Increases in suburb seen after soft two years
One suburb has started to see increases after a softened period for the last two years, new research has revealed.
The Gold Coast suburb of Robina has seen increases in its median price to $527,000, a 5.4 per cent increase, over the most recent recorded period, according to PRDnationwide.
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"These figures are an indication of what appears to be the start of the next phase of the real estate market cycle that we traditionally see on the Gold Coast,” said PRDnationwide’s principal, Mark Croudace of the June 2012 increases.
“What we know is that property values and the volume of sales generally begin to change, initially in areas closest to a Central Business District such as Robina and then radiate out to those areas that are farther away.
"If we see a continuing trend like this over the next three months, it is a positive sign that the cycle has definitely begun and we could look towards a growth in median priced properties of anything from two to four per cent if history repeats. Historically, we then see the market run in line with inflation for the next four to five years".
These increases do, however, come on the back of a soft period since June 2010, seeing drops of 2.2 per cent per annum, with sales dropping down to 91 during the six months to 30 June 2012, which is almost half of the five year sales average.
This may be due to reluctant sellers, unwilling to discount, said Mr Croudace.
