Gold Coast land to double in price within five years
The Gold Coast’s GFC ‘hangover’ is over!
The city is now considered one of the country’s leading hotspots and best places to invest!
According to leading property industry figures; Richard Duce (acquisition manager for Leda Holdings) and the Chairman of the REIQ Gold Coast, John Newlands, available land in the Gold Coast is drying up and within five years it will be difficult to buy a residential block for under $500,000.
$2,000 per month price growth
Mr Duce points out that the price of a residential block has been increasing by $2,000 a month for the past two years.
In total there are only 11,800 developable blocks remaining in the entire Gold Coast and within five years these will be gone.
The remainder of Gold Coast land is either swamp land or below the flood line and unable to be developed.
This scarcity of land is driving property price growth and, as such, ‘all eyes’ are on in the Gold Coast as the current property hotspot.
A tight rental market
A rental market is considered balanced when rental vacancies sit at about 3 percent, however, in June this year, the rental vacancy rate in different regions of the Gold Coast ranged from under 0.9 percent to 1.8 percent.
This extremely tight rental market means that along with property values rising, so too are rents.
Strong sales volumes
Property sales volumes have continuously strengthened since 2012.
By the December quarter of 2015, the majority of Gold Coast construction projects were residential.
Nevertheless, this upswing in building construction over the past two years has been unable to keep pace with an increasing sales demand.
The shortage in supply of housing is being compounded by the slow speed with which new land is being released.
Therefore, the current situation of demand outstripping supply is expected to continue in the Gold Coast for the medium term.
Factors driving Gold Coast growth
The Gold Coast economy is healthy at this time and in the coming years will deliver big win falls for astute investors.
Factors driving this growth include:
A strong jobs market
Gold Coast leads the way on job creation in Queensland. This is largely powered by new projects, infrastructure and international events.
By June 2016, the number of employed persons had increased 5 percent over the year.
Besides the thousands of jobs created by new infrastructure and the significant, and numerous, road upgrade projects around the city, the 2018 Commonwealth Games will add another 30,000 jobs to the Gold Coast.
- Gold Coast is experiencing an increasing population growth; from between 2 percent to 2.4 percent over the next decade.
- Gold Coast is projected to experience the largest population growth in all of Queensland, between 2011 to 2036.
- International tourist visits increased by 6 percent for the year ending June 2015, with China accounting for the largest visitor increase
- Gold Coast tops Chinese traveller’s list as the most popular destination to visit in Queensland.
- Two new direct flights from China to the Gold Coast have commenced and are expected to bring an additional 40,000 visitors to the city per annum.
International Gold Coast events
Three (potentially four) upcoming international events will enhance the city’s international recognition and attract people and overseas investment to the Gold Coast.
These include the:
- 2017 badminton championships
- 2018 Commonwealth Games
- 2020 World Bowls championships
- The Australian government has bid for the Prince Harry’s Invictus Games to be held in the Gold Coast in 2018. If successful, this event will bring some of the Royal Family to, and focus the eyes of the world on, the city.
- After a protracted down market following the global financial crisis (GFC), there is now a renewed confidence among buyers and sellers
- Prices are rising and both interstate and overseas investors are targeting the Gold Coast property market
- The population continues to grow
- Land remains scarce and, for the reasons already outlined, this shortage will continue for a while
What this means to you
I am sure that like all my clients, you want to:
- Reduce tax
- Pay off your home and/or all other debt faster and
- Retire sooner with more financial options available to you.
Residential property is a proven vehicle for doing these three things.
It needs to be undertaken correctly, with the right strategies around the property and the financing of it.
My team and I have been partnered with clients for almost 15 years, with a clear focus on developing and supporting long term strategies to build their wealth. Reducing taxes and eliminating debt are by-products of a good wealth creation strategy.
Contact us on 1300 883 854 or online >>>here to begin obligation free discussions about how we can assist you to achieve your financial goals.
Partnering with you for your investment success,