The Gold Coast may have become the ideal property buyer’s market as a crash which brought prices down by up to 50 per cent in recent years shows signs of bottoming out.
Louis Christopher, SQM Research’s managing director of data, told the International Business Times that while the property situation in the Gold Coast is a crash “in its truest sense,” a number of emphatic signs have emerged that the market is on the verge of a rebound.
Gold Coast property prices have fallen by up to 50 per cent since 2010, with only a slight uptick in the past through June of 0.8 per cent, which was nonetheless meager compared to the average 3.8 per cent increase seen by other major cities in Australia.
The median apartment price on the storied Queensland holiday strip remains up to a third below those in cities to the south, at $370,000 as of June 30 as compared to $491,845 in Sydney or $411,714 in Melbourne, according to figures from Australian Property Monitors.
John Newlands, a spokesperson for the Real Estate Institute of Queensland, says these low prices are now enticing an increasing number of bidders at auction. While a mere year ago open houses were often devoid of buyers, around three to five groups are now showing up to auction, with cheaper homes proving especially popular.
Tourist arrivals in Queensland have also increased sharply as a result of the weakening exchange rate, with figures from the state’s tourism agency indicating a 10 per cent increase during the period from April to August. The influx of domestic tourists will no doubt bring a bevy of potential property buyers looking to obtain a holiday home in the torrid north.
Record low variable home-loan rates, currently at their lowest point in four years as a result of the Reserve Bank of Australia’s reduction of the overnight cash rate to 2.25 per cent, will also serve to bolster purchases of cheap properties on the Gold Coast.