Issue 5 | February 27th | Population Growth Elevates Real Estate Demand
Hi, Andrew Bell here and coming to you today from a property that would not have a comparable anywhere in Australia. I am talking about 46-48 Peak Avenue, Main Beach. I have just finished a conversation with the seller who has asked me to pass onto you the knowledge that this property has been put on the market because the seller has purchased elsewhere due to the family downsizing and they are fully committed to that purchase and this property must be sold no matter what the price on the day of auction. It is a 1,062m2 parcel of land which is an incredibly rare double block in a beautiful section of Main Beach that does not permit high-rise development and it is where we find a wonderful pocket of homes. Think about it…a double block of north facing land in Peak Avenue, Main Beach.
As promised, today I am sharing insights populations shifts and how this dimension of population growth is having a profound effect on different markets around Australia and particularly here on the Gold Coast.
Population growth is one of the major drivers of the real estate market. Knowing how real estate construction is one of the main drivers of economic growth in Australia, it has been essential. Two things drive population growth and one is natural birth and the other is immigration. In the Australia Bureau of Statistics we see our population grew by 381,000 to June 2019 which is a good healthy number for Australia and so we have a steady contributor to a constant demand for real estate.
What is rarely spoken about is the population shifts that happen within the country. It is really exacerbated in recent years by the baby boomers downsizing and making retirement choices, and young people who are trying to find where they can afford to buy homes within Australia and where jobs are available.
Looking at the resident population comparing to ten years ago we see that Tasmania is the greatest beneficiary of this movement with resident population up 100 percent, QLD up 12 percent, VIC up 9 percent, NSW up 6 percent, and even SA up 6 percent. However, if you have a look at NT you will see they are down 160 percent, WA down 28 percent, and the ACT is down 12 percent. It is no wonder Tasmania has seen such a massive growth in their real estate prices and likewise the states of VIC and NSW, and why cities like Perth are in the absolute doldrums with their real estate market. The reason the Queensland property market is in such a healthy position is this surge of existing Australian residents moving to QLD and that is not likely to change anytime soon. Whilst the Gold Coast doesn’t capture all of them, we do get a very healthy slice of those interstate migrators.
As the largest real estate office on the Gold Coast, and indeed Queensland, we are a pretty good barometer of what is happening. Since the new year, we have sold well in excess of 120 apartments alone plus a whole array of housing. It is this sector of apartment sales that is most definitely the busiest as a result of the downsizers, and over the last couple of weeks we have sold a penthouse for just on $6 million, four sub penthouses between $4 million – $5 million, and a host of units over $1 million. It is the strongest run of apartment sales in these price brackets that we can ever recall and we have been the largest sellers of units on the Gold Coast for over thirty years.
Our housing market has also of course been incredibly strong and it seems that rarely does a week go by that there is not a numbers of sales anywhere from the early million to the highest prices obtainable on the Gold Coast.
It is this population shift that is having the most profound effect. We are also fortunate that Ray White is the largest international company in Australasia, and we are constantly fed through details of buyers where our interstate offices are selling their property and where the seller is moving to the Gold Coast. It does give us a very large stream of interstate buyers. At the moment, we generally have more buyers than we have properties to offer them as we have sold out such a huge percentage of the properties we have had for sale.
With many not finding properties to buy they have turned to the rental market. We are the largest property managers on the Gold Coast with some 3,500 properties, but we are in the most incredible position I have ever seen with 0.4 percent vacancy. Yes, sure, our team does run such a great operation that we have processes to ensure properties are not left vacant, but beyond question it is the stronger demand for rentals that created that all-time record low for vacancies.
All this bodes well for a continuing good market on the Gold Coast and there is so much more I could discuss on this topic alone but time does not permit.
I hope you have enjoyed viewing this property. I am sure you have picked up on the fact that it is themed on the Beverly Hills Hotel. One of the most famous hotels in the world and home to many Hollywood stars. It is a big 5-bedroom home with an amazing 25 metre resort style lagoon swimming pool. However, forget the amazing home for a moment and stop and think about the fact that it is a double block of land, north facing, and in one of Queensland’s most desirable suburbs. A small boutique suburb that is built on lifestyle by the fact that you have the ocean to the East, the Broadwater to the North and West, and a River that snakes through making it virtually an Island. There are great coffee shops and restaurants in walking distance, and it has a village atmosphere made up of predominantly owner-occupiers who are proud of their suburb and absolutely love living there. The suburb can’t get any bigger, but the population does every day of the week, and so this is one of the most sensible places to have a strategical holding of real estate. The details of Jackson Paradise the marketing agent are on screen. The property will be open this weekend between 10:00 – 10:30am both Saturday and Sunday, but otherwise give Jackson a call and he can show you through. It is absolutely worth an inspection. Remember, this seller has told me to let you know that they will sacrifice price for the peace of mind knowing the property is sold on auction day.
Remember, our Business Meets Sport lunch is on Friday, 27 March 2020, it is always a great day and we would love to see you there. Please contact Selena Carson on 0410 650 185 or at email@example.com to book your tickets today.
I would also like to acknowledge Lee and his wife Robbie Kernaghan, local Gold Coasters who opened the big Fire Fight Australia concert the week before last. You did us proud, Lee as we know you were a driving force behind the concept.
Until I see you in a fortnights time, stay safe and let’s keep looking after one another.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group