Finding blue chip suburbs in the Gold Coast
The Gold Coast has one of the strongest property markets in Australia these days. It's not much of a surprise – there's plenty going for it. Whether it's the Commonwealth Games, the plentiful beaches or the rapidly-expanding property market, everybody seems to want to grab a slice of this fast-growing, top-performing regional town.
In fact, the Real Estate Institute of Queensland found that the Gold Coast had the largest annual increase in median sale price for houses across the state, while also snagging a silver medal over a five year period. Nowadays, the median home sits pretty at a price tag of $557,500, quickly working its way towards higher echelons of value and providing plenty of equity for homebuyers interested in the area.
The rental market is also going strong, with most homes sitting above the 1.5 per cent vacancy rate over the last three years. CoreLogic RP Data even reports that the Gold Coast had the largest increase in dwelling sales over the year across Queensland, up to the end of 2016. Huge demand for local properties is fuelled a 7.3 per cent increase in sales volumes, demonstrating just how many people are keen to get their own slice of Gold Coast property. This growth isn't relegated to a single area, nor is it just a sudden spurt over the short term.
Princes among suburbs
However, despite this incredible development, there are some suburbs which managed to go above and beyond even this high level of performance. Even in a strong market, these suburbs truly take the cake when it comes to extreme value growth. Whether from high demand or rapid population increases, there are some areas of the Gold Coast that are an investor's dream – and a first home buyer would have done well to buy in them when they were still affordable!
Using CoreLogic RP Data, the Gold Coast Bulletin reports that there are three such suburbs; Coolangatta, Miami and Mermaid Beach. If you have bought a home in any of these suburbs two decades ago, you would have seen your home value not just double, triple or quadruple, but in some cases get close to five times what they were worth in 1996. That a growth from $250,000 to a sale price of $1.2 million for Mermaid Beach.
However, before you go kicking yourself, you would have been forgiven by passing on these areas back then, as resident Alf Vockler explained to the Gold Coast Bulletin
"Mermaid Beach was not sought after in the early 90s because it was just an old dirt road and everyone wanted to be in Surfers Paradise," he said in a June 11 article.
"A lot of wealthy people have moved into the suburb and I would estimate that less than 50 per cent of locals from 1996 have stayed."
It just goes to show, you can't always predict where the next big hotspots will be. After all, once upon a time even the valuable Sydney property market was made up of farms and rural roads! As more and more people get priced out of the big cities, it's likely we'll continue to see value growth ripple outwards as young families and retirees alike seek out affordability in the face of incredible value gains in the metros.
Are you looking to get your hands on your own piece of the next big property market in the Gold Coast? Get in touch with the team at Ray White Surfers Paradise and find out how we can help you discover a wide range of available real estate.