Gold Coast Property Market Update August 2019

The Gold Coast offers many options for home buyers in all sectors of the market. Property fundamentals change depending on region and with the property market offering everything from entry-level units through to prestige acreage, the Gold Coast definitely caters for all types of buyers. It is probably easier to look at the different regions that make up the Gold Coast to understand the key features and drivers that are important in buying decisions.

North–West Gold Coast Property Updates

First home buyers and young families are more attracted to the developing areas of Yarrabilba, Bahrs Scrub, Holmview and Flagstone, as they are driven by affordability. Generally, first home buyers and young families are looking for a new or near new home rather than having a large land parcel. Proximity to parks, amenities and shops are also an important contributing factor to deciding where to buy for this category of purchaser, and as such these developing areas are constructing parks and amenities to meet these needs. For example, in Yarrabilba, there is another school currently being constructed along with the expansion of shops and green space to accommodate the growing population of families with young children. Generally, homes in these areas can be secured for $350,000 to $450,000. Being able to secure a new or near new home which is move-in ready is a major driver.

Upgraders are looking for more space (larger land area) and close proximity to transport, schools, amenities and shops. These buyers are driven by the accessibility and convenience of being able to walk or drive five to ten minutes to get to shops and schools. These buyers focus on the more built-up areas of Coomera, Upper Coomera and Ormeau, where public transport is also easily accessible. More specifically, the Westfield Coomera Town Centre is within a 10 to 20-minute drive for most and there is public transport that directly links residents to this shopping centre. Generally, these suburbs offer semi-modern dwellings on 600 square metre blocks in the $450,000 to $650,000 range.

Downgraders are seeking similar attributes to upgraders in that they want shops, amenities and transport to be within five to 10-minute walking distance. Downgraders are more attracted to the house aspect rather than having a large block of land. A recent sale of a seller who is downgrading is 20 Hiddenvale Circuit, Yarrabilba for $343,000 (10 May 2019).

This seller was downgrading due to the inability to walk to shops and amenities and the lack of public transport in this suburb. Downgraders are similarly seeking properties in more built-up areas.

The areas of Lower Logan (Mount Warren Park, Edens Landing, Bethania and Windaroo) attract young families to older residents being established suburbs, close to amenities, shops, parks and public transport. Properties in these locations range from $300,000 to $450,000.

Gold Coast Central Property Updates

The main drivers in the low-density suburbs of Mermaid Waters, Broadbeach Waters, Bundall and Benowa are:

• Proximity to the beach
• Available rear water frontage or views
• Condition and size.

Mermaid Waters offers dry blocks with original homes starting from the low $600,000s located within three to four kilometres of the beach. Push the price a little further up to the mid $700,000s and up to around $950,000 and you can buy a fully renovated house on a dry block in the same locality. An example is 17 Alec Avenue which recently sold for $862,500 and is a recently renovated single level dwelling providing three bedrooms, one bathroom, detached single carport and in-ground pool on a 607 square metre parcel of land. The property is within 400 metres of the popular Nobby’s Beach café and restaurant precinct and within 900 metres of the beach and will be in close proximity to the future planned next stage of the light rail system. The dwelling is reportedly only 135 square metres of living area and was originally built in 1975.

Further out in Ashmore and Carrara whilst still being located on the beach (east) side of the Pacific Motorway, these areas provide options for the first home buyer bracket.

In Ashmore, freestanding small lot homes on circa 400 square metres of land start at around $400,000 and provide three bedrooms, two bathrooms and two-car accommodation. An attached duplex unit can be purchased in the $340,000 to $400,000 range, offering a great entry point for first home buyers without breaking the bank. In Carrara, freestanding basic dwellings providing three-bedroom accommodation are selling in the low $400,000s but circa $500,000 will provide something more reasonable with some updating work being completed. A partly updated three-bedroom, two-bathroom, single garage and single level home built in 1988 located at 64 Chisholm Road (a local semi thoroughfare) recently sold for $500,000. It is located on a 794 square metre corner site.

Duplex units in the same locality within 50 metres of the railway line start at around $360,000 and for $460,000 a first home buyer or investor can upgrade to a three-bedroom plus study, two-bathroom duplex with single garage and distant city skyline views.

Houses in Mermaid Beach east of the Gold Coast highway continue as a premium beachside suburb underpinned by their high underlying land value component. Sites generally range in size from 405 up to 455 square metres. The starting price in here is well above the first home buyer bracket but suits buyers who want easy walking access to the beach, cafes and amenities. The future planned extension of the light rail will go past this suburb.

The entry price in Mermaid Beach is evidenced by the sale of 33 Surf Street for $1.015 million for a 1950s lowset cottage with an asbestos roof on 405 square metres of land with a largely very dated fit-out. It is situated towards the western side of the suburb being within 55 metres of the Gold Coast Highway and within 280 metres of the sand. The improvements are considered of little added value in this sale with the purchase price representing the high underlying land content.

