Strongest buying up to $500,000 on the Gold Coast residential market following Commonwealth Games slowdown

Purchasing inquiry levels are up on the Gold Coast residential market following a slowdown during the Commonwealth Games.

Most agents have reported that buyer enquiry across the central areas of the Gold Coast has now improved to a steady level, according to the June report from valuation firm Herron Todd White.

Despite the volume of sales activity dropping over the past twelve months in most areas, it has been reported that some suburbs are still performing quite well, particularly within the Varsity Lakes and Mermaid Waters areas.

The report attributes, the positive levels of buyer enquiry in these suburbs to a shortage of good quality stock in central areas and asking prices being more affordable in comparison to neighboring suburbs.

Agents who specialise in the Surfers Paradise and Broadbeach areas have noted that they are still receiving steady levels of enquiry for listed stock, particularly up to $500,000.

"A good slice of their enquiries are buyers from south of the border (New South Wales and Victoria) which demonstrates that interstate investors still see good value for money opportunities in this market segment", the report noted. 

"However, it is becoming more apparent that agents are finding it tougher to get a quick sale for unit stock priced between $500,000 and $1.5 million."

There are many new medium to high rise developments under construction between Mermaid Beach and Surfers Paradise currently.

This may create a huge oversupply in the near future.

The report notes that, there has been mixed feedback in relation to how the waterfront home market has performed in the past month.

Broadbeach Waters, which has been one of the more sought after suburbs in recent years, still appears to be one of the better performing locations.

Entry level waterfront property (priced between $800,000 and $1.1 million) is still moving rather quickly.

"Selling waterfront properties priced above $1.5 million is becoming far more challenging for some agents", stated the valuers at HTW

"More recently we have noticed a significant decrease in sales volumes and market activity, particularly in Clear Island Waters and Benowa in this segment of the market."

The valuers forecast the second half of 2018 will remain stable, with sales volumes not expected to increase any time soon, steady levels of demand and a lack of listed stock will likely continue in most central suburbs.