Issue 24 | Thursday, October 22nd 2020 | The Gold Coast Defies National Market Trends
Hi, Andrew Bell here and I am coming to today from a spectacular home at 3-5 Westminster Court, Sovereign Islands.
This north-facing property on a 1,621sqm block is quite breathtaking. It has so many impressive features, far too many to mention here, but they range from 2 master suites, 5 bedrooms in total, an executive office, a circular library, an 8-car basement garage, a gymnasium, plus a deep-water pontoon to fit a 90ft vessel. If you like your wine, there is also a temperature-controlled wine cellar to house 1500 bottles. The list goes on and on. Have a good look as I share some information with you.
More and more evidence is starting to surface about the significant trends that have been created by COVID-19; working from home, moving out of highly densely populated areas, decisions to get rid of debt and look for a simpler lifestyle, unemployment etc. etc. It has resulted in significant market shifts. A great deal of Australia has already recorded significant falls in property values caused by a combination of people selling out of certain markets and fewer buyers for those markets, whilst a few small and limited number of markets proportionally have actually seen the reverse; fewer people wanting to sell and leave those markets whilst an increasing number of people wanting to relocate to those areas.
Queensland in general and the Gold Coast specifically has been one of those markets that has seen a significant surge in its real estate activity. Locals repositioning themselves into different housing but staying on the Gold Coast, whilst many people are migrating from interstate. Simple investors who no longer want to leave their money dead in the bank or risk what appears to be an overheated stock market are buying what is seen as incredibly good value real estate investments on the Gold Coast where our vacancy rate is so low.
I want to share with you this incredible example of the activity. In the backdrop of us being the leading real estate office on the Gold Coast for the past 31-years, apart from the occasional little spike of short-term sprinters, we are beyond question the best barometer of real estate activity. We are the largest property management office on the Gold Coast, we cover commercial, industrial, retail, residential apartments, housing and prestige homes, and of course new projects. Last week we set a new company record where in a 5-day period between 9:00am Monday and 5:00pm Friday we sold 59 properties. This is extraordinary. Sales right across the ballpark with our lowest at $145k and our highest at exactly $10m. Lots of sales in the $3m+ bracket, but of course the bulk between our lowest sale price and $1m. It was simply extraordinary.
We saw some easing back of property management enquiries where pre COVID-19 it was usual for us to field between 4,000 and 4,500 enquiries per month, but that spiked at 9,600 enquiries midyear and has now eased back to just over 7,000 enquiries in the last month. The normal vacancy rate is around 3%, but our current vacancy rate is 0.7%.
I share this information with you as evidence of the belief in the Gold Coast property market at present. We know that the wave of buyers from interstate will subside with time. Not everyone can move, not everyone will get a job up here, many will not want to leave their families, and indeed you can’t even move if you can’t get a good price for your home. The wave of investment buying will also reach a peak and subside, and so it is with this in mind that it is timely for all potential sellers to re-think their position. Catch the wave. Enjoy the most favourable selling conditions since 2007. As we continue to be the leading real estate company of the Gold Coast selling more properties than anyone else, please reach out to us on the details on screen now and we will be only too happy to talk through what is best for you; whether that just be for an appraisal or to answer any questions you might have about the market.
Next fortnight I will share with you more statistical information about Queensland. In the meantime, I hope you have enjoyed looking over 3-5 Westminster Court. Sovereign Islands has always been known as our most prestigious Gold Coast island; beautifully positioned on the most northern residential point of the Gold Coast Broadwater and as such, providing a unique private environment yet on the doorstep of the best boating you will find anywhere in Australia. For more information about the property, please contact Jackson Paradise.
We are just a week away from the beginning of November and then that very quick slide into December. It is the quickest part of the year. I will also be announcing something very exciting in my next market update, so until then let’s support one another in the most positive and constructive way possible because we are battling a tsunami of negativity and that does not help anyone’s mental health.
I look forward to being with you in a fortnights time.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group