Buyer interest in $1m properties soars
The low cost of debt and high household savings are enabling Australians to buy more expensive properties, new research ...
The Gold Coast market has lately seen a pick-up in homebuying activity, perhaps largely due to a $1.2 trillion transformation, according to PRDnationwide.
In preparation for the 2018 Commonwealth Games, the Gold Coast City Council and Queensland government have been funding a number of initiatives that are developing the areas and, in particular Southport, where $2.6 billion is committed for projects.
This attraction has boosted both the house and unit market within the suburb, said PRDnationwide research analyst Matt Ballam.
"Investors are starting to view units in the Southport area as attractive buying propositions again," said Mr Ballam.
"There's been a five per cent improvement in unit median price in the past six months and buyers are starting to engage in a price war to get a piece of the limited stock on the market. All this bodes well for investors in the area."
Key projects of buyer interest have been transport, medical, educational and recreational precincts, as well as construction of a light rail. This transport will link Southport to Broadbeach.
"A total of 83 house sales transactions were recorded in the six months up to March this year," Mr Ballam said.
"Even though that number is well below the 10-year average, it was a significant 32 per cent increase in volume from the previous six months ending in September 2012. It shows that although residents and investors are still cautious, there is growing optimism towards the strength of the housing market in the area."
PRDnationwide’s Southport principal, Gerald Adam, said that Southport is the “real CBD” of the Gold Coast and that it will rival town centres across Australia for its long-term investment returns.
"With the $2 billion University Hospital at Parklands ready to open, China Town officially launched and the Southport Olympic pool being renovated now for the Pan Pac Games in 2014 and the Commonwealth Games beyond, the future is very bright for Southport," said Mr Adam.