Brisbane and Gold Coast trending upwards
Although Brisbane and Gold Coast are two very different markets, they are both moving in the same direction – and that is upwards.
Colliers International’s research and forecast report for the second half of 2013 says sales rates are improving and general sentiment is positive. The new apartment market is definitely picking up the pace.
Lynda Campbell, manager research, says key factors all bode well for investors and owner-occupiers to take advantage of the affordable loans on offer.
She says residential vacancy rates are tightening which puts upward pressure on rents, interest rates are at their lowest level in decades, dwelling approvals are rising and the population is increasing.
And, the latest figures from the Australian Bureau of Statistics show housing finance for owner occupation and investment purposes are trending upwards.
‘’While the Gold Coast is just lifting off the bottom of the property cycle, Brisbane is well on its way with elevated sales rates throughout the year resulting in total sales for the 12 months to the end of September of 2,300,’’ Campbell said.
‘’Total sales on the Gold Coast for the same period are just over 700. Both markets are tracking above five-year-average figures, with Brisbane significantly above and Gold Coast just starting to gain traction.’’
Campbell said new projects recently launched in Brisbane are achieving strong sales rates while, on the Gold Coast, new projects are scarce. Going into 2014 this should change for the Gold Coast with several projects expected to be launched late this year and early 2014.
‘’Both Brisbane and the Gold Coast have a strong pipeline of future supply. With sentiment improving and key indicators positive, developers will start to move forward with projects that may have been on the back burner for several years,’’ she said.
‘’At the same time, projects which have been on the market for a number of years are starting to see an increase in sales rates and stock is being taken up at a faster rate than over the last few years.’’
Major infrastructure projects under way in both Brisbane and the Gold Coast will have a positive impact on residential markets. ‘’On the Gold Coast the $1.8 billion light rail project will create a corridor of transit oriented developments through the suburbs of Southport, Surfers Paradise and Broadbeach,’’ Campbell said.
‘’In Brisbane, the newly proposed underground rail and bus network, to cost $5 billion, will deliver a double-decked tunnel connecting Dutton Park in the south and Victoria Park in the north. These projects will see connectivity around both cities improve.’’