The Gold Coast is bracing for a swell of new property developments with more than $20 billion worth of residential projects earmarked for the tourist mecca. There are 104 towers proposed for the Gold Coast, which will deliver 20,000 more units to the market. Unit sales have risen 97%, according to Urbis, which says there were only 624 units on the market at the start of July – the smallest number since 2014. Urbis senior consultant Lynda Campbell says things are changing quickly with more large-scale projects coming on line. She says the focus in the past two years was on boutique-style developments. “There has been a real pent-up demand for the Gold Coast’s real estate product and once the international and interstate borders reopen there will be another wave which I think will go for these larger-scale projects,” she says. She says some projects announced during the June Quarter are already fully sold out
Investors Target Brisbane/Qld
Property prices may be on the increase, but most investors still believe now is the time to buy, with Brisbane and Queensland in their sights. The 2021 PIPA Annual Investor Sentiment Survey found nearly 62% of investors think it is a good time to buy, down from 67% in 2020. Around 58% of respondents say Queensland offers the best investment prospects – up from 36% last year. About a fifth say they have considered moving to a different location as a result of pandemic, with a quarter no longer wanting to live in a crowded city and seeking somewhere with fewer virus cases and lockdowns. PIPA Chairman Peter Koulizos says 76% of the 800 respondents believe property prices will increase over the next year. “When we think back to last year, which was a time of much fear and uncertainty, it’s clear that property investors and the market in general has weathered that turbulent period better than anyone dared to hope,” he says.
Quote of the Week
“When we think back to last year, which was a time of much fear and uncertainty, it’s clear that property investors and the market in general has weathered that turbulent period better than anyone dared to hope.”
PIPA Chairman Peter Koulizos
Home Sales Highest Since 2004
The number of properties selling throughout Australia has hit its highest level in 17 years. CoreLogic data shows 598,000 houses and units sold in the 12 months to August, a 42% annual increase and the highest number of sales since 2004. Western Australia recorded the biggest jump, up 62% to 63,804 sales. The Northern Territory and Queensland were also strong performers with transactions up by 58% (to 3242 sales) and 54% (to 146,687 sales) respectively. NSW transactions are up 38.9% to 191,090 sales, South Australia is up by 39% to 39,774 sales and Victoria is up 34% to 129,933 sales. Transactions in the ACT increased by 27% resulting in 11,085 sales and Tasmania’s transaction levels lifted 11% to 12,223 sales. CoreLogic’s head of research Tim Lawless says: “Such a significant surge in housing demand may seem surprising at a time when overseas migration has stalled, however the substantial rise can be explained by a lift in domestic demand from previously low levels”
Growth The Fastest In 18yrs
Australian house prices have hit a record quarterly increase as transaction levels continue to rise across Australia. The latest ABS figures suggest house prices increased 6.7% in the June Quarter, which was the fastest pace of quarterly growth in 18 years. ABS head of price statistics Michelle Marquardt says persistently low levels of stock on the market and strong demand is driving prices up. The total value of Australia’s 10.7 million residential dwellings increased by $596.4 billion to $8.9 trillion in the June Quarter – the largest quarterly rise since ABS began the series in 2003. CoreLogic figures reveal house prices nationally increased 18.4% in the 12 months to August. RBA assistant governor for economics Luci Ellis told the Federal Government Inquiry into housing affordability that a lack of supply was driving up prices. “You don’t increase affordability by giving people more money to spend on housing,” Ellis says. “All that does is bid up prices”