Gold Coast South Property Updates

Miami, Robina, Palm Beach, Elanora, Tugun, Currumbin, Burleigh Waters and Burleigh Heads attract home buyers who seek to be within close proximity to schooling, parks and shopping centres with easy access to the beach.

The entry-level to the market in this area is the sub $500,000 for a two-bedroom unit or townhouse market which is largely made up of first home buyers and young families, then followed by investors for the rental incomes that can be achieved. Any two-bedroom configuration that has been renovated or is relatively new is preferred by owner-occupiers and investors are buying the older or poorly presented properties and renovating them.

Second and third home buyers and families are opting for mid-range value properties of between $500,000 and $1 million with the buying decision driven by proximity to schools and amenities. Houses are preferred for this segment and the renovated or new house market is very strong with good prices being achieved when compared to original houses in the area.

The market for over $1 million is still strong with good prices being achieved. Buyers purchasing this property type are generally husband and wife with full-time jobs and older kids (teenagers). Proximity to schooling and local shops isn’t a must but they prefer to be closer to the beach and hospitality and café precincts. High-end units and high-quality fitouts are sought after in this segment of the market. New stock is preferred however a good renovated property will still attract high buyer interest.

North Central Gold Coast Property Updates

On the north-central area of the Gold Coast, it’s all about securing a property as close as possible to the Broadwater or one of the many bodies of water such as the Coomera River, Biggera Creek, Saltwater Creek or one of the many canal estates. To have direct water views, aspect or boating access is what drives the market. Generally speaking, higher property values are correlated to these locations.

Good water locations are out of the reach of the typical first home buyers, however, being able to secure a dwelling in the suburbs within 10 to 20 minutes drive of the Broadwater is a major marketing factor. Suburbs such as Coombabah, Arundel, Molendinar and Parkwood still offer basic semi-modern dwellings in the $460,000 to $525,000 range. All of these suburbs are situated on the eastern side of the M1 motorway and are now advantaged from having proximity to the new light rail system which links to the Brisbane to Gold Coast electric rail.

Chirn Park in Southport has recently seen improved buyer demand. Being an older area with a good café precinct and in close proximity to the Southport CBD and Broadwater, Chirn Park is most popular with home renovators with basic modest-sized detached dwellings on say 500 square metre allotments in a mainly original condition available in the $475,000 to $575,000 range.

Hollywell continues to be a good option for detached family-sized dwellings, being in close proximity to the Paradise Point café precinct and the Broadwater. Dry dwellings here can be secured between $550,000 and $700,000.

The Southport School residential precinct continues to be in strong demand. Premiums are paid for dry and riverfront properties in this prestige location.

Gold Coast West/North West Property Updates

The western corridor of the Gold Coast provides affordable options for prospective homeowners, being cheaper than its central and southern Gold Coast counterparts.

Suburbs such as Highland Park, Nerang, Pacific Pines, Maudsland and Upper Coomera are popular amongst first homeowners and young families, with some families opting to upgrade within the suburb for their second or third homes. A number of options exist for this sector of the market, including house and land packages, second hand detached dwellings and attached duplex and townhouse villa units. A property that an upgrader recently purchased is 3 Starush Court, Upper Coomera for $633,000 (7 April 2019). Their reason for upgrading was due to space – they wanted a home where their teenage kids could have their own spaces in the house as well as enough land that their younger kids could play in the yard and not have to go to the park to play outdoors.

Duplex, townhouse and villa units (usually two or three-bedroom units) appear to be popular for young and first homeowners, as the detached dwelling price may just be out of reach. Prices for townhouse, duplex or villa type accommodation in these suburbs generally start from $275,000 up to the low to mid $400,000 mark.

House and land packages within the $500,000 to $650,000 range are popular in a number of modern and developing estates such as Pineview Estate and Huntington Rise in Maudsland. Families are active in detached homeownership, requiring housing in close proximity to schools, transport and shopping and are popular in Upper Coomera and Maudsland.

The western rural acreage townships of Jimboomba, Tamborine, Woodhill and Mundoolun attract families upgrading and those seeking rural lifestyle. There are a number of rural acreages detached housing estates such as Mahoney’s Pocket by QM properties in Woodhill or Jimboomba Woods in Jimboomba. These estates offer rural residential acreage allotments ranging in price from $300,000 to $475,000. These blocks are being purchased by families and upgraders wanting the extra space.

Prestige-end purchasers exist in the western rural acreage areas such as Guanaba, Wongawallan, Willow Vale and Maudsland. These areas provide larger acreage for buyers who may have horses with associated infrastructure and ancillary improvements. This market is limited and more susceptible to a decline in the market, however, their close proximity to the M1 and services and amenities are currently underpinning demand.

Speak with a Gold Coast Mortgage Broker today.