Gold Coast property remains buoyant

Despite a drop in population growth, the Gold Coast’s property market continues to prosper, according to the latest research from real estate firm Colliers.

After jumping 23% over the past decade, the research shows a downward revision in the population projection compared to previous figures.

Colliers says the Gold Coast won’t reach the previously expected target of more than one million people by 2041, instead reaching 915,611 by then.

However, the latest Colliers Gold Coast Market Overview for the September quarter shows this doesn’t seem to be impacting the property sector, said Colliers’ Gold Coast director-in-charge Steven King (pictured above left).

“We have to put this into perspective as the Gold Coast is a maturing city with a maturing property market that will continue to be driven by its position as one of the fastest growing regions in Australia,” King said.

He said the Gold Coast’s population currently stood at 647,824, driven by a growth rate that had exceeded the 17% Queensland average over the past 10 years.

 King said the recent downgraded population projections could be considered a positive for the Gold Coast.

“On the one hand it gives the city’s property market a breather to catch up but, on the other, the scale of future population projections indicates demand for housing is not going to fall off a cliff in the medium to longer term,” he said.

 Informed investors returning to the Gold Coast market

According to Mortgage Choice Gold Coast-based franchise owner Deslie Taylor (pictured above right), who has featured on MPA’s Top 100 list several times, investors have been returning to the Gold Coast market but were getting independent financial and taxation advice before buying.

“This advice enables them to make informed decisions regarding the structure and purchase avenue i.e., through self-managed super funds or personally,” Taylor said.

“The rate [changes] haven't affected many of our clients who are investors, due to the fact the higher rates are beneficial for some investors compared to other investors relying on lower rates to grow their portfolio. 

“The higher rates we see now traditionally result in the investor market softening therefore we do forecast that these higher rates will begin to affect investors who relied on lower rates to support their investment portfolio.”

When it comes to mum and dad investors, Taylor said they were largely holding on to their investments.

Clients working with brokers to reduce cost of living outgoings

“We haven't seen any clients selling with the fear of being unable to support the investment portfolio, however, we are now having conversations regarding reducing outgoings to ensure their cashflow isn't heavily affected with the rate rises we have seen.”

Taylor said most clients were financially aware of changes that needed to be made to retain their financial commitments.

She said most of her clients were looking to purchase houses, townhouses or duplexes as opposed to units.

“Most of the clients we work with still feel houses, townhouses and duplexes have a better ongoing resale if the market softens.”

In these challenging financial times, Taylor said clients weren’t afraid to change lenders if their current lender couldn’t meet their requirements, with variable rates in higher demand than fixed rates.

She said her team also worked with clients to review their spending to reduce their cost of living including assessing what they spent on things such as eating out, takeaway coffees, alcohol, and gambling.

The Ormeau-Oxenford region to account for a lot of the future growth

According to the Colliers Market Overview, the Gold Coast’s Ormeau-Oxenford region will absorb most of the future population growth by accommodating an additional 103,000 people between 2021 and 2041.

“This growth will be primarily driven by areas such as Coomera, Helensvale and Hope Island, which are anticipated to experience the highest growth in terms of population,” the report said.

Gold Coast North is expected to accommodate an extra 35,000 people over the same period, with Labrador and Biggera Waters playing a significant role in this population growth.

King said the Gold Coast would continue to draw significant interest from investors with property having retained its appeal due to the limited supply, strong tenant demand and escalating rental rates.

A substantial amount of the region’s population growth was due to interstate migration, particularly from cities such as Sydney and Melbourne. He said the number of infrastructure projects planned for the region was a drawcard for people looking to buy property there.

“With an impressive pipeline of projects and substantial investments in infrastructure, including the anticipated benefits of hosting events during the 2032 Olympics, this region is poised for continued growth that can only intensify as the population heads closer to the million-people mark,” King said.

“The expansion of road and transport networks, along with the development of a high-frequency light rail system connecting the rapidly growing northern suburbs to Coolangatta in the south, will not only bolster public transit options but also make investing in the Gold Coast an even more attractive proposition.”