Issue 11 | Thursday 1 June 2023 | Housing Trends, Supply Shortage, and Call to Address Homelessness
Hello, this is Andrew Bell. The weather here on the Gold Coast over the past few weeks has been truly breathtaking. As residents, we fully understand why it’s considered one of the world’s top six climates. We can’t get enough of it. Today, I’m thrilled to be speaking to you from 97 Commodore Drive in Paradise Waters.
Wow! This property is absolutely stunning. It sits on a much larger allotment, spanning over 1100 square meters. Located on the northern side of Paradise Waters along Main River, it occupies a small and unique section of residential property. Just recently, a home just a few doors away was sold under the hammer at auction for $10.8 million by Robbie Graham from our Ray White Prestige team.
This home is relatively new and presents an excellent opportunity for those looking to live in and add value to their property. It gives you an idea of how sought after these homes are. While I guide you through the home and share more information later, I’d like to address the feedback I received from my last enews. Many people were understandably frustrated with the lack of action on the main issue in our current housing crisis: supply.
While not much is happening at the federal level, I was pleased to see the Queensland Government taking steps by identifying unused and vacant land sites held by the Government. They suggest using these sites to create low-cost housing and rental accommodation. Let’s hope we move swiftly from talk to action, as governments are often slow to act.
Recently, the Real Estate Institute of Australia held a board meeting and a roundtable discussion with key stakeholders to address the housing crisis. Attendees included Mayor Tom Tate, leading real estate economist Nerida Conisbee, and others with deep knowledge of the situation on the Gold Coast. Together, we aim to work on policy recommendations to present to and discuss with the Federal Government.
As a board member, I had the opportunity to contribute critical recommendations to the government. We are determined to take a strong stance on these issues. Meanwhile, you may have come across the new CoreLogic House price report indicating a recovery on the horizon.
While some may consider this optimism, there are a few factors that support this belief. The federal government has announced a sharp rise in immigration, leading to projected population growth in the coming years. However, housing approvals have dropped to their lowest level in nearly two years. In the 12 months leading up to March, new dwelling approvals across the country fell by 15% to a mere 180,000. Construction levels are expected to be even lower, compounded by rising building costs, interest rates, and a lack of buyers committed to building new homes instead of purchasing existing ones.
Are these forecasts of a real estate market turnaround mere speculation? Recent auction results indicate otherwise, with incredible success rates across the country. The Ray White Group on the Gold Coast achieved an 86.7% success rate on auction day, with an average of 4 to 6 registered bidders per auction. These statistics demonstrate the strength of the marketplace.
Furthermore, housing prices have started to rise in many parts of Australia, albeit by a small percentage. This suggests that the market’s correction phase may have come to a halt. While some buyers who purchased in 2021 and 2022 may have felt the impact of rising interest rates, those who bought prior to 2021 have not experienced significant effects. As fixed-rate periods end later this year, it will be interesting to observe how homeowners handle higher interest rates. However, many have also seen substantial increases in their property values, enabling them to refinance and draw down equity to assist with loan repayments.
It’s surprising to witness a minor pickup in real estate activity and prices as we approach the peak of the interest rate cycle. The pandemic has brought many unexpected developments, and this is yet another one. Nonetheless, we must remember that the real estate market is driven by the fundamental forces of supply and demand. With the current shortage of supply and high demand, it’s no wonder that real estate prices continue to rise.
Before I provide more information on 97 Commodore Drive, I’d like to address an important matter. Homelessness has reached record numbers across Australia, and with winter approaching, the situation is becoming dire. During my early morning walks, I witness more families sadly living in their cars or setting up tents in various locations. Homelessness has more than doubled in the past couple of years, and this winter is expected to be exceptionally cold.
We have an opportunity to help our fellow Australians who find themselves in unimaginable circumstances. For the fifth consecutive year, I’ll be participating in the Vinnies CEO Sleepout. The demand for assistance is higher than ever, and I kindly ask you to consider donating to my fundraising appeal. On June 22nd, I will be sleeping rough, and your support can make a significant difference in the lives of many. Please consider making a donation, as even a $20-25, $50, or $100 contribution can go a long way. DONATE HERE
Now, back to 97 Commodore Drive. This extraordinary home boasts a breathtaking position and sits on one of the widest sections of the river. It holds the distinction of being one of the largest single-title land allotments in Paradise Waters. The property exudes style and character, featuring a spacious jetty and the potential for further improvements. With an abundance of bedrooms and two premier living areas, it truly stands out. Additionally, the rooftop viewing area offers a unique vantage point. To truly appreciate its splendor, I invite you to come and see for yourself.
Don’t miss out on the opportunity to become a resident of one of the Gold Coast’s premier areas. That concludes our report for now. I look forward to joining you again in two weeks’ time. See you then.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group