Central Gold Coast foreign investor market slows: HTW residential

Central Gold Coast foreign investor market slows: HTW residential
Central Gold Coast foreign investor market slows: HTW residential

Most agents are reporting a softening in buyer enquiry and demand across the board throughout the Gold Coast, according to the latest Herron Todd White (HTW) residential report. 

All sectors are reporting some softening in value levels and longer sale periods required to achieve a sale, the valuation firm said. 

"It is definitely a buyer’s market and they are more discerning with their choices and in no rush to sign up to buy," the report stated. 

One leading agent has reported a general drop of circa 10% for Bundall and Sorrento from the generally accepted top of the market in late 2017.

According to the report, this was evidenced in a top end sale where the purchasers had submitted an offer at $4.5 million less than eight months ago and have just gone to contract at $4.1 million on the same property.

"The local market is well aware of the downward trend in the southern cousins of Melbourne and Sydney, however there appears to be a general consensus that local value levels here didn’t sky rocket like our southern counterparts and as such any market correction here is likely to be much more gradual and gentle in nature," the report said.

"The unit investment market in the beach side suburbs of Surfers, Broadbeach, Mermaid Beach and, to a lesser extent, Main Beach was negatively impacted by tighter bank lending restrictions, including the reduction of interest only loans and the banks’ requirements to convert to a principal and interest loan upon expiry of the interest only loan term.

"This resulted in serviceability issues for a number of investors and we saw this translate to vendors accepting contracts below previous sales within the building."

HTW said that the foreign investor market slowed as Chinese investors now seem to have disappeared from the market.

The prestige residential market up to circa $2 million was still ticking over albeit at a slower pace compared to standard residential housing within the central precincts.

A three bedroom Main Beach apartment which was traded at $2,462,000 in 2008 has recently been sold for $1,775,000.

The 278 square metre sky home at 2/20-24 Hughes Avenue (pictured below) comes with three bedrooms, living areas, large balcony and resort lap pools.

Central Gold Coast foreign investor market slows: HTW residential

Dry block or non-waterfront houses transacted steadily with some softening in price levels.

This market sector was mainly driven by local buyers.

A deceased cottage positioned in the Main Beach high-rise precinct has recently beed sold for $1.5 million.

Sit on a 531 square metre block, the cottage at 18 Hughes Avenue (pictured below) with redevelopment potential comes with two bedrooms, one bathroom and yards.  

Central Gold Coast foreign investor market slows: HTW residential

Moving slightly out of the central locality, a recent sale of a proposed vacant lot in Tallai (to be subdivided off an existing larger site) and comprising 4,238 square metres of near level vacant rural residential land sold to a local buyer for the asking price of $600,000.

The agent reported the buyer had been looking for circa 12 months and this fitted their needs.

Other vacant sites available for sale all had issues either with sloping contour, flood or in close proximity to high voltage power lines.

"This sale indicates that the market for good quality, well located vacant land is generating good buyer enquiry and strong prices," HTW said.

"This sale is one of many occurring on the Gold Coast where local purchasers are seeking specific properties and are willing to pay more for a property that satisfies their requirements."

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Htw Central Gold Coast

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