Purchasing activity keeps steady in Gold Coast North West property market: HTW residential

Purchasing activity keeps steady in Gold Coast North West property market: HTW residential
Purchasing activity keeps steady in Gold Coast North West property market: HTW residential

The market throughout Gold Coast North West, Scenic Rim and Lower Logan region covers a wide range, from older housing to brand new estates, according to a recent Urban Land Development residential report. 

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.

The report suggests investors traditionally forming a large proportion of purchasers in this region across all categories.

"The record low interest rates have influenced buyers in this region, keeping purchasing activity steady. Record low rates inevitably correlates to higher debt levels as money gets cheaper," the valuation firm said. 

Some home owners have been unable to sustain payments at the higher debt levels and as a result, there have been more mortgagee in possession sales occurring in recent months.

Price point has always been the big lure to investors in this region with Sydney and Melbourne buyers able to buy several houses here for the same price as only one in their home towns, the report noted. 

A current offering in the Scenic Rim Region's Beaudesert is a three bedroom house priced at over $299,000.

The three bedroom, one bathroom house is situated at 5 James Street (pictured below).

It features modern kitchen, air-conditioned living area, undercover deck and garden shed.

Purchasing activity keeps steady in Gold Coast North West property market: HTW residential  

"Rental returns have always been top of the list of attributes for interstate buyers with many older style properties achieving rental returns that are positively geared or very close to it. We have also seen a large rise in the dual occupancy market in new housing estates," the valuation firm said. 

Buyers can build a dual occupancy dwelling on a site larger than 400 square metres with most construction and land packages costing between $500,000 and $560,000 and achieving between $630 and $680 per week rent.

"When combining the calculation of these returns with the benefit to the investor in potential capital gains, they become quite an attractive offer.

"We are also seeing an oversupply of townhouses and low rise units in and around Beenleigh with new products seeing very large discounts on resale and some developers advising that it is difficult to build product and maintain profit." 

A Beenleigh two bedroom Unit within a small secure complex has recently been sold for $255,000.

The property at 7/35 Solar Street (pictured below) was last sold in 2008 for $250,000.

It comprises two bedrooms, two bathrooms, open plan living and outdoor entertainment area. 

Purchasing activity keeps steady in Gold Coast North West property market: HTW residential

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.
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