Affordable housing, jobs and lifestyle.
While the Gold Coast has been known as a relatively volatile “boom and bust” market in the past, it appears that .. the times they are a changin.
More affordable houses and job opportunities are the biggest drivers of the latest population surge. Queensland is on track to top 5 million residents for the first time by the middle of the year.
However, is this a good investment market?
Over the years the Gold Coast has been known for lifestyle, leisure and retirement. This has changed significantly due to cultural and economic expansion.
What was once a holiday playground has morphed into a sophisticated metropolis.
The Gold Coast is the second largest city in Queensland with a current population of over 540,000. It is the sixth largest city in Australia.
Demographer, Bernard Salt has stated that the Gold Coast needs to prepare for a population of 1.2 million people by the year 2050. Mr Salt says the 2018 Commonwealth Games will provide infrastructure and promote the city to the world but he says he is looking further into the future.
“Sure the Commonwealth Games is important and will deliver an extraordinary legacy and impact for the Gold Coast but we want more,” he said.
“We want a Gold Coast in 2050 that has a diverse economic base.”
This could mean dozens of new schools, more shopping centres and hundreds of extra hospital beds could all be on the horizon for the future of the Gold Coast.
What has changed?
Along with the most of SEQ, the Gold Coast was hit hard by the GFC. Many areas are only now emerging since that impact. Over this time, the nature of the demographic has changed.
Recent increases in population, jobs and growth has been enhanced as a result of the Commonwealth Games being staged on the Gold Coast. Much of the upside has already been delivered in the preparation for the games. This is not to say that growth will not continue- however at a slower rate. The event will “spotlight” the city to the world.
There is no doubt a shortage of property currently available has resulted in high yields and a low vacancy rate. This is also “area specific” as there are pockets of investment oversupply.
Beware of the sharks!
There are “markets within markets”. Buying an investment with sustainable growth requires an understanding of the local growth drivers and the balance of supply and demand. These elements fluctuate so timing is important. In the short term, the demand can change much faster than the supply of housing.
Understand what product type is being constructed to meet demand increases. The significance of this is made clear by the recent increases in higher-density housing. Lower growth of those prices has been achieved relative to prices of detached houses, whose supply has been less responsive in some areas.
While the southern states have become too expensive for many, the result has been a quite dramatic increase in interstate migration into SEQ.
In short, there are excellent signs for long term sustained growth around the Gold Coast. Better still, the yields are strong at the moment in both established and new property. The caution is to ensure the specific investment is relevant to current and future demand. It is also essential to consider the time frame & available budget of the individual investor.
The mix of owners and investors is critical in determining long term success. Cheap land releases, marketed predominantly to investors on the back of a good story is dangerous. The devil is in the detail. Get quality, unbiased advice that will fit your unique circumstances. Change is always just around the corner- often out of site. Ensure you go into the investment with a buffer to mitigate unexpected changes in personal and market conditions.
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covered ALL your bases.