Your Investment Property reports that according to Ray White Surfers Paradise Group, the Gold Coast City will continue to attract investors as Sydney and Melbourne markets continue to see ever-reducing affordability.
Ray White Surfers Paradise Group chief executive officer Andrew Bell said there was a huge increase of sales in Gold Coast City from investors when the southern state markets started to become unaffordable.
“People were buying properties sight unseen. For properties in the $400,000 to $420,000 range people were ringing up and offering $410,000. Other investors were just flying up on the weekend and then going home having purchased something,” he said.
“Because our prices hadn’t gone up so much recently our yields are more attractive than in other areas and our vacancy rate, which I believe is down to around 1.7% is only going to help that.”
The 2018 Commonwealth Games has helped Gold Coast City see additional infrastructure spending, but Bell said spending has increased on top of that.
“There’s something like $10 billion dollars of worth of expenditure happening here at the moment,” he said.
“That’s a combination of government spending as well as private operations like Jupiter’s. There’s a real sense of optimism and renewed confidence throughout the area.”
Louis Christopher, head of SQM Research, reinforces the positive sentiment and predicts property values rising by 7% – 11% during 2016 and rental yield growing to around 8% in 2016.
“We believe Gold Coast property investors are likely to enjoy good returns, both in rents and capital growth for up to the next three years,” he said.
Robina, the geographic centre of Gold Coast City currently has over a billion dollars worth of investment underway including a private hospital, upgrades and expansions to existing infrastructure such as Robina Town Centre and Robina Automall as well as an intensive development pipeline of residential homes and commercial office precincts.
There are several opportunities available to secure property off the plan and take advantage of what is looking likely to be a strong 2016 property market. Boheme Apartments are now selling from $455,000 and Botanique Terrace Homes are now selling from $555,000.
