The Gold Coast property investment building sector is riding the biggest development boom in Queensland. A surge in high rise development has led to 6,702 residential dwellings gaining construction approval on the Coast in the past 12 months.
The figure rose by more than 2,300 from the previous year — a massive 52 per cent increase that eclipsed every city in Queensland. The latest data indicates that the Gold Coast’s construction sector is performing better than Brisbane and the Sunshine Coast which have had increases of 33 per cent and 32 per cent respectively.
REIQ Gold Coast Zone chair John Newlands said while the construction was welcomed he was concerned the sheer volume of additional dwellings could create oversupply after the 2018 Commonwealth Games.
“The majority of these approvals is in high-rises and while it is good news for developers we have to be careful we get the balance right otherwise there could be an oversupply,” he said.
The upcoming Commonwealth Games is set to boost Gold Coast property investment and overall property market conditions generally, according to real estate franchise PRDnationwide.
New infrastructure projects worth $950 million are expected to cope with the 2018 Commonwealth Games, including the Athlete’s Village in Southport and sporting centres in Carrara, Coomera and Broadbeach.
The recent price growth for houses in the local Gold Coast market, with 11.0% median price growth in Southport and 10.2% in Ashmore, along with the new infrastructure and stock on the market that will be introduced around the Commonwealth Games, has given PRDnationwide reason to expect strong growth in the region.
PRDnationwide national research manager Diaswati Mardiasmo says both the 2000 Sydney Games and the 2006 Melbourne Commonwealth Games provided boosts for local property markets.
COOMERA is set to get a supersized sports stadium as part of the final Gold Coast 2018 Commonwealth Games plan, which has also locked in women’s rugby 7s and women’s boxing for the event.
The Queensland State Government has released the first images of the northern Gold Coast venue, which will deliver a huge boost to the sport-starved area when it is completed in 2017.
The facility will have a 7500-seat capacity and measure 10,000m². It will be used for netball and gymnastics during the Games before being transformed into a multi-sport centre.
The strong property markets of Australia’s capital cities aren’t being replicated across all regional centres according to data released by CoreLogic RP Data.
The Regional Report which includes the Gold Coast property investment market for the March quarter 2017 shows that resource-driven regions aren’t benefiting from the ripple effect from the capital city markets.
“While low interest rates have contributed to consumer’s being more confident in property purchase decisions, not all regional centres are enjoying a boost with areas closely linked to resources sector still seeing deteriorating property conditions,” CoreLogic RP Data senior researcher Cameron Kusher said.
It’s far from doom and gloom for all regional markets however, with many coastal markets likely to continue as strong performers.
“We’re starting to see greater home value growth across many coastal lifestyle markets. With mortgage rates tipped to remain low, the attractiveness of housing, particularly in some of the larger coastal regional markets, is likely to continue to show further growth over 2018,” Kusher said.
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