Issue 14 | July 4th | Strong Population Growth Boosts Gold Coast Market
I am thrilled to be showing you through Serenity, a new boutique apartment building about 6-months off completion in a very quiet residential location on the border of Surfers Paradise and Broadbeach, yet with everything you want only minutes away.
The last two weeks has seen a huge demonstration of how strong the Gold Coast market is at present. We had our in-room auctions a fortnight ago with some 27 properties going to market and with 19 of those properties now sold. The very big crowd in attendance was just another indication of the strong interest in our market post-election.
Sales ranged from $237,000 through to our highest under the hammer at $5.3 million. Subsequent to that, we had 2 other outstanding on-site auctions with a property in Kawana Crescent, Ashmore selling for $2 million and another under the hammer in Yacht Street, Southport for $7 million. The crowds were big, registered bidders are up substantially, and we haven’t even hit the spring season yet. I know we get significantly better results than anyone else in the market but these sales don’t occur unless the buying interest is there in the first place, and, of course, carefully structured marketing campaigns help those buyers become aware of these great properties on the market.
This activity is certainly a reflection of what everyone is now coming to terms with and that is, the bottom of the market has passed.
One of the key drivers of the real estate market is population growth. It is not something we are aware of daily, but it is occurring without our awareness. A baby boom has helped bumped (no pun intended) Australia’s population over 25.2 million with record numbers of births last year. We are on trend to hit 30 million within a decade. 314,900 babies were born last year with boys at 161,900 and girls at 153,000. Record fewer deaths last year made up the other half of that equation to give us a result of natural increase in population accounting for 39% of the nations population growth. Therefore, the other 61% is made up of migration; with an extra 248,000 people coming to Australia in that last year.
On a Gold Coast level, the latest research shows that approximately 146,000 people are expected to migrate to the city over the next 10 years. About 40% of those are expected to be aged 55 and over. That means we will need to build an extra 5,650 new dwellings each year to meet those demands. It also does not mean building Retirement Villages as the great majority of these migrators are looking to upgrade their lifestyle while in a downsizing process. They want a property that is comparable in size to a small home and is well designed to suit their needs. It is part of the reason why the Gold Coast remained resilient throughout the last 18-months when the big cities were going through substantial price correction.
Below is a copy of the annual net interstate migration to Queensland and you can see how it has increased significantly since 2014.The need to keep providing the type of dwellings that these migrators are looking for must be upper most in developers’ minds. In fact, our development here at Serenity is a classic example of what people are looking for these days. Serenity features 24 two-bedroom apartments across ten levels, as well as a great rooftop recreational area. It is placed just 600m from the beach and just 100m to the light rail. These must be representing the best two-bedroom apartments in Surfers Paradise with pricing starting from $589,900. One of the key factors for many retiring parties is low body corporate levies and with Serenity levies coming in from approximately $56 per week, this is quite low for an apartment with the kind of facilities this building offers. Serenity embraces the idea of open plan living flowing out to large live-in balconies and features flawless custom cabinetry and stone bench tops in the kitchen and bathroom, plush carpets in the bedrooms, and high-end European appliances throughout. There is of course the opportunity to put the best of technology in with connection to NBN and up to quadruple the fastest broadband speeds currently available. Serenity has prime north-easterly aspects and most apartments have stunning views across the Nerang River, the Surfers Paradise skyline, and the leafy park opposite.
Details of our Ray White Projects sales team is 1300 881 629 or email@example.com. As this building is nearing completion, they will be snapped up fairly quickly, so don’t miss the opportunity of these beautifully positioned brand-new apartments.
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That is all for this fortnight. Some really strong activity by our office in the auction arena and it is comforting to see that one of the prime drivers of the real estate market, namely population growth, is in such a strong position, and especially here on the Gold Coast.
See you in a fortnights time. Stay safe and let’s look after one another.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group