Andrew Bell’s Market Update: The Event Results Are In
Issue 3 | February 2nd, 2017 | The Event Results Are In
We have been talking about it for some weeks and I am now thrilled to be able to tell you the results.
Over 2,000 people attended through the course of the day, resulting in 333 registered bidders, who bought 54 properties on auction day and with a further 11 which have now gone to contract subsequently. The total dollar sales volume was $40,600,000 million and right now we have a flurry of contracts which we are negotiating on remaining properties. Many of our sellers are in other parts of the world and so it slows down the speed of negotiations. I am sure over the days to come we will find the great majority of the 115 properties are sold.
There are some really clear observations we have made, as a result of the month of marketing, as well as the auction day.
There was a significantly higher number of sales in the $1,000,000 million plus bracket. For example; there were three different apartments which sold between $1,100,000 and $1,600,000 million, there were numerous house sales over $1,000,000 million and with the highest sale under the hammer at $3,500,000 million in Paradise Waters. This is the strongest activity in this higher price bracket than we have seen since 2007.
WHAT WERE THE 3 BUYER TYPES?
We recorded strong interest out of Melbourne and Sydney and this activity could be broken into three segments.
- The first segment: – There were a lot of people on the verge of retirement, who were setting themselves up for retirement. They were buying now, even though they were not intending to move here for a couple of years. I could quote one couple who sold a house for $2,800,000 million and were buying a property on the Gold Coast for $1,000,000 million and were going to invest the rest of the money in their retirement.
- The second group out of Melbourne and Sydney were people purely buying holiday properties. They think the new Gold Coast is fantastic and want to spend more holidays and weekend getaways up here.
- The last group were just pure investors who were very open about the fact that you can’t buy decent investments in Melbourne and Sydney under $500,000 whilst, here on the Gold Coast, we still have a wide selection of properties in the price bracket.
We also observed the signs of first home buyers reactivating. We really have not seen them for nearly 10 years. Unfortunately many missed out, whilst others were successful, there were a lot of them in the auction room looking to buy in the lower end of the market.
The other clear message, which was coming through the month of January, was this great belief in the Gold Coast. People talked about the fact that it was clean and sparkling and never looking better. They were impressed with the way we have made major investments in light rail transport, upgrades to Pacific Fair and many other infrastructure investments. Almost everyone has commented that we now have some of the best selection of restaurants in the country and, of course, everyone appreciates that the Gold Coast will be better off for hosting the Commonwealth Games and that we will get enormous national and international attention over the year ahead.
It has been a wonderful start to 2017 for Gold Coast property. To get a sense of The Event auction last Sunday, click on the Channel Nine news coverage, which gives you a pretty good overview. Click here to view the video.
ARE YOU READY TO SELL?
We are now faced with a situation where over 270 of the registered bidders missed out on buying properties of their choice. We are seeking to re-list new properties quickly. We have to be able to help those buyers with new stock choices over the next couple of weeks
CLICK HERE FOR A FREE APPRAISAL OR PHONE 1800 198 008.
THE EVENT IS NOT OVER YET
The Event 2017 is not entirely complete. Last Sunday was the residential component. However, coming up on the 16th of February we have our commercial component of The Event 2017. As most commercial buyers know; there is an acute shortage of properties available to purchase and real estate is certainly now the preferred option for so many investors who know there is no return in the bank, who are nervous about the gyrations in the stock market and who are looking for a clean commercial investment.
Have a look at the the properties here – as any commercial buyers may well find something that suits them. Our sales agent contact details are of course with each property.
That is it for this week. I look forward to being back with you in a fortnight’s time.
Best wishes for now.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group