This article is from the Australian Property Journal archive
THE Gold Coast residential property market has been propped by first home buyers, according to Landmark White.
According to LWM, sales are well down with transaction activity decreasing by more than 50% in the last 12 months. But first home buyer activity has risen, the number of $7,000 boosts paid in the March quarter in Queensland for established property accounted for almost 89% of the total boosts paid, with only 1,059 or 11.16% paid a $14,000 boost.
LMW said activity across larger development sites has almost halted whilst smaller sites on the Gold Coast under $2 million are still transacting and are in demand, mainly to produce affordable product under $500,000.
These sites have been selling at a discount to the levels witnessed in 2007 with prices achieved at up to $50,000 per product in emerging areas and up to $75,000 in established precincts.
Investors remained on the sidelines for most established stock on the Gold Coast. LMW said there have been some indications new townhouse and units are receiving increased level of interest due to the strong rental market.
“However, prospective investors are also finding finance increasing difficult to access due to similar reasons mentioned previously and also have concerns of rising unemployment impacting the rental market,” LMW said.
LMW predicts the Gold Coast residential market in the short term will be mixed.
“It appears that the prestige market may have hit the bottom with some recent improvement in activity; home affordability has been good for the last six months and some encouraging indicators on the economic front.
“However on the flipside, the staggered removal of the First Home Owners Grant boost, the rising cost of funds and access to credit with looming increases to unemployment and underemployment may drag on the overall Gold Coast market,” LMW concluded.
Australian Property Journal
