As expected the market in January was a little slow given all the holiday periods and this resulted in significantly fewer sales and buyer inspections. The market certainly has been very active over the last twelve months yet the pundits are predicting a slower 2015 despite continuing low interest rates.
As the Tweed, Coolangatta, and Banora Point areas all fall within the Gold Coast economic region I thought the following commentary would be of interest to you.
Ten things you need to know about the Gold Coast.
1. Sales volumes across all residential products; detached dwellings, attached dwellings & land sales on the Gold Coast, continue to accelerate. There were close to 20,000 residential sales on the Gold Coast last year.
2. End residential values have continued to lift across Gold Coast City. This typifies a market in the recovery housing phase. Some big movements in price are likely.
3. The average house on the Gold Coast now costs $505,000. Vacant land averages around $238,000 per allotment and resale apartments, again on average, cost about $362,000.
4. Weekly rents have risen quite quickly over the last couple of years. The last 12 months have displayed the largest growth. As a result, for many local residents, renting now is getting expensive on the Gold Coast. Less rental growth is expected during 2015 when compared with what happened during 2014.
5. New housing starts are increasing – which, again, is typical of a market entering recovery – yet the vacancy rate remains tight & resale stock for sale continues to fall.
6. There are about 10,000 residential properties for resale on the Gold Coast at present, which equates to about a seven (7) month supply. Despite the tight rental supply, we expect prices to rise (more so than rents) during 2015.
7. The level of total employment is improving on the Gold Coast, with about 13,500 new jobs being created over the last twelve months alone. A sustained increase in local employment would help accelerate the strength of Gold Coast City’s residential recovery. Better still would be a lift in the median household wage.
8. About 550,000 people permanently reside on the Gold Coast. The Gold Coast is currently growing by about 11,000 new residents each year.
9. When factoring in various local issues such as affordability; potential property returns & current market trends, there is a need to build more townhouses/villas on the Gold Coast; followed then by detached product; small lot homes and small-scale infill apartments.
10. At present, local unemployment remains steady at just under 6%. Government projections suggest that 32,000 new jobs (an 11.7% increase) are likely to be created on the Gold Coast over the next five years.
If you wish to discuss your property needs, if you are thinking of selling contact our office as soon as possible as we have a shortage of listings following a highly successful year of sales