FHB's priced out of Central Gold coast property market: Herron Todd White
First home buyers are typically priced out of the stand-alone housing market for the Gold Coast’s central localities within two kilometres of the beach, according to the latest report from valuation firm Herron Todd White.
“With a non-western front renovator in Mermaid Waters generally starting at around $700,000, this market appeals more to the second or third home buyer looking to secure a good position close to the beach and facilities,” the March report found.
“Typically in this suburb, house buyers are upgrading with some equity behind them or downsizing from a higher priced waterfront home, ditching the mortgage but still benefiting from the lifestyle amenity of the central location.
Currently prices are generally stable with purchasers either looking to renovate and flip for a quick profit as there is steady local demand for recently renovated, just move in, nothing to do type houses.
This is evidenced on the Isle of the Mill, a residential locality within the suburb of Surfers Paradise, with recent sales for non-waterfront properties at stronger price levels.
“This locality has benefited from gentrification in recent years with the local shopping centre, the Mill on Via Roma, being completely revamped and remodelled within the past few years and the tram line within walking distance,” the report said.
An example is 5 Saint Andrews Avenue, Isle of the Mill which transacted in August 2019 for $1.84 million to a local buyer.
Built in 2019, the dwelling is an architect-designed, contemporary, two-level, fourbedroom plus study or bedroom, four-bathroom dwelling with rendered masonry, fibro cement sheet walls, skillion metal roof and double car garage.
It features a high standard quality fit out, two-level void over the living room, catwalk hallway, polished timber flooring, timber bi-fold doors, ducted air conditioning, wine room, inground swimming pool and established landscaping. The land area is 539 square metres.
The site was previously sold with an older dwelling for $890,000 in March 2018.
First home buyers in these central localities are mainly confined to the unit market with agents reporting that affordability is the main driver. $400,000 is generally the price point cut off and body corporate fees are a significant factor.
“First home buyers are also competing with investors who also factor in likely achievable rental income with outgoings including body corporate fees,” according to the report.
“The first home buyer generally must look for a house in the more outlying suburbs such as Carrara where it’s possible to get a semi modern three bedroom duplex unit for circa $400,000. House prices start around the mid $400,000s for a three bedroom house,” the report said.
“Mudgeeraba has seen increased townhouse and unit development within recent years with product increasingly including four bedrooms or three bedrooms plus a study or bedroom which is appealing to investors and first home buyer families alike. Mudgeeraba, located west of the M1, is also a sought-after locale for first home buyers.”
It has its own local shopping centre, schools and is within close proximity to Robina Town Centre.
Entry level three-bedroom townhouses in Mudgeeraba start at around $315,000 for something built in the 1980s with a largely dated fit out. Modern, circa 2018 built two-level townhouses providing four bedrooms, two bathrooms plus powder room with a single garage and single open carport are around $490,000.