New Zealanders return to Gold Coast as dollar nears parity, says agent

New Zealanders return to Gold Coast as dollar nears parity, says agent
Jessie RichardsonDecember 7, 2020

Australia's falling dollar and the promise of a recovering market is drawing New Zealanders back to the Gold Coast, according to one agent.

Russell Barker, a licensee of First National Southport, tells Property Observer that the agency is seeing "very strong enquiries" through its New Zealand offices.

He believes the renewed enthusiasm is in part due to a general increase in foreign interest in the area on the back of the upcoming Commonwealth Games.

"It started about nine months ago," says Barker. After a flat market, stretching back to 2008, and negativity from Queensland's floods, he says new infrastructure built to support the 2018 games is attracting media coverage and buyer interest.

He notes an uptick in development in the area, which can accommodate foreign buyers who are only allowed to purchase new properties. But while much has been made of Chinese investment in the Gold Coast, he says the Chinese market only contributes to about 5% of sales.

Barker believes that New Zealanders aren't simply drawn to the Gold Coast because of the associated lifestyle, but because of investment opportunities.

"Apart from Auckland and Queenstown, there aren't really many places with strong capital growth in New Zealand," he explains.

With the earthquake's impact on the Christchurch market and few solid investment opportunities in Wellington, Barker says investors turn to the Australian market – and the falling Australian dollar, now worth NZ$1.03, is only increasing the appeal.

"When the market crashed, a lot of Australians were buying in America," he notes.

"And now with the dollar changing, we're seeing the reverse," with New Zealand and European buyers considering our market."

Barker says New Zealanders' interest in Australia will "only get stronger and stronger".

"They're really the extra state of Australia," he says. "We openly accept New Zealand, the same as they accept us."

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