Month In Review June 2024

Lucy Cole Prestige Properties: Month in Review – June 2024

The Gold Coast real estate market has experienced a dynamic month, reflecting both resilience and growth across various sectors. Here’s a comprehensive look at the latest trends and notable activities in the market.

Residential Market Trends

Central Gold Coast: The market for units up to $750,000 in Broadbeach and Surfers Paradise has improved significantly over the past year. Stock levels remain tight, and local agents report strong buyer enquiry from both owner-occupiers and investors. This interest is particularly focused on units with lower body corporate fees. Examples of recent sales include a two-bedroom, two-bathroom unit in Broadbeach which sold for $675,000 and a three-bedroom unit in Palm Beach for $720,000 (HTW-Month-in-Review-Jun…) .

Southern Gold Coast: The residential market on the Southern Gold Coast continues to show strength. Properties under $750,000 have seen a 5-10% increase in value over the past 12 months. Despite higher interest rates since May 2022, demand remains robust, with properties in this price range selling quickly due to limited stock. Buyers are now often looking beyond coastal areas to suburbs like Robina, Varsity Lakes, Reedy Creek, Elanora, and Currumbin Waters.

Rental Market Insights

Rental demand remains high across the Gold Coast. The tight rental market reflects limited stock and sustained demand, pushing up rental prices and maintaining strong returns for investors (HTW-Month-in-Review-Jun…) (HTW-Month-in-Review-Jun…) .

The tight rental market is a result of several factors:

• Limited Stock: There is a scarcity of rental properties available, leading to increased competition among renters. This lack of supply has been exacerbated by the influx of people moving to the Gold Coast, attracted by its lifestyle and economic opportunities.
• Sustained Demand: The appeal of the Gold Coast as a prime living destination remains strong. This sustained demand is driven by both local residents and newcomers, including interstate and international migrants who are contributing to the region’s population growth.
• Rental Price Increases: Due to the high demand and limited stock, rental prices have been driven up. This trend is beneficial for property investors who are seeing strong returns on their investments. However, it also poses challenges for renters who are facing higher costs and increased competition for available properties.

In response to the strong demand, investors are showing increased interest in the rental market. The attractive rental yields and the potential for long-term capital growth make the Gold Coast an appealing destination for property investment. This trend is likely to continue as more investors seek to capitalise on the robust rental market conditions.

 

Industrial Market Developments

On the central Gold Coast, there’s a noticeable trend of refurbishing older industrial buildings or replacing them with modern structures. This shift is driven by the increasing focus on the industrial sector. Developers are favouring multi-unit developments, which offer better profit margins compared to standalone warehouses. Significant sales include a 3100 square meter building in Luscombe sold for $10.25 million and a 3500 square meter vacant land site in Stapylton sold for $800 per square meter (HTW-Month-in-Review-Jun…) .

 

Investment Opportunities and Challenges

The Gold Coast continues to present lucrative opportunities for investors, driven by a combination of high demand, attractive rental yields, and ongoing development projects.

Key opportunities include:

• High Rental Yields: Investors can benefit from the strong rental market, with high demand pushing up rental prices and providing attractive yields. This is particularly true in sought-after areas like Broadbeach, Surfers Paradise, and the southern Gold Coast.
• Capital Growth Potential: The Gold Coast’s property values have been steadily increasing, offering potential for capital appreciation. Investors looking for long-term gains can capitalize on this trend, especially in areas undergoing significant development and infrastructure improvements.
• Diverse Property Options: From luxury beachfront apartments to affordable units and family homes, the Gold Coast offers a wide range of investment options. This diversity allows investors to tailor their portfolios to their specific goals and risk tolerance.
• Development Projects: Ongoing and upcoming development projects, including residential complexes, commercial spaces, and infrastructure enhancements, are set to boost property values and attract more residents and businesses to the area. Investing in properties near these developments can yield significant returns.

Challenges:

Despite the positive outlook, investors should be aware of several challenges that may impact their investment strategies:

• High Competition: The strong demand for properties, especially in prime locations, has led to fierce competition among buyers. This can drive up prices and make it more challenging to secure desirable properties within budget.
• Interest Rate Increases: The rising interest rates since May 2022 have impacted borrowing costs, making it more expensive for investors to finance their purchases. This can affect overall profitability and cash flow.
• Affordability Issues: With property prices on the rise, affordability has become a concern for many buyers. This is particularly true for those looking to invest in detached houses in high-demand areas, where prices have soared well above the $750,000 mark.
• Regulatory Considerations: Investors must navigate various regulatory requirements, including those related to property management, taxes, and compliance. Staying informed and compliant with these regulations is crucial to avoid potential legal and financial issues.
• Market Volatility: While the Gold Coast market has shown resilience, it is not immune to broader economic factors that can cause market volatility. Investors should be prepared for potential fluctuations and have strategies in place to mitigate risks.

Overall, the Gold Coast remains a compelling destination for property investment, offering a mix of opportunities and challenges. Investors who conduct thorough research, stay informed about market trends, and work with experienced real estate professionals can navigate these complexities and achieve their investment goals.

Market Outlook

The Gold Coast market is expected to remain buoyant, supported by strong demand and limited supply. Investors and homebuyers alike should be aware of the evolving landscape and the opportunities it presents. With strategic insights and a focused approach, navigating this dynamic market can yield significant rewards.

Contact Us

For more information on the latest trends and how to make the most of the current market conditions, contact Lucy Cole Prestige Properties. Our experienced team is here to guide you through every step of your real estate journey.

This summary provides an in-depth view of the Gold Coast real estate market for June 2024, highlighting key trends and insights that are crucial for investors, homebuyers, and industry stakeholders. Original information sourced from HTW Month in Review, June 2024​