Gold Coast Property Market Update July 2020

Central

As a broad overview, the beachside localities comprising Main Beach to Mermaid Beach remain steady with a lower volume of sales at around existing price levels. Agents are generally reporting a lack of stock for sale with many potential vendors reportedly holding off selling currently.

Units in Surfers Paradise have been hit by the travel restrictions due to COVID-19, with agents reporting reduced returns for investors in short term holiday letting complexes. A follow on effect is that these owners or investors are often trying to remove the unit from short term holiday letting into a permanent rental arrangement, which appears to be having a negative impact on rental returns in the permanent letting sector as well due to the increased supply.

Houses in the suburbs remain stable.

There currently appears to be stronger market interest in well-presented or renovated rural residential properties, with one agent reporting strong interest in a recently renovated property at 13 Waratah Court, Bonogin. This is a circa 1999 fully recently renovated, part two-level dwelling providing four bedrooms and three bathrooms to the main level with a self-contained one-bedroom, one-bathroom granny flat under. The land area is 3605 square metres. The list price was $885,000 and the property sold for $915,000 with the agent reporting multiple offers over the list price.

In Main Beach, a three-bedroom, two-bathroom unit of 174 square metres situated on the third floor of the Spinnaker building recently went to contract at $745,000. This had a renovated kitchen from some years back but dated now with the bathrooms in original condition. Reasonable ccean views are available over and between buildings. This unit was purchased by a local buyer intending to renovate.

In Ashmore, $700,000 will get you a renovated three- or four-bedroom dwelling generally with a pool. The sale of 24 Mingaletta Drive, Ashmore achieved $686,000 in January 2020 and comprises a renovated, onground, single level, fourbedroom, two-bathroom, semi-modern dwelling with rendered brick walls, concrete tiled roof and one-car garage situated on a 682 square metre lot. Ancillary improvements include driveway, fencing, landscaping and pool. The dwelling was fully renovated approximately two years ago.

Mermaid Waters is located closer to the beach and Pacific Fair Shopping centre and you get a little less bang for your $700,000. A three-bedroom townhouse at 34/2 Karbunya Street sold in March 2020 for $633,000 and provides an end part twolevel unit with three bedrooms, two bathrooms, a single garage and one unsecured and uncovered off-street car space. The townhouse was in mostly renovated condition with a reasonable sized courtyard and is within 400 metres of the popular Nobby Beach retail and restaurant precinct and within 800 metres of the beach.

An older style house at 56 Surfers Avenue in Mermaid Waters sold in March 2020 by remote auction for $615,000. It comprised a 1970s onground brick and tile dwelling with three bedrooms, one bathroom and single carport accommodation. This definitely represented entry level buying and was sold as a renovator. The majority of the value lies within the land value component.

If you are looking at two properties for your $700,000, then Mudgeeraba offers that opportunity as you can get two, three-bedroom, two-bathroom townhouse units. Mudgeeraba is located just to the west of the Pacific Motorway and within close proximity of Robina Town Centre. A townhouse at 24/17 Douma Drive sold in January 2020 for $330,000. Offering a 1997, part two level, three-bedroom, two bathroom attached townhouse unit with brick veneer and hardiplank walls, tile roof and one-car built-in garage plus two-car off street parking, it had undergone some internal updates which were mainly cosmetic. Similar townhouses offer a good rental return with a three-bedroom townhouse typically renting for between $400 and $450 per week.

Moving on to the housing sector within Mudgeeraba and still under the $700,000 budget, you can get a semi modern three- to four-bedroom house with a double garage starting from around $575,000. Two examples of recent house sales are:

9 Swanton Drive sold in February 2020 for $613,000 and comprises an onground, single level, three- bedroom, two-bathroom dwelling with brick and rendered brick walls, concrete tiled roof and two-car garage. The property has good external condition, good internal condition and fair presentation. Areas: Living – 125 square metres; Outdoor – 42 square metres; and Car – 44 square metres. Ancillary improvements include exposed aggregate driveway, fully enclosed yard with timber fence, gravel paths, patterned concrete paths, established landscaping and garden shed, retaining walls. The land area is 585 square metres.

29 Rainbow Drive sold in February 2020 for $700,000, comprising a renovated, three-bedroom plus multi-purpose room, two-bathroom dwelling with rendered brick walls, concrete tiled roof and one-car attached carport. Features include: overall renovated interior with renovated kitchen and bathrooms; local and mountain views; ancillary improvements such as driveway, fencing, landscaping and swimming pool with glass pool fencing. The property has good presentation. The land area is 1,074 square metres.

A more centrally located area such as Carrara offers a basic three-bedroom house for between $460,000 and $500,000 which leaves change in your pocket for a small one-bedroom lowrise unit in Surfers Paradise for around $200,000.

An example of a sub $500,000 house in Carrara is 6 Mayjohn Avenue, which sold in February this year for $496,000 and offers a semi-modern style home with three bedrooms, two bathrooms and two-car detached garage and storage. The home needed some work but features included polished timber flooring, air-conditioning to the living room and kitchen, dated kitchen and bathrooms and a wet bar. The property was purchased at auction by a local buyer.

Taking your change from the Carrara purchase, you can head in to Surfers Paradise and for $200,000, Unit 19/25 Darrambal Street, Chevron Island (Surfers Paradise) will give you a 42 square metre unit on the top floor of a walk-up complex. The unit was built in 1995 and is in original condition, located west of the Gold Coast Highway but within walking distance of the beach and local restaurants, cafes and shops.

