November 2015 Market Update
Looking at the current state of the market in the central areas of the Gold Coast, we have seen increases in values in all property types. The price sector that seems to be running the hottest is the $400,000 to $800,000, these properties are generally detached dwellings suitable for families who are owner-occupiers. We note that properties in this price range are now selling over previous peak prices of 2007. This has been fuelled by the limited supply and high demand.
It is quite common for properties to sell within one week of being listed after receiving multiple offers. But we NOTE, that the best offers are actually coming in 14 days after being on the market which is different advise than other agents about town.
New developer stock has been selling quickly with a lot of international demand; the area that has been the hottest is Robina with most of the developers almost sold out of their current stock. The only sector that hasn’t seen this rapid growth is the $1.5 million plus market. We believe there is good value in this sector as this price range still remains out of reach for the majority of the market. This sector will start to pick up as a flow on effect from the lower price range as they start to increase. We believe the strong performance in the residential sectors will be sustainable over the coming year if the interest rates remain the same, once the rate starts increasing the market will start to ease off.
In 2015 there has been continued improvement in the residential property market across most sectors but not all sectors. The vacant land sector has perhaps been the strongest with the majority of estates having sold out or close to selling out. There is reportedly no developed stock available in Casuarina, with resales very strong. There has been a recent resale of a 500 square metre allotment in The Pocket for $520,000 which was originally purchased off the plan for $395,000. There has been an improvement in prices for vacant land in Terranora as demand is now stronger than supply. The Hidden Valley estate at Tallebudgera is almost sold out. Sales have been strong at the observatory and Varsity Heights estates at Reedy Creek and also strong in Palm Beach Heights at Elanora. From Miami to Pottsville the housing sector has continued to improve throughout 2015, being strongest in the under $750,000 price bracket.
In most localities demand is outstripping supply. As Valuer’s, in a lot of cases sales evidence is not directly supporting new sales. There has also been strong sales activity in the over $750,000 price bracket in waterfront localities such as Currumbin Waters, Palm Beach and Burleigh Waters. Duplex units have been selling well across the board along with townhouse and villa units in small complexes. A significant percentage of sales of these properties are investment sales. A townhouse unit in a large complex at Burleigh Waters is currently under contract for $325,000 whereas the highest sale in the complex prior to this sale was approximately $300,000 At Burleigh and Palm Beach there has been some recent building activity for good quality duplex type units, with developers confident of making sales over the $750,000 price bracket. Some recent sales include a new duplex unit at Palm Beach for $800,000 and another duplex sale at $980,000. There has recently been some strong sales activity for low-rise units along The Esplanade at Burleigh Heads. Sales activity and market demand for lowrise unit in the under $500,000 price bracket has also improved. There have also been some capital gains for well-located high-rise units. There has been a recent sale of 2-bedrooms, 2-bathroom unit in the rear Ambience building at Burleigh Heads for $730,000 which previously sold in June 2011 for $625,000.
Caution remains for low-rise and high-rise units in large, older buildings in secondary locations where high body corporate fees may apply. Local agents are reporting limited levels of demand for similar properties.
Article from Eureka Property