Issue 20 | Thursday 7 October 2021 | All eyes on the Gold Coast
Hi, Andrew Bell here with you and today I will be sharing some more very relevant information about our Gold Coast property market.
It would be neglectful if I didn’t quickly touch on our amazing Spring Selection auction held last Thursday 30 September. Forty properties were listed with a cross section of apartments, houses, and commercial. Not surprisingly, 46% of properties sold in the week or two leading up to the auction day. This is because offers were made that were simply too good to refuse. There was then of course auction day where 6 of the properties had more than 15 registered bidders and all properties excluding one had multiple bidders. From the first auction onwards, it was sale after sale after sale. A well-conducted auction provides the opportunity for the market to speak, and it did. Many properties sold above reserve price; with the highest percentage being 15% above the reserve. In total, the sales rate on the day was 94% and with only a couple of properties unsold on the day, we are confident that we will have those sold very shortly. This day was just a further example that the only way to sell a property in today’s market is via an auction conducted by experienced salespeople and auctioneers who have decades of evidence of being competent in the auction arena. It was another amazing day for the Gold Coast property market.
Now to some further information that highlights why the Gold Coast is very much on the national real estate radar.
It does take time for official figures to be gathered so we don’t yet have an official read on just how many people have migrated to the Gold Coast over the past year, but what we do have are estimates that Queensland’s population growth will be something like 38,000 people per year for the next five years. Southeast Queensland, and in particular the Gold Coast, is likely to be the greatest recipient of that migration. That means we will need somewhere between 14,000 to 15,000 new dwellings constructed annually.
The immediate impact of migration is a huge demand for rental properties. Most people want to simply get here as fast as they can and then take their time to work out where it is they would like to live – the northern Gold Coast, southern Gold Coast, or somewhere in the middle. There is huge demand currently for rental properties yet an acute shortage. For that reason, we have seen sharp rises in rents due to the old supply and demand driving force in the market. For over 12 months we have desperately needed more investment buyers and we are finally starting to see investors respond. Over the year to July 2021 investor home loans surged 160% in Queensland over the previous 12 months. Investors are finally becoming attuned to the fact that you can buy a rental property and no longer must live with negative gearing but rather have a positive cashflow investment; giving you an annual return each year plus the benefit of capital gain. It is a standout investment in today’s market.
Now here is some information that really demonstrates the strength of the Gold Coast property market and just how strong buyer demand is. A new report from Domain listed the Top 20 suburbs across Australia for property transactions. Which suburb could you imagine topped the country with the most number of sales? It was Surfers Paradise. 2,325 people chose to buy in Surfers Paradise. The second-placed suburb was the city of Melbourne with almost half as many with just 1,210 sales. These figures tell us numerous things such as the migration from other parts of Australia is stronger than we perhaps even imagined. It confirms that the greatest percentage of the migration is focused on the Gold Coast. It says that the flagship suburb of the Gold Coast, namely Surfers Paradise, is in greater demand than ever. It also tells us that a large proportion of the migrators are opting for apartment lifestyle as Surfers Paradise has the largest number of apartments of any suburb in the country
We were certainly aware of how strong the demand was. Every week we have so many of our Ray White offices from around the country contacting us with yet another family that wants to migrate to the Gold Coast. They have listed their current home for sale with one of our Ray White offices interstate and have asked them to contact us to provide information about properties we have for sale, send them videos/floorplans etc., and so many are buying sight unseen due to lockdowns. The desire to move is so great and most are aware that borders are likely to open by years end and they want to make their move here in the new year.
By the way, there is a second Gold Coast suburb that is featured in the Top 10 suburbs for sales transactions in Australia, and that was Southport with 984 sales for the year. Southport has been surging in status over the past couple of years. It is now recognised as the CBD of the Gold Coast, it is the heartland of the medical and education precincts, and it has grasped the attention of developers and renovators. New apartments and townhouses are popping up strategically and so many of the older homes have been renovated; making them incredibly desirable properties.
A pretty strong endorsement not only of the Gold Coast but of Surfers Paradise and Southport when you see just how many people are wanting to buy in those suburbs.
The spinnaker is up and we are capturing strong winds to take us through until the end of the year which is just 10 weeks away. It is always an incredibly busy time in real estate. I am refraining from updating you every month with all the record sales we are making as we have moved from being astounded by these sales to now feeling that it is just everyday life. There is hardly a sale we are making in the auction rooms that isn’t a new suburb, street, or building record sale price. It won’t and can’t continue forever, but for those selling at present, it is simply a case of making hay while the sun shines.
In closing, congratulations to all our team at the Ray White Surfers Paradise Group for picking up so many awards at the Ray White Queensland Annual Awards night, ranging from the No. 1 Office for the Volume of Sales, No. 1 Salesperson in Matt Gates, No. 1 Property Management Office for the fourth year running, Marketing Office of the Year, and quite a few more that time does not allow to mention.
We are here to serve you so please do not hesitate to reach out either via return email or on 1800 198 009 for any of your real estate needs. Until I am with you in a fortnight’s time, I trust and hope your world gets better by the day.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group