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How easy is it to buy in Surfers Paradise?

By Andrew Bell

The sun, the sea and the beautiful white sands of the Sunshine State draw in large volumes of people to visit each year.

In fact, information from the Gold Coast Convention and Exhibition Centre states that 12million people, domestically and internationally, visit annually, and 12,500 new people call the south-east of Queensland home.

An estimated 500,000 people currently live in the area, and that number is expected to rise by 320,000 through 2035. With so many people flooding into the region, it should be more difficult to purchase a property of your own, right? Wrong. It is actually becoming easier, and here's why:

Building through the roof (not literally)

The Australian Bureau of Statistics reports that there has been a 51 per cent increase in new dwelling approvals over the past 12 months. That means a significant number of new residences for the increasing populace.

For anyone thinking about purchasing property in Surfers Paradise, the numbers should be encouraging. In January 2016, Ray White Surfers Paradise held 'The Event' which saw more than $33million worth of property transactions in a single day. Clearly the conditions are ripe for buying, and your family could benefit from swift action. With 6,702 new dwellings planned, the region will open that market even more, so finding your perfect patch of real estate in Surfers Paradise next to the beach might be a lot easier than you once thought.

There could even be more incentive to invest in a property as well, with such high targets for new population growth and an economic plan raring to see improvements all over the city. The Economic Development Strategy 2013-23 has been underway for some time now, and the target of 23 per cent more employment in the next seven years is good news for new residents. The standard of living is also expected to increase, with 22 per cent greater productivity in the workforce helped along by an 18 per cent growth in gross regional product.

The Real Estate Institute of Queensland (REIQ) also reported good news for potential owner-occupiers. A media release from November 2015 stated that while the Gold Coast saw the highest quarterly growth of 3.8 per cent in median house price, the largest in all main regions of the country, the figure topped out at $545,000. As a median number, it is important to note that half of all properties will still lie below this value so there could be an affordable avenue into a thriving market for first homebuyers.

Investment seeing great returns

There is also an increase in confidence surrounding the investment market, with great rental returns being noted.

"The vacancy rate on the Gold Coast is 1.7 per cent, which is officially classed as tight, and it has been in the tight range for nine consecutive quarters," said REIQ CEO Antonia Mercorella to Domain Group in a 19 January 2016 interview. 

With the large numbers of new developments, there could be a fear that over-supply is a possibility. Apparently not, according to industry experts.

"We have some incredible numbers in south-east Queensland with inner-city Brisbane and the Gold Coast clear hotspots," said Dyan Johnson, the Master Builders manager of policy and economics.

A low vacancy rate coupled with projected strong growth that will be matched by demand is a fantastic equation for property investors to look at. With a relatively low median house price, the potential for rental yield is also high. However, the continued growth in the region could well see that median house price value skyrocket, so acting quickly and getting a foot in the door soon could be a very shrewd move.

Contact the region specialists at Ray White Surfers Paradise and see what the team can offer you.

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