Andrew Bell’s Market Update: Surge In Population Growth
Issue 12 | June 8th, 2017 | Surge In Population Growth
Recently information has been released which adds to my discussion recently about the signs of a surge in population growth here on the Gold Coast, which of course is definitely feeding the Gold Coast property market.
Before I go into more detail, I know from feedback how much people enjoy viewing exceptional properties when I am providing my e-newsletter. I am absolutely thrilled to be coming to you from 22 – 24 Admiralty Drive, Paradise Waters. This home truly ranks as one of the Gold Coast’s most iconic homes. On 1351 square metres of prime main river land, with the prized 6-knot non-traffic waterway directly in front and breathtaking view into the heart of the city. It reminds us how central this home is, yet in this exclusive, very private and extremely quiet pocket.
For those who are truly looking for one of the Gold Coast’s most amazing homes, do not fail to do a full private inspection to really see why this home stands above all others. Please feel free to get in touch with the marketing agent, Robert Graham’s here.
HOW POPULATION GROWTH IS AFFECTING THE RENTAL MARKET
The Australian Bureau of Statistics has just released some information showing the different growth centres throughout Australia. The Gold Coast is fuelling a national population surge, massing enough new residence to fill Mermaid Beach every 6 months.The Gold Coast has welcomed twice as many people in the past 12 months than the also-booming Sunshine Coast and outstripping Brisbane’s growth outstripping impressive.
Social Researcher, Mark McCrindle, said the Gold Coast was growing far more quickly than the break neck national and state averages – up to 7 times faster in some suburbs.
Now you will remember a couple of months ago I talked about the early signs of this population growth that was turning up in our rent roll, which would be one of the largest rent rolls on the Gold Coast. Vacancy factor was now under 1%, and it was not unusual for us to have as many as 60 people viewing an open home for any 1 rental property, depending on the area of the Gold Coast the property was located in. Only two years ago vacancy rates were around 3%, and it was not unusual to only see a couple of people turning up for an inspection. This significant turnaround in tenant demand was an early sign that there was a lot of migration occurring to the Gold Coast off the back of our booming construction and tourism industries, and of course in anticipation of the upcoming Commonwealth Games.
IS POPULATION GROWTH THE SAME NATIONWIDE?
Growth is never uniform across a country, or indeed a whole city. For example, in the past 12 months Australia has seen grow of 1.4%, the greater Brisbane city has done better than this at 1.6%, yet here on the Gold Coast, in areas such as Coomera and Willowvale, we have experienced between 5 – 7% growth. But this is not uniform across the entire Gold Coast market and does vary from suburb to suburb.
We have become a go-to place and as a result not only are we seeing interstate migration, that is people coming from other parts of Australia to the Gold Coast, but there is a good deal of intrastate migration, where people from others parts of Queensland are moving to the Gold Coast. I am suspecting off the back of Cyclone Debbie that we might even see an increase in this.
WHERE IS THE GROWTH COMING FROM?
Interestingly, and particularly for our prestige market, we are seeing a lot of people who had postponed retirement now seizing better economic times to retire, and as such moving to the Gold Coast. Whilst others are simply capitalising on the huge prices that are being achieved in Sydney and Melbourne to sell their high wealth homes in those areas and to pick up some of the prized Gold Coast homes. As a result, over the past year, we have seen sales at $25 million, $20.6 million, $15 million, and a large host of sales between $5 million to $10 million. It is a huge vote in the confidence of our city, and these homes are representing great value in the marketplace.
The Gold Coast really has a lot going for it. It is a great place for young Australians as it does have some of the most affordable housing options in the country, but it is also the retirement capital of Australia, and so we have the full cross-section of community engagement.
These are definitely interesting figures that are supporting this confidence that the Gold Coast is in the best position it has ever been in, and we all look forward to the benefits of that flowing for years to come.
Also, do not forget to book your table for the Ray White Surfers Paradise Muscular Dystrophy ball on the 9th of September. We only released the date three weeks ago, and already half the tables have been booked out.
We’ll I will be back with you in a fortnights time. Stay safe until then.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group