Gold Coast fringe suburbs are value for money: HTW
Gold Coast is approaching the peak of market for both houses and units in valuation firm Herron Todd White's April 2016 property clock, a simple broad brush means to indicate where property markets are and the direction they're headed in.
Fringe areas on the Gold Coast can generally describe localities west of the M1 Pacific Motorway, north of the Coomera River and south of the Tweed River. This encompasses small lot residential and master planned housing communities, acreage, rural lifestyle and farming areas. On the Gold Coast the diversity of property can be quite extreme within a relatively short distance.
West of the M1 Pacific Motorway are the areas such as Mudgeeraba, Worongary, Highland Park, Gilston, Nerang and Gaven. All these localities have experienced a varying degree of price growth over the past 18 months with detached dwellings being the predominant type of housing in this area.
At present there are vast opportunities to purchase a detached house within a reasonably affordable price range ($350,000 to $550,000) and which could potentially offer a solid rental return.
Some examples of properties which have recently sold in the more established fringe areas are as follows:
18 Equinox Court, Mudgeeraba sold in January 2016 for $445,000.
This property comprises a circa 1980, partly refurbished, semi-modern style, single storey, rendered brick, three-bedroom, two-bathroom, dwelling, with concrete tiled roof and one uncovered car space. The living areas are approximately 129 square metres and has an outdoor area of approximately 38 square metres.
The dwelling is located on an easy sloping, regular shaped, inside block situated above road level with some local and mountain views. Outdoor improvements are of an average standard and include established landscaping; garden shed, and retaining walls. The property has a good presentation with a land area of 880 square metres. Sale price apportioned as follows: Land – $275,000; Improvements – $170,000. It is located within a quiet residential street and is also within close proximity to Mudgeeraba township. This property was sold by PRD Nationwide in the first week that it was listed on the market and sold prior to the commencement of internet advertising.
The current asking rental prices within Mudgeeraba typically range between $450 and $500 per week for a residence similar to the above mentioned property.
7 Sue Ct, Highland Park sold in January 2016 for $410,000.
This residential property comprises a circa 1987, semi-modern style, single storey, three-bedroom, one-bathroom, brick dwelling with concrete tiled roof and one car garage. The living areas are approximately 106 square metres. The dwelling has been fully renovated internally and is located on an easy sloping, slightly irregular shaped, inside lot situated above road level. The outdoor improvements include shade sail, moderate landscaping and garden shed. The dwelling presents in a fair condition, with modern PC items of average quality. The property has good access to the M1 Pacific Motorway. The land area is 697 square metres and the sale price has been apportioned as; land value – $250,000; improvements value – $160,000.
The current asking rental prices within Highland Park typically range between $400 and $450 per week for a residence similar to the above mentioned property.
3 Mango Ct, Nerang sold in January 2016 for $418,756.
The property comprises a circa 1980, semi-modern style, single storey, three-bedroom, one-bathroom, brick dwelling with concrete tiled roof and 1-car attached carport. The living areas are approximately 125 square with the outdoor area 33 square metres approximately. The dwelling is located on a
moderately sloping, irregular shaped, inside lot situated at road level. The property has no signi cant views with outdoor improvements including moderate landscaping, lawn locker of 6 square metres and solar panels. The property has a fair presentation with a land area of 712 square metres.
The current asking rental prices within Nerang typically range between $390 and $440 per week for a residence similar to the above mentioned property.
If you are seeking a relatively cheap property investment in the fringe ‘central’ areas like Mudgeeraba, Nerang and Highland Park and are looking for rapid short term capital growth you’ve probably missed the boat! With the market now starting to stabilise, investors are better off taking a long-term perspective.
Traditionally, rental demand for houses in these areas has rarely been volatile. We suggest that if you are looking to buy here and looking to rent the property for ten plus years then these suburbs are a safe bet.
Mudgeeraba is our pick if you are an owner-occupier or investor looking for a detached house under $500,000 west of the M1 Pacific Highway. This suburb offers a good array of schools and shops and Robina Town Centre is a short five to 10 minute drive from the township.
