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Annual Gold Coast Market Snapshot; SQM
Topic Started: 22 Sep 2015, 05:47 PM (1,818 Views)
peter fraser
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Annual Gold Coast Market Snapshot

-With Louis Christopher

SQM Research has today released its annual Gold Coast Market Snapshot. The key findings of the report are that dwelling prices are expected to rise by 7-11% for 2016 for which should make the Gold Coast an outperforming region for real estate investors next year. As a consequence, SQM Research has lifted its investment rating for the areas from 3.0 stars (issued in 2011) to 3.75 stars. The basis for this forecast and upgraded rating are as follows:

* Very low vacancy rates of under 2%
* Rents currently rising at up to 8% p.a.
* Rental yields very high at 6%
* Continued robust population growth of 2.5% p.a.
* Low dollar will see tourism continue to recover
* Current strong employment growth conditions
* No sign of new building surge yet
* Enthusiasm for 2018 games will assist economy
* Market crash of 2009-13 and just modest recovery until now means prices are still below fair value.

That said, there remain some key risks on the Gold Coast that investors should be aware of. These include:

* Housing market highly volatile
* Boom/bust economy too reliant on tourism
* Watch out for possible post games slump in 2019
* Real estate scams are still present in the region


Back in 2010 the Gold Coast housing market suffered a perfect storm of events that created a major dwelling price crash. A lot of those events have now dissipated and right now, there are many favourable economic factors which are helping to improve the region. So we believe Gold Coast property investors are likely to enjoy good returns, both in rents and capital growth for up to the next three years.



In summary

* SQM Research forecasts dwelling price growth for the Gold Coast of 7-11% for 2016.
* SQM Research has lifted its rating for the area.
* The Gold Coast housing market is entering into a more robust housing recovery period after a severe downturn that lasted four years.
* The current recovery appears to be in early stages and has occurred as a result of an improving local economy, which in turn has been assisted by a lower Australian dollar, thereby encouraging tourists to the region.
* The economy on the Gold Coast is overall largely driven by tourism and construction for which both sectors are now in recovery.
* The Gold Coast has a population approaching 600,000 with one of the highest rates of population growth in Australia at 2.5% p.a.
* Sentiment for the Gold Coast has improved in recent times, especially with the ongoing build up to the 2018 Commonwealth Games which promises to be positive for the economy.
* There is no question right now Landlords are in charge of the Gold Coast market as vacancies have plummeted and rents have accelerated.
* Residential building activity has increased since its bottom in 2013, however, building rates are nowhere near the surges recorded in previous cycles and is likely to remain in check for the next three years.

For further information, click here.
Edited by peter fraser, 22 Sep 2015, 06:01 PM.
Any expressed market opinion is my own and is not to be taken as financial advice
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Andrew Judd
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peter fraser
22 Sep 2015, 05:47 PM
Annual Gold Coast Market Snapshot

-With Louis Christopher

SQM Research has today released its annual Gold Coast Market Snapshot. The key findings of the report are that dwelling prices are expected to rise by 7-11% for 2016 for which should make the Gold Coast an outperforming region for real estate investors next year. As a consequence, SQM Research has lifted its investment rating for the areas from 3.0 stars (issued in 2011) to 3.75 stars. The basis for this forecast and upgraded rating are as follows:

* Very low vacancy rates of under 2%
* Rents currently rising at up to 8% p.a.
* Rental yields very high at 6%
* Continued robust population growth of 2.5% p.a.
* Low dollar will see tourism continue to recover
* Current strong employment growth conditions
* No sign of new building surge yet
* Enthusiasm for 2018 games will assist economy
* Market crash of 2009-13 and just modest recovery until now means prices are still below fair value.

That said, there remain some key risks on the Gold Coast that investors should be aware of. These include:

* Housing market highly volatile
* Boom/bust economy too reliant on tourism
* Watch out for possible post games slump in 2019
* Real estate scams are still present in the region


Back in 2010 the Gold Coast housing market suffered a perfect storm of events that created a major dwelling price crash. A lot of those events have now dissipated and right now, there are many favourable economic factors which are helping to improve the region. So we believe Gold Coast property investors are likely to enjoy good returns, both in rents and capital growth for up to the next three years.



