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Lifestyle, lifestyle, lifestyle … it’s what the Gold Coast is all about.

And it continues to draw people to the area, showing annual population growth consistently running above 2 per cent over recent years, despite the repercussions of COVID-19, according to RiskWise Property Research.

RiskWise CEO Doron Peleg said this regional area enjoyed strong suburb fundamentals, with suburbs such as Palm Beach, Mermaid Beach and Miami, offering excellent beach access, popular shopping options and easy accessibility to the tranquil surroundings.

They also deliver accessibility to employment hubs and reasonable housing affordability.

Pete, Wargent, co-founder of Buyers Buyers, a national marketplace offering affordable buyer’s agency services to all Australians, said that Gold Coast is also a drawcard for retirees thanks to its beautiful beachside and waterside suburbs, unrivalled lifestyle, and good infrastructure.

“An hour’s drive from the state capital Brisbane, Australia’s sixth largest city appeals to active mature-aged people, who can enjoy walking on the beach or in the bush, fishing, boating and cultural pursuits with an appealing climate year-round" Mr Wargent said.

In addition, Mr Peleg said COVID-19 had helped strengthen ‘work from home’ opportunities meaning owner-occupiers could take advantage of ‘lifestyle’ prospects instead of being tied to employment hubs.

“Those who work in a stable corporate environment, but do so remotely, are now taking advantage of great buying opportunities in NSW, southeast Queensland and Victoria,” he said.

 

“Before COVID-19 hit, there was already a strong trend of sea- and tree-change homebuyers looking for the best of all worlds – lifestyle, accessibility to employment hubs and affordable housing.

 

“Homebuyers with long-term holding strategies are well positioned to negotiate aggressively to purchase high-quality houses that usually enjoyed strong demand.

“While there was definitely uncertainty during the first wave of the pandemic, the second wave shows us quite clearly these new work practices are here to say most likely until end of 2020 and well into 2021,” he said.

 

“Therefore, the demand for regional areas, such as the Gold Coast, offering great lifestyle choices is likely to further increase among those with stable incomes and they can expect good capital growth over the next few years.”

 

The median house price on the Gold Coast is $711,000 with capital growth over the past five years of 26 per cent. Its limited supply of available land for housing developments is increasing demand for existing properties meaning house prices will likely continue to increase.

 

Mr Wargent of Buyers Buyers noted that there are also several additional incentives that put home buyers and especially first home buyers in an enviable position.

 

These include federal government programs such as the First Home Loan Deposit Scheme whereby a deposit of just a 5 per cent deposit can be used to enter the property market, with reduced Lenders Mortgage Insurance (LMI), as well as stamp duty exemptions.

 

“Lower interest rates also materially improve housing affordability in terms of serviceability ratio, i.e. the monthly repayments for any price point are simply lower,” Mr Peleg said.

 

“What this all means is now is the time to buy if you are a first home buyer or an owner-occupier as this current slowdown in the property market is only temporary, with houses in popular areas likely to experience solid capital growth in the medium to long term.

“Once the COVID-19 issue is resolved, most likely in 2021, the traditional connection between low interest rates and increase in dwelling prices is likely to take place.”

“All this means is that house price growth is likely to remain strong due to the growing demand for existing affordable dwelling options and the desire to live in established coastal areas with an unrivalled lifestyle and good infrastructure.”

However, he stressed that investors buying rental apartments unsuitable for families were taking a gamble, with both equity and cash flow risk expected to materially increase. Serviceability is also a major factor for investors who rely on a stable rental income to cover the costs associated with property and particularly the mortgage.

“Our research shows that more than 11,000 new units may be added to the Gold Coast property market over the next 24 months, the equivalent of about 9 per cent of the existing stock. Vacancy rates are also on the rise thanks to COVID-19 and the fallout from the construction defects highlighted last year and are currently sitting at 3.8 per cent according to SQM Research.”

For all media enquiries, contact Buyers Buyers Media Manager Tatiana Marchant on 0410 655020 or email tatiana@buyersbuyers.com.au

 

Visit www.buyersbuyers.com.au/weintelligence

ENDS

About Buyers Buyers

 

Buyers Buyers is a national marketplace offering affordable buyer’s agency services to all Australians. Our ‘best in class’ nationwide panel of expert agents gives every Aussie a fair go in the housing market by reducing time, cost and stress through the property buying process. All data referred to is sourced and verified by independent research house Riskwise Property.