While price levels appeared to have already strengthened in this suburb over the past 12 months, there are still opportunities in this price bracket which would also make good long term investment. You will have to keep a close eye out though if you want grab a bargain buy as agents have reported a shortage in stock levels over the past six months.
To the north-west, two affordable residential fringe suburbs are considered to be Maudsland and Tamborine Mountain. Both suburbs are popular with owner-occupiers and investors and have differing demographics. Prices have strengthened post GFC and are presently stable in the $300,000 to $550,000 price point with a good range of predominantly modern (post 2000 built) duplexes and houses available.
There is a limited supply of duplexes in Maudsland with price points being around $330,000 to 375,000 with rental returns being ($340 to $375 per week) depending on size and condition.
Dwellings in Maudsland are selling in the $400,000 to $550,000 price points with those at the higher end generally being updated and comprising 4- or 5-bedrooms, 2-bathrooms, double garages and swimming pools. Rentals in for these properties generally range between $410 and $600 per week. Local agents report strong demand for sale and rental properties. This area is underpinned by increasing amenity, proximity to transport and the M1 Paci c Highway.
Dwellings in Tamborine Mountain are selling in the $320,000 to $550,000 price range. Properties in the lower price points tend be located toward the northern side (off the mountain), generally comprising 2- to 3-bedrooms, one bathroom and off street car parking. Site contours can vary greatly. Rentals for these (lower price point) properties generally range between $350 and $420 per week.
Properties between $425,000 and $550,000 are generally more centrally positioned on Tamborine Mountain enjoying 3- to 5-bedrooms, 2-bathrooms, double garage and more favourable topography or views. Higher price point properties tend to rent between $450 and $650 per week.
Maudsland would have to be the pick to be the better performer over the long term. Local agents report a lack of listings in the competitive sub-$600,000 market segments and a large number of potential purchasers. It is expected that infrastructure and amenities within this area will continue to improve hence driving demand. Tamborine Mountain will continue to be more of a lifestyle location where properties tend to be purchased for the longer term.
Further north of the Coomera River are Pimpama and Ormeau. Both suburbs have experienced varying growth over the past couple of years with project-style detached dwellings and duplex units being the predominant type of housing in these areas.
The new developing residential estates are predominantly driven by investors with majority of new properties being purchased by local, interstate and overseas buyers. The established modern (post-2000) residential estates in both suburbs are popular with owner-occupiers and investors and have different demographics. Prices have improved over the past one to two years and are stable in the $400,000 to $550,000 price range for detached dwellings and $325,000 to $400,000 for duplex units.
Local real estate agents who actively market land and housing in both suburbs advise of generally good market conditions currently prevailing for vacant lots and housing priced below $550,000. They further report that generally the market for this type of property has improved over the past
12 months, with low stock levels currently available and sale prices showing steady growth over this period.
Local real estate agents who actively market duplex units in both suburbs advise of generally good market conditions currently prevailing for units priced below $400,000. Importantly, the rming in the established housing market has had the effect of increasing the demand for duplex units, particularly for rst home buyers who are being increasingly priced out of the detached housing markets. There are predominantly more duplex units available in Pimpama and limited supply in Ormeau.
Both suburbs are considered good value for money and have been steady over the past few years.
Rentals for detached housing in both suburbs generally range between $410 to $550 per week depending on size and condition. Local agents report strong demand for rental properties in both areas. Properties that have been recently completed, refurbished or have swimming pools generally achieve the upper end of market rent. Accommodation is typically 3- or 4-bedrooms, 2-bathrooms and double garages. In these areas duplex units weekly rent generally range between $320 to $400 and accommodation typically comprises 3-bedrooms, 2-bathrooms and a single or double garage.
Our pick is both Ormeau and Pimpama to be sustained performers in the northern growth corridor, supported by surrounding developments and infrastructure increasing amenities, proximity to transport, shopping centres and the M1 Pacific Highway. Furthermore, investors still view these areas as good value for money compared to the Sydney and Melbourne fringe development areas.