In summary

* SQM Research forecasts dwelling price growth for the Gold Coast of 7-11% for 2016.
* SQM Research has lifted its rating for the area.
* The Gold Coast housing market is entering into a more robust housing recovery period after a severe downturn that lasted four years.
* The current recovery appears to be in early stages and has occurred as a result of an improving local economy, which in turn has been assisted by a lower Australian dollar, thereby encouraging tourists to the region.
* The economy on the Gold Coast is overall largely driven by tourism and construction for which both sectors are now in recovery.
* The Gold Coast has a population approaching 600,000 with one of the highest rates of population growth in Australia at 2.5% p.a.
* Sentiment for the Gold Coast has improved in recent times, especially with the ongoing build up to the 2018 Commonwealth Games which promises to be positive for the economy.
* There is no question right now Landlords are in charge of the Gold Coast market as vacancies have plummeted and rents have accelerated.
* Residential building activity has increased since its bottom in 2013, however, building rates are nowhere near the surges recorded in previous cycles and is likely to remain in check for the next three years.

For further information, click here.
Peter, It seems like breaking news to me to hear from yourself and SQM that the gold coast had a major market crash with only a modest recovery so far.

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peter fraser
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Andrew Judd
22 Sep 2015, 06:10 PM
Peter, It seems like breaking news to me to hear from yourself and SQM that the gold coast had a major market crash with only a modest recovery so far.
Breaking news? Hardly we have often discussed the crash in market values on the GC here.

That's why I've been positive about the GC long term. It's a market that I normally wouldn't touch, but it fell so low that the bargains were everywhere.
Not so much now though, in fact I've got client buying there right now and complaining that there isn't sufficient choice.

A few years back $500K would have bought you a $1M plus house quite easily in some localities. You might still get something at Hope Island.

7% to 11% growth is better than modest, and it should last for a few years at that pace.

Edited by peter fraser, 22 Sep 2015, 06:19 PM.
Any expressed market opinion is my own and is not to be taken as financial advice
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The Whole Truth
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The key findings of the report are that dwelling prices are expected to rise...

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Same old shit :z:
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
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Dexter
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The Whole Truth
22 Sep 2015, 06:58 PM
The key findings of the report are that dwelling prices are expected to rise...

Posted Image

Same old shit :z:
Why wouldn't prices rise on the Gold Coast. Afterall it is one of the few Australian housing markets that had a housing crash. Countries that had a housing crash now have rising house prices.

Another thing that should help the Gold Coast is the lower Australian dollar. Makes the Gold Coast a bit cheaper for foreign buyers.
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The Whole Truth
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2014 High hopes for Gold Coast property 


Auction activity will be quiet across the capital cities until after school holidays, but on the Gold Coast, late January is a very busy time. This year, buyer confidence from the capitals may begin spreading to this iconic leisure market, which has been characterised by a lack of capital growth and an oversupply of mortgagee stock.
http://www.afr.com/lifestyle/high-hopes-for-gold-coast-property-turnaround-20140123-iy7dj


2013 The Gold Coast property market is expected to begin its recovery from about 2015
in line with a seven year recovery cycle, according to Prodap Report author Bill Morris.Morris expects a recovery in both house and unit prices as demand starts to exceed the supply of new housing stock 
Http://www.smartcompany.com.au/growth/economy/31522-gold-coast-property-gloom-to-lift-in-2015-prodap-report.html
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
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Well done
Unregistered

The Whole Truth
22 Sep 2015, 07:14 PM
The Gold Coast property market is expected to begin its recovery from about 2015

in line with a seven year recovery cycle, according to Prodap Report author Bill Morris. Morris expects a recovery in both house and unit prices as demand starts to exceed the supply of new housing stock
This guy nailed it. Good call Bill.
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The Whole Truth
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Nailed his own coffin is all
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
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Trollie
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The Whole Truth
22 Sep 2015, 07:14 PM
2014 High hopes for Gold Coast property 


Auction activity will be quiet across the capital cities until after school holidays, but on the Gold Coast, late January is a very busy time. This year, buyer confidence from the capitals may begin spreading to this iconic leisure market, which has been characterised by a lack of capital growth and an oversupply of mortgagee stock.
http://www.afr.com/lifestyle/high-hopes-for-gold-coast-property-turnaround-20140123-iy7dj


2013 The Gold Coast property market is expected to begin its recovery from about 2015
in line with a seven year recovery cycle, according to Prodap Report author Bill Morris.Morris expects a recovery in both house and unit prices as demand starts to exceed the supply of new housing stock 
[url]Http://www.smartcompany.com.au/growth/economy/31522-gold-coast-property-gloom-to-lift-in-2015-prodap-report.html[/url]
Do you want us to chronicle all the Australian property crash predictions?

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The Whole Truth
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By "us" do you mean you and all your socks?
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
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