Surfers Paradise and Gold Coast residential property had a rather fantastic year in 2016. Price growth remained strong, construction commenced to near-boom levels and sentiment about the future of the market remained overwhelmingly positive. It's no wonder that industry analysts and commentators have identified the city as one of Australia's most exciting property markets.
After the success of 2016 what does this year hold? Is price growth set to continue? Is now the time for investors and home buyers to get on the market and make the most of its opportunities? To help answer all the questions you might be asking about the property market coming into the near year, we've whipped up a few predictions for what's likely to happen in 2017.
The Gold Coast was Queensland's star performer in terms of value growth last year. An NAB report compiled using CoreLogic data shows that home values in the regional city increased by 5.3 per cent last year – that's 2.3 per cent more than Brisbane.
While we can never be certain of the exact figure of this year's price increases, we can be fairly sure that they'll impress. The most recent NAB Residential property survey corroborates this theory, showing that the bank's analysts expect the city to once again be one of the best performing area's in Queensland and the country.
One of the more modest predictions – the QBE Australian Housing Outlook – still expects the Gold Coast to experience positive growth. Their forecasts expect house prices to increase by roughly 8 per cent from 2016 to 2019. However, they expressed concern that due to high levels of construction, unit prices may experience slowed rates of growth or even a fall up to 2019.
Media outlets and industry analysts have been commenting on extremely high levels of demand for Gold Coast property recently. This is a trend that property investors in particular will want to pay attention to, as high demand places upward pressure on prices increasing the value of property.
If the market is at the cusp of a boom, or a sustained period of price increases, now may just be the perfect time to make your move and buy before prices skyrocket.
Local developers and councils have obviously taken note of the levels of demand, as residential construction in Queensland has been at an all time high. According to the Housing Industry Association's data we saw near-record high dwelling commencements in 2015 and 2016 in Queensland (47,360 and 49,650, respectively) and expect to see 44,140 in the coming year.
Several of these commencements may come to market this year, increasing supply and helping to satisfy the massive demand for Gold Coast property.
Another promising sign for Gold Coast property investors is the fact that at the end of 2016 residential property vacancy rates dropped to extremely low levels. SQM research puts the rate at only 1.6 per cent, while the Real Estate Institute of Victoria estimates that it's closer to 2.5 per cent.
If we experience similar vacancy rates in 2017, investors will enjoy secure and solid investment income when buying property in the Gold Coast.
We certainly don't have a crystal ball, but these are our best guesses. If your interested in riding the wave of Gold Coast property, and taking advantage of our city's impressive growth then get in touch with your local real estate agency today.