Queensland’s Gold Coast is set to be one of the property market’s best performers during 2015 to 2017, before facing “significant oversupply” again in a few years, according to a market forecast.
Simon Pressley, managing director of Propertyology, said the Gold Coast market is set “to surprise many pundits and become one of Australia’s best performers” over the next few years.
“Consumer and business sentiment have improved over recent years. The new Gold Coast hospital, plus a $1.8 billion passenger rail project, has been good for jobs growth. Work has commenced on a $670 million expansion of Pacific Fair that will make it the largest shopping centre in Queensland. The $500 million athlete’s village for the 2018 Commonwealth Games and a $1 billion luxury hotel by Chinese developer Ridong are other major projects,” he said.
Mr Pressley said tourism continues to improve in the region, boosting its property market prospects.
“Tourism drives the Gold Coast’s economy. So when the GFC hit in late 2008, consumer sentiment disappeared, jobs were shed and its property market suffered.
“The Gold Coast’s only other industry of note is construction, and a significant pre-GFC oversupply compounded things for its property market.
“In spite of having population growth (3.1 per cent per annum during 2003 to 2013) of almost double that of the national average (1.7 per cent), the Gold Coast was the worst-performing market in Australia for a few years,” he said.
“The tourism boom has arrived – meaning things will only get better for the Coast. A decision on a proposed $7 billion mega resort is due in early 2015. An economic impact statement released by the proponent in September 2014 suggested that, if completed, tourism revenue could increase from $1.15 billion per annum to $8.9 billion – 15,000 jobs could be created.”
Mr Pressley predicted that by year’s end, data will show that the Gold Coast has outperformed other markets across the country – but he did temper his prediction with warnings about potential oversupply.
“Don’t be fooled – leopards don’t change their spots. Gold Coast Mayor Tom Tait is a developer by trade, and he is very pro-construction,” Mr Pressley said. “There have been a number of large building applications lodged during the last 12 months. Significant oversupply is expected again in a few years’ time. Areas with a high concentration of new supply will include Southport, Coomera and Labrador.”