Antonia Mercorella of the Real Estate Institute of Queensland, Paul Arthur of Queensland Sotheby’s International Realty, Petra Szydlowski of Belle property Robina, and Tim Lawless of CoreLogic discuss the Gold Coast hinterland property market.
CoreLogic said there has been a surge in demand for properties located in coastal and hinterland ‘lifestyle’ regions and towns.
Tim Lawless, head of research at CoreLogic found a variety of factors have contributed to renewed demand for properties outside the cities.
A large part of it must be attributable to the ‘wealth effect’, where homeowners (particularly those in Sydney and Melbourne) have seen a substantial wealth boost via their property holdings. Couple this with a large cohort of baby boomers seeking out holiday homes or relocation options as they shift into retirement age, and the demand picture becomes more pronounced.
According to Tim Lawless, perhaps another element is the growing acceptance and popularity of ‘telecommuting’ thanks to faster internet speeds, wider employer acceptance of working from home and broader availability of technologies such as VPN, which provides a secure virtual office environment for staff working remotely.
A final piece of the puzzle comes back to housing prices and affordability. It’s often the case that hinterland properties will provide a lower entry point to the market relative to their coastal or big city counterparts, especially when you take into consideration that typical block sizes are much larger.
According to the Real Estate Institute of Queensland (REIQ), the annual median house price in June 2018 in Tallebudgera Valley was $1.08 million with a 30.9 per cent price change in the last year, and a 38 per cent price change in the last five years.
In Tamborine Mountain the annual median house price is $860,000, with a price change of 12.1 per cent in the last year, and 27,8 per cent in the last five years. Median age for residents in the GC Hinterland is around 45 – 50 years.
Antonia Mercorella, chief executive officer of the REIQ said the Gold Coast hinterland offers great value for money and buyers have access to good amounts of land, lots of space, and attractive properties.
“It’s a little bit further from the beach but there is good access to it. The GC hinterland has been a hidden secret, but people are now seeing the value of buying there,” Ms Mercorella told WILLIAMS MEDIA.
“It is often popular for empty nester’s looking for privacy and seclusion, and it’s equally going to be a great option for people with kids and young families as it gives you lots of land but is still close to beaches and good schools.”
Mr Mercorella said the Gold Coast market overall has been performing strongly for a few years.
“The recent Commonwealth games have had an impact on rental vacancy rates, and we’ve seen the Gold Coast market bounce back very strongly post GFC, faster than most property markets.”
Petra Szydlowski of Belle property Robina told Williams Media she has seen growth over the last few months. “We haven’t had the spring season start yet, there is a little bit of slowness around,” said Ms Szydlowski. “There is some uncertainty with the banking enquiry, and we’ve seen a few declines in finance applications.”
Mr Szydlowski said Tamborine Mountain is a very niche market, with a capped population of about 10,000. “With the council very anti development the mountain is holding its value more than anywhere else in region.
“Median prices have definitely gone up. There is very little stock available in the $400,000 – $600,000 value.
“There is an increase in spend from $600,000 – $800,000, and we have sold more $1 million plus properties over the last 12 months than anytime before that.”
Read the original article here as published on therealestatecoversation.com.au