 Southern Gold Coast

With a budget of $700,000, the best opportunities in the southern Gold Coast region are in areas such as Miami or Burleigh Waters. For your money, you could get a two- or three-bedroom duplex or townhouse in either of these suburbs. Both these areas and properties offer a good opportunity to purchase a relatively good sized property at the entry level price for the suburb.

Either an original three-bedroom or a renovated two-bedroom duplex or townhouse unit is achievable within the price bracket and can provide good investment returns.

The buyer profile for this area is generally couples purchasing their first investment or first property for renovation. The rental returns in the current market have significantly dropped from talking to local property managers but they are all confident there will be a rebound in the next six months.

If you were looking to purchase multiple properties or achieve a good return, any purchase close to Bond University will ensure strong rental returns and if you have $700,000 to spend, there are opportunities to purchase two one-bedroom units around Varsity for about $300,000 each with rental returns of between $375 and 450 per week.

Covid 19 update:

To date, the impact of the pandemic on the southern regions of the Gold Coast hasn’t translated into a downturn either in property sales or prices. House prices remain firm, however some properties are staying on the market a little longer, although still transacting within a three-month period, with some properties as short as a few days. The rental market has been negatively impacted with heavy discounts being provided for new leases or pauses on current leases. This may see a downturn in future sale prices but this hasn’t been realised yet in sale prices currently being achieved.

Northern Gold Coast

The housing market within the Brisbane to Gold Coast growth corridor has stabilised in recent weeks due to the easing of the COVID-19 restrictions. Many agents have reported strong buyer enquiry and short marketing periods due to limited available stock. This limited stock seems to stem from hesitant vendors being unwilling to place their properties on the market in the uncertain economic climate.

While the recent upturn in buyer enquiry is encouraging, most agents have expressed concern over the economic outlook for the near future, in particular over the end of JobKeeper in September and the subsequent blowback effect on the property market.

The northern growth corridor between Coomera and Eaglebly and more recently between Upper Coomera and Flagstone contains a large amount of house and land developments catering to entry level first home buyers and investors in which it is possible to obtain two new house and land properties (more notably Yarrabilba and Flagstone) for $700,000. However, while price points for these areas have remained relatively steady over the COVID-19 pandemic, there is currently a high level of supply for house and land packages and history has warned us that this stock can have a high level of volatility during an economic downturn.

Freehold dwellings in more established areas such as Ormeau Hills, Nerang and Upper Coomera have held a much more stable level of enquiry and outlook due to the proximity to the Pacific Motorway, large block sizes and more limited stock. Upper Coomera in particular has seen a margin of growth in the past 24 months in which prices have otherwise been generally stable in nearby suburbs. $700,000 in this area would purchase a good quality, owner-occupier home that would provide a buyer more confidence in the uncertain times ahead.

Gold Coast West

The March 2020 quarter saw some market fluctuations within the Gold Coast M1 west residential precinct and within the Scenic Rim. The roll on effect of tight government restrictions brought reduced buyer demand across most urban market segments as well as limited stock levels, with sellers choosing to sit on their hands while they wait out the effects of the COVID-19 pandemic on the property market. On the other hand, there has been a noticeable increase in demand for rural lifestyle properties in recent months, especially in areas throughout the Scenic Rim, with local sales agents confirming that more buyers are looking for properties with larger land area due to a fast changing economic climate which is having impacts on people’s everyday lives. Beginning with the Gold Coast M1 West residential precinct, a $700,000 price point will offer buyers an established, generally good-sized modern home usually with a swimming pool in a suburb such as Pacific Pines, Maudsland or Oxenford. This price point has been a popular one, especially for families (owner-occupiers) looking for modern dwellings with accommodation of four bedrooms, two bathrooms, a double garage and most importantly being close to amenities such as local schools, parks, shopping centres and major transport routes. Properties at this price point in these localities continue to also be solid choices for investors, with rental amounts ranging from $650 to $750 per week for these types of dwellings and demand still high through these challenging times. We believe this sector of the market will remain stable moving into the second half of this year.

The market for $700,000 within the Scenic Rim precinct comprises mostly rural residential parcels with a mix of older Queenslander style, semi-modern and modern style dwellings. This market and price point had outperformed standard urban residential properties through the COVID-19 pandemic and continues to attract buyers looking for secluded living arrangements with many more people now opting to work from home. Generally, these properties tend to include a secondary accommodation, which is proving a great incentive for owner-occupiers with extended family members wanting to live close by but not under the same roof. Feedback from sales agents in the Scenic Rim area have been mostly positive with the main issue being not enough stock on the market to cope with the current high demand. A strong sale in February 2020 of a rural residential property was 2063 Beaudesert-Beenleigh Road, Tamborine, QLD 4270. This recently renovated, circa 1930s, high set, Queenslander style dwelling on an easy sloping, 1.52 hectares of land located on a main road between the Gold Coast and Logan at the southern end of Brisbane was a good result for the area with the sales agent confirming there was very good buyer enquiry throughout the marketing campaign with numerous separate offers. This property is currently being rented at $695 per week – a good rental return for the new investor.

Speak with a Gold Coast Mortgage Broker today.