How is the Gold Coast boosting Australia’s economy?
The Gold Coast is growing rapidly – it's clear to see for so many of the residents in the region. And it's welcomed as well, because more growth means more money flooding into the region and more jobs for the construction sector. It's a win-win really.
According to a 3 May media release from the Property Council of Australia, growth and jobs are being linked heavily to construction around the country. So many new homes are shooting up in our region, and soon it could be easier than ever to buy a brand new house on the Gold Coast.
New buildings on the rise
For a stronger economy in our great nation, we need to keep pushing forward in all of our industries. Property is one of our biggest sectors – CoreLogic RP Data reports it is worth $6 trillion.
In the south-east of Queensland, there is so much potential to grow and rival the country's largest cities. For that to happen, our housing industry must expand to meet demand, and recent data suggests that this is the case already.
A report from Jones Lang LaSalle (JLL) states that between now and 2020, there will be 15,937 new apartments under construction, a further 5,108 being marketed for sale right now and 12,684 plans for new buildings approved. That could amount to a total of 33,000 new apartments in the next four years, and a number like that could open the market right up.
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The Federal Budget was released on 3 May, and chief executive of the Property Council, Ken Morrison, believes it has forecast some fantastic developments for the state of play around the country.
"This Budget confirms that the continued strong performance of the property industry is vital if the Australian economy is to keep delivering jobs and growth," he commented.
"We are currently moving through the top of the construction cycle and the Budget forecasts this to continue for another two years, with economic growth also to lift to 3 per cent. To deliver this growth will require a concerted effort by all governments."
There is a great framework in place for the property sector to continue its strong expansion through this year and beyond, and Gold Coast real estate is looking set to benefit greatly.
How else is the property sector being supported?
Growth and construction aren't the only things that boost an industry such as property – there needs to be financial interest from buyers across the board in order to sustain the values that are such a fantastic boost to the region.
"The boost to infrastructure spending, the extension of small business concessions, modest tax cuts and the retention of the current arrangements for taxation of property investments will help ensure that the property sector remains an important driver of economic growth," said Real Estate Institute of Australia president Neville Sanders.
"Investment in dwellings is forecast to grow at 8 per cent in 2016-17 and peak in 2017-18 with a record number of completions."
CoreLogic RP Data's monthly indices state that the median value of all dwellings in Brisbane and the Gold Coast is $538,030 – an increase of 6.38 per cent over the past year, and a whopping 1.81 per cent growth over April figures. There's some very serious interest in Gold Coast property at the moment, and it might be wise to get a foot in the door before a real boom happens and prices shoot through the roof!
Talk to the team at Ray White Surfers Paradise today to see what options we have available for you to enter the property market in this popular, growing region – the Gold Coast.