Why Gold Coast property is attracting Sydney buyers
If you live in Sydney or Melbourne then the likelihood of buying a property in each of these cities right now is pretty low. With property prices becoming more and more expensive, many more property buyers are finding property far more unaffordable. However, if you are open to investing in property interstate, then one city worth considering right now is the Gold Coast, QLD.
So, why should you be considering the Gold Coast as a place to invest in property? Here are 12 great reasons you need to consider first.
12 Great reasons to buy Gold Coast property today
1. Gold Coast more affordable than Sydney & Melbourne property prices Firstly, Gold Coast properties are much more affordable than Sydney and Melbourne properties. According to CoreLogic at 31 March 2017, the median property price in the Gold Coast was $490,000, compared to Sydney’s $805,000 and Melbourne’s $605,000. Investors can get much more for their buck here compared to Sydney and Melbourne right now and the lifestyle is pretty attractive too.
2. 2018 Commonwealth Games With the Commonwealth Games to be hosted in the Gold Coast in 2018, it is expected that the region will continue to enjoy growing house prices, more than two years after the closing ceremony. The PRDnationwide 2018 Commonwealth Games residential property report suggests that the market will continue to grow by up to 25 per cent in 2020, helped by the Games venues as well as other infrastructure that has been brought forward.
The report forecasts that the Gold Coast residential property market will grow at a higher rate than the 20 per cent experienced at Melbourne’s 2006 Commonwealth Games, but less than the 40 per cent boost two years after Sydney Olympic Games in 2000.
3. $20,000 First Home Owner Grant With more and more first home buyers struggling to get on the property ladder in Sydney and becoming frustrated by the continuous property price hike, some first home buyers are moving to the Gold Coast and taking advantage of the First Home Owner Grant of $20,000 until 30 June 2017, compared to just $10,000 in Sydney against far higher property prices. This grant along with more affordable property prices is certainly attracting Sydney buyers to Gold Coast property.
4. Outstanding lifestyle It’s easy to see why so many people are flocking to the Gold Coast. With approximately 300 days of sunshine a year, you can soak up the sun all-year round, enjoy outdoor barbeques, go swimming or surfing in the sea and generally enjoy the wonderful outdoors lifestyle.
5. Improved employment levels With the preparation works underway for the 2018 Commonwealth Games, this has boosted employment levels with new infrastructure including the $670 million expansion of Pacific Fair, the $420 million Gold Coast Light Rail Stage 2 project as well as the $345 million Jupiter Casino development.
6. Presents a semi-retirement option Many Sydney buyers are also attracted to Gold Coast property for retirement options. The Gold Coast lifestyle is very attractive for many looking to buy property for their retirement later on. Not only do you have beautiful beaches and the stunning coastline to admire and experience, but there are plenty of retail and dining amenities and good transport links here too, enabling you to soak up a social lifestyle in a beautiful setting.
According to the Australian Bureau of Statistics’ 2011 Census, senior residents (aged over 65 years) made up 14.4 per cent of the Gold Coast population (71,363 residents). However, by 2031, the number of Gold Coast senior residents is expected to double.
7. Gateway to Asia With the $200 million airport expansion, Queensland is soon to become the Gateway to Asia with tourists arriving to Brisbane first and then dispersing and visiting different parts of the state including the Gold Coast only an hour from Brisbane. There is expected to be a new direct service between Beijing and Brisbane as well as increase the frequency of existing services. This will attract more tourists to the Gold Coast and Queensland, strengthening the economy and putting the Gold Coast on the map.
8. Strong population and tourism growth The Gold Coast is now fuelling a national population surge with projections by the Australian Bureau of Statistics putting the nation’s population at 40 million within the next 40 years, more than double what it was just a decade ago. The