The Gold Coast has become a cosmopolitan city, offering diversity and a lifestyle that attracts new citizens and migration from interstate. With various infrastructure projects and high rental demand in strength, the Gold Coast could be a safe bet for investors, writes Jeremy Foster of Probity Investments.
Last year saw an increasing number of international development injections, such as Wanda Group’s Jewel Residences, Chow Tai Fook’s five-star hotel The Star Residences and Songcheng’s theme park.
The Gold Coast has also been hosting a range of Hollywood blockbuster movie stars and major international events. It is evident that the city has grown from an economic base of tourism and construction to a more diverse, knowledge-based economic environment.
Demographer Bernard Salt has previously said: “The Gold Coast will become a city of truly metropolitan scale” with the population estimated to double to 1.2 million by 2050. It is obvious that there is a huge demand for accommodation in the Gold Coast.
Channel 9 News reported that Southport is under huge rental demand now, prospective tenants are resorting to desperate tactics to secure homes, including paying up to 12 months’ rent in advance. There are over 200 rental enquiries on the first week of a newly released apartment in Southport.
According to SQM Research in October 2017, vacancy rates at the Southport is sitting as low as 1.4 per cent, which is one of the lowest in South-East Queensland. Furthermore, high-quality apartments located in Southport CBD are from only $370,000.
With high demand, affordable price and limited supply, we believe properties in the Southport will enjoy a great return on investments.
Property valuation company Herron Todd White has also said the Gold Coast house market is experiencing a shortage of vacant property relative to demand, rental vacancy is tightening, and volume of house sales remain steady.
CoreLogic data reveals Gold Coast house prices have gone up 21 per cent in the past three years, with median house prices achieving a record high of $600,000.
With limited supply of land and a projected increased demand in housing in the Gold Coast, this is the best time to get into the market and secure your investment before prices go up.
Looking ahead, 2018 will be a “game changer” for the Gold Coast. The 2018 Gold Coast Commonwealth Games is expected to boost the local economy by $270 million and has been predicted to generate an equivalent of $30,000 in jobs and attract worldwide attention.
In preparation for the games, the Gold Coast City has prioritised major infrastructure, such as upgrading sporting venues, building athlete resorts and completing stage two of the Gold Coast Light Rail.
This service will ease the commute for passengers from Brisbane to the Gold Coast, as well as make local transport throughout the coast more convenient. Future stages are planned to extend the light rail from Broadbeach to Gold Coast Airport.