Issue 26 | December 19th | Perhaps it is a Merry Christmas!
Hi, Andrew Bell here and coming to you for the last time for 2019 from 5929 Turnberry Terrace, Sanctuary Cove. Today, I have some very relevant updates to wind up the year, but first a few details about this stunning home.
Now, this home is something special. It truly is in an idyllic elevated once-in-a-lifetime golf frontage location. Sanctuary Cove is regarded as Australia’s premier Integrated Resort and this home overlooking the golf course is unparalleled. Customized by the current owners to exacting standards, this residence exudes an elegant ambience from the moment you want through the doors. Approximately 82 squares of home on 1,975m2 of land, it features four hotel suite style bedrooms all ensuited, relaxed indoor and outdoor living options, gourmet Gaggenau kitchen with butlers pantry, dual studies, outdoor kitchen, cinema room with state of the art equipment, and lush tropical gardens complete with cascading rock water wall to Cassia Lake.
This property is being marketed by Matt Gates 0404 444 439 and Trish Edwards 0417 615 517 of our Ray White Sanctuary Cove office please reach out to them for more information or to arrange an inspection.
My last report summarised the activity for the year and showing the strong price growth that has been occurring in most areas and most sectors. This has caused a lot of discussion in the last week or two in the media about how price rises are putting a lot of pressure on household finances. People are a little challenged to understand whether housing affordability has improved off the back of falling interest rates, or whether it has declined as a result of rising prices. Interestingly, dwelling values have actually risen at roughly the same pace as household incomes over the last decade; which means, in non-technical terms, that the ratio of dwelling values relative to household income is fairly much the same.
Interest rates have fallen to figures that none of us have ever seen and that certainly has improved loan repayment serviceability. At the same time, in the decade leading up to June of this year, we have seen medium dwelling values rise from $382,650 to $516,710. That equates to about a three percent rise per annum.
I have talked a lot this year about the lack of wages growth. Over the last ten years, it had averaged around 3.1 percent which means we have risen from just over $59,000 per annum in 2009 to just short of $80,000 per annum this year. To get a comparison, average mortgage rates have fallen from 5.1 percent back in 2009 to 4.1 percent this year. As you can probably gather from the above, the ratio of dwelling values to household income is pretty much the same right throughout that period. If anything, generally speaking we are not paying as much of our income towards a mortgage than we did ten years ago.
The ratio of dwelling values to household income has varied over the last ten years and has moved from a low of 6.1 percent in late 2012 rising to 7 percent in 2018, however, the good news is by June 2019 it had dropped back to 6.5 percent. This is a fairly typical amount which relates to Australian household spending about 6.5 times the gross value household income in order to purchase a typical dwelling.
This isn’t to say that we can sustain a long period of price growth, but it does answer some of the questions that have been asked about how much pressure the current surge in property values is going to have in the market at large.
This is the last of this year’s market reports and I want to thank so many of you who have special appreciation for the time and effort that is put into giving you a broad spectrum of information about not only the broader property market but the Gold Coast in particular. Last week, we celebrated our 30th anniversary of owning and running the Ray White Surfers Paradise Group. 220 of the most amazing people delivering amazing results through unparalleled resources that our office provides.
We are proud to be an iconic business here on the Gold Coast and we look forward to the next decade and the amazing future the Gold Coast has.
On behalf of our whole team, my brother Greg and myself, we extend the most sincere Season’s Greetings to you. This is such a family orientated time of the year and I hope you get to enjoy this season with your loved ones and remember how lucky we are to be in this amazing part of the world. Live life with appreciation and generosity, and good things will always come your way.
For more information on our program for The Event 2020 contact our hotline 1800 198 009 or email email@example.com. We can only take limited numbers so for anyone considering selling, please reach out to us immediately so we can give you more information and make sure you are part of the program.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group