The apartment market in Gold Coast City is seeing rapid growth as buyers find value in the area and are securing apartments in anticipation of the 2018 Commonwealth Games.
Domain Group chief economist Andrew Wilson said the improving market is due to a variety of factors such as an increase in infrastructure projects, which is resulting in growth and sales and prices.
“I think the Gold Coast is still set for another five per cent year this year and on the back of what is quite a strong resurgence performance by the local economy,” he said.
“A lot of that is because of significant levels of infrastructure that’s been going on in the area with hospitals, universities and a lot of high-rise development activity. High-rise is back in town, apartments are back in town on the Gold Coast, even though that market still probably hasn’t bottomed out in terms of price cycle.”
According to Mr. Wilson, the 2011 announcement of the Commonwealth Games helped revive the Gold Coast City market, but is not the only reason.
“Big events tend to have a leading effect on [the] housing market and sort of peter out closer to the event. I think we’re seeing that now with that development but that’s just part of the equation, not the full story,” he said.
“It’s just adding to what’s been a resurgent market. I think affordability and an improving economy are the keys there and so much infrastructure work has certainly created a lot of jobs, particularly for tradesmen.”
Gold Coast City is one of Queensland’s strongest performers in the 2015 property market with Real Estate Institute of Queensland data showing house sales increased by six per cent over the fourth quarter and 14 per cent over the entire 2015 year.
“I’ll say this to anyone who wants to listen, I think the Gold Coast apartment market is probably the best value housing market in the country,” he says.
“It just doesn’t get any better than that in terms of value, and if you’re paying 4.5 per cent interest, that’s just the icing on the cake.”