auction for $415,500, is achieving a rental return of $525 per week, he said.
Another major infrastructure project, the Gold Coast light rail, which will connect Griffith University to Broadbeach, is also expected to drive growth in the area.