Issue 24 | November 23rd, 2017 | Mixed Messages For The Australian Real Estate Market
I am really thrilled to be coming to you today from 82 – 84 Savoy Drive, Broadbeach Waters. This is an amazing unknown pocket of inner-city living that is truly one of the best-kept secrets on the Gold Coast. This spectacular home is on a park-like 1,507 square metres of land, with 30 meters of private beach, plus an additional 270 square metres of exclusive views water front lawn. With views from where I am standing here all the way back over 20 acres of parkland and, as you can see in the background, a crane on the construction site of Jewell which is on the absolute beachfront of Surfers Paradise. This Hamptons style home is unique in so many ways. Unique in style, but unique in feature after feature that cannot be duplicated anywhere on the Gold Coast. It is a double allotment with a north east aspect to water. Have a good look through as I share some thoughts with you for this fortnight.
One of the little understood drivers of the Australian property market over the past few years has been the Australian population growth. Our population recorded its fastest rise in nine years in the March quarter just past, with a quarterly growth of 126,000 people. If that pace was to continue it would give us a growth of over half a million people annually. Annual births are around 300,000 per annum which means the balance is made up of migration.
The nation’s population expanded by 40 percent since 1990 and whilst this adds to the strong demand for real estate, this recent growth adds to evidence that the nation’s economy is set to strengthen in 2018. It is a little known that population growth remains a primary driver of Australia’s economic performance and job creation.
Our Governments find themselves in tricky situations. Strong population growth is the key driver of economic activity and prosperity, yet it results in us needing to build increasing numbers of new infrastructure and upgrading old, and of course, an off-spin of this population growth is the demand for real estate.
Melbourne in particular, followed by Sydney, is seeing the strongest component of the national population growth and therefore it is no surprise that they have seen the strongest growth in property values through stronger demand. The Gold Coast does not see the same growth in population through immigration but we ultimately become a recipient through migration from Sydney and Melbourne. Whilst that has been quieter for some years, we are really starting to see a surge in this migration and this is contributing not only to our population growth but the demand for real estate, and subsequently, rises in property values.
We have been working hard to establish a direct link into the Sydney market as it has been proving to be highly lucrative for Gold Coast sellers, and we are currently recording the highest volume of buyers out of Sydney than at any time in the past.
This population growth is proving to be a great underlying foundation for not only supporting our growth here on the Gold Coast but also strengthening our property values on the Gold Coast.
82 – 84 Savoy Drive, Broadbeach Waters is truly is an extraordinary home and it goes to auction on the 16th of December at 10am. Do yourself a favour and come and inspect the property prior to that. As I mentioned, this home is one of a kind in an inner-city marketplace and has features that cannot be duplicated anywhere else. We are very proud to be marketing this home and excited to meet the new owners.
I look forward to being with you again in a fortnight’s time which will only then be days to go until Christmas. Stay safe.
If you want to get a information on The Event please visit the website here or call 1800 198 009.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group