Known for its warm weather, world-class white-sand beaches and pristine hinterland, it’s no wonder the Gold Coast draws in over one million tourists a year, and why half a million of Australians call it home. It’s also a hot spot for investors, who are driven to the city for the lifestyle.
“I have noticed the most common feedback is the “value for money”. The lifestyle on offer is simply unmatchable, with world-class beaches, surf, theme parks, shopping, nightlife and hinterland, it has been attracting Australian and international families for many decades,” James Drake, an agent with Queensland Sotheby’s International Realty – Gold Coast told Williams Media.
Sales Agent, Eddie Wardale agrees. “Lifestyle and value for money are always going to drive the Gold Coast market. Lots of our clients sell properties in capital cities for $3-$5 million and can purchase a luxury apartment or a modern Gold Coast mansion on the water for significantly less and bank the balance of money.” He says a good chunk of buyers are interstate investors.
“They’re purchasing properties for holiday homes or for their future place of residence for retirement. The majority of our investors are purchasing luxury apartments or waterfront homes.” But he says foreign investors have dropped off recently.
“The number of foreign investors for prestige properties on the Gold Coast has significantly declined over the last 18 months, especially the Chinese who have strong restrictions imposed on the transfer of funds overseas, and the difficulty to borrow money in Australia”
Effects of royal commission ‘hardly felt’ in prestige end of the market. Mr Wardale says the results of the royal commission have hardly been felt in the top end of the market. “The royal commission has not affected the prestige market buyers as much as other price segments such as first home buyers because the vast majority of our prestige buyers are paying cash for their property and not dependent on banks or lenders.
“We feel that today’s buyers are a lot more conservative and buy within their means rather than overextending themselves with bank debt.
“A lot of buyers quickly refer to the peak of the market in 2007-2008 and remember how quickly the market changed and remember how much property prices dropped and for this reason we see buyers of prestige properties acting a lot more reasonably.”
The upcoming election has sparked talk among some of his clients. “No doubt this will only increase as we get closer to the federal election.” Mr Drake believes the investment market is likely to heat up as the election draws closer.
“In my opinion, the investors market will see an increase leading into the upcoming election due to the potential changes in negative gearing. Smart investors have been capitalising now before any changes are made.”
Prestige market still transacting well.
“The buyers I am currently dealing with in the prestige market are still making offers on property. My only concern is the lack of urgency and a fear of missing out. “But despite this, we have still seen some great results on the Gold Coast. Sales over $10 million are transacting well,” Mr Drake said.
Mr Wardale says well-priced properties with motivated sellers are still transacting, but that concerns over the Sydney and Melbourne markets are impacting buyers.
“The high-end prestige market like all other segments of the market has slowed and is now more price sensitive than last year.
“Buyers are becoming more concerned about the changing markets in Sydney and Melbourne and are starting to fear that the local market will also follow suit,” Mr Wardale said.
Read the original article here, as published on www.therealestateconversation.com.au