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Gold Coast Flat Market Case Study

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Near moderateness and high rental returns are the continuous key drivers for investors on the Gold Coast. As other eastern-seaboard flat markets manage supply concerns and additionally weaker rental economic situations, the Gold Coast has profited from being an option speculation alternative. The Gold Coast rental opportunity rate for all homes expanded 40 basis points (bps) to 1.5% amid the first quarter of 2016. This is well beneath the market balance of 3.0% (Abodeeb, Wilson et al. 2015).
Fixing loaning conditions from both the retail and business keeping money divisions has relaxed investor request and directed the supply pipeline. The Gold Coast Central area remains the essential concentration of remote and interstate financial specialists …show more content…

Outside Gold Coast Central, ventures have been to a great extent concentrated on the proprietor occupier market, which are for the most part littler and arranged tasks. Request has stayed vigorous in this part as the more extensive Gold Coast private area recuperates from its post GFC aftereffect. Illustrations include: - Boardwalk at Burleigh by Morris Property Group and Amalgamated Property Group (128 units)
• Atmosphere at Ashmore by the Howard Group (208 units)
• Sage (organize 4-7) in Merrimac by Minamarc (111 units)
Pricing
On the back of a tight rental market, median values expanded 2.2% y-y in the 1Q16. This is over the 5-year normal yearly development rate of - 0.1%. The middle cost of a Gold Coast unit is presently $374,000, underneath that of Brisbane ($405,000) and Sydney ($670,000). Figure 3: shows the annual Median Apartment Growth
Considering the health of the Gold Coast rental market it is anticipated that capital value growth will continue in the short-medium term. Nevertheless some areas with pockets of supply being completed may see downward pressure on capital values (Abodeeb, Wilson et al. 2015).
Rental

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