Gold Coast Central North property market sees dramatic decrease in demand for medium rise apartments: HTW residential

Staff reporterMay 24, 20200 min read

Most investors appear to be acutely aware of the current interest rate and predictions of it being on the decline, according to a recent Herron Todd White (HTW) residential report. 

The HTW report suggests this has put a positive slant on the Gold Coast Central North local market. Another positive is the general optimism in the national economy, however this is now very fluid due to the Coronavirus pandemic, with some local agents reporting a fall in enquiries.

The current COVID-19 epidemic is going to have a negative impact on key drivers, so it will be interesting to see what impact this may have on the property market in the short to medium term, the valuation firm said.

"A major factor on the Gold Coast is the perceived low values of properties compared to the capital cities such as Melbourne and Sydney and overseas markets," the valuation firm said. 

A major local influence on the Gold Coast has always been proximity to water, whether beach, broadwater, river, lake or canal.

Secondary location factors are proximity to the perceived better schools, commercial precincts and public transport corridors such as proximity to the new light rail or access to M1 motorway, the report noted. 

First home buyers are most influenced by budget and need for compromise. Many are buying small lowrise units in the older areas such as Southport or driven to the north-west corridor developing area. Upgraders are driven more by location (i.e. water locations).

A first floor apartment situated in the heart of Southport has recently been sold for $240,000. 

The 9/14 Rose Street home (pictured below) was last sold in 2013 for $299,000.

It comes with one bedroom, one bathroom, modern kitchen and outdoor balcony. 

Empty nesters are usually seeking smaller dwellings in locations with good proximity to health services and established commercial precincts.

"A major factor has been the oversupply of medium to high density housing such as modern medium rise apartments and townhouses. We have seen a dramatic decrease in demand for this type of property," the valuation firm said.

A three bedroom townhouse in Southport is currently on the market with a price guide of over $449,000.

The 15/2 Bronberg Court townhouse (pictured below) features large kitchen, lounge with ceiling fan, and undercover alfresco. 

It is located within easy access to public transport, schools, restaurants and shops. 

Note regards COVID-19
This edition of Month In Review had its topic defined in late February with submissions from our offices collated through to late March. During this period, shifts in the social and economic landscape due to COVID-19 became increasingly dramatic, as demonstrated by the varied information provided by offices over the course of three weeks.
This month’s residential theme on baseline property market drivers remains a common thread, and provides an indication of what influences to monitor as the property sector recovers post-crisis.

Staff reporter

Gold Coast
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