Plenty to buy on the Gold Coast for under $300,000 but not much on the Sunshine Coast: Herron Todd White
The Gold Coast property market presents a myriad opportunities for those seeking an investment under $300,000, according to Herron Todd White’s September month in review report.
According to HTW’s Gold Coast valuation team, about 20% of properties currently being sold on the Gold Coast are priced under $300,000, but there is not much for that price on the more expensive Sunshine Coast.
“Provided buyers are not greedy in their house wants or are able to live comfortably in a unit, there is a myriad of options available for purchasers wishing to spend under $300,000,” says HTW’s Gold Coast office.
Looking at the unit market, HTW says there are plenty of sub-$300,000 options in Surfers Paradise, including older-style units starting in the low $100,000s and one-bedroom, one-bathroom units in modern high rises from $250,000 to $320,000.
A recent sale in this price range was a 7th floor one-bedroom apartment plus study with two bathrooms in Wings Residential on the Gold Coast Highway, built around 2004, which sold on June 28, 2012, for $250,000.
Another one-bedroom unit at Wings (pictured below) on the fourth floor that measures 90 square metres is currently listed for sale by Raine & Horne Surfers Paradise John Monteith, “very keenly priced” at $309,000.
Other recent sales around the $300,000 mark include Unit 43 in Diamond Beach South in Mermaid Beach, a two-bedroom semi-modern unit in a three-storey walk-up, and a 1994 two-bedroom low-rise unit measuring 105 square metres.
The report suggests that sections of the Gold Coast apartment market are still very much a basket case, with HTW valuers highlighting Southport CBD medium-/high-rise developments, which have recorded severe drops in value over the past couple of years due to distressed sales and rising body corporate rates.
“While values are still slowly softening, the rental market has remained relatively stable."
According to HTW, a notable sale at the $300,000 price point was 715/2 Aqua Street, Southport – a 2009, two-bedroom medium-rise unit with single car basement car space measuring 84 square metres within the Meriton development Brighton on Broadwater (pictured below).
Originally sold by the developer for $350,000 in 2009, the apartment sold in July 2011 for $300,000 and most recently sold for $286,250 in April this year.
HTW notes that the best buys generally remain stressed sales, “which are still dominating the lower end of the valuation echelon".
“The market has continued to soften into 2012, with recent indications that the market is starting to stabilise.
“Properties in this price bracket represent the highest sales rates currently on the Gold Coast but many are in fringe rather than central locations. Generally speaking the properties selling circa $300,000 are untidy and usually in need of at least some cosmetic improvement (around $10,000 to $20,000 cost) to lift their overall presentation and marketability.”
In the case of the Sunshine Coast, HTW valuers say $300,000 does give buyers some good options, but options and “bang for your buck” increase if buyers are willing to increase your spending to the low $300,000s.
“Along the coast options are largely restricted to units.
“In the main tourist areas of Mooloolaba/Caloundra and in some cases Noosa, you can purchase two- bedroom units for between $250,000 and $300,000.
In January, Graham Smith from Richardson & Wrench Noosa Heads sold a two-bedroom unit in South Pacific Resort, 179 Weyba Road (pictured below), for under $285,000 in a distressed sale.
According to RP Data, the median unit price in Noosaville is $437,500.
For those looking to buy a house around this price range, HTW says spending in the low $300,000 would buy into areas like Battery Hill, Mount Coolum and possibly Tewantin.
Currently listed for sale is a three-bedroom house being sold by Caloundra City Realty with an asking price of $319,000.
“As you move into the hinterland there is defiantly more options. The main service centre of Nambour provides a range of services and employment, with both older and reasonably modern homes selling sub-$300,000,” says HTW.
“As we move to the railway townships the options continue.
“The key with any purchase is to keep your eye on the market. There are some great buys out there with pressured vendors being forced to sell, often at well below replacement costs. Calling agents, going to auctions and seeking good independent advice are all relevant tips to ensure that you don’t miss an opportunity,” says HTW.
Buying opportunities for under $300,000 was the theme of the residential aspect of this month’s report following Herron Todd White August report on how to spend a “lazy $500,000”.
The switch to look at a more entry-level price barometer follows a “tastefully worded email” from a reader suggesting to HTW valuers that $500,000 was a bit too much to squander and they should “try and see things from a more reasonable perspective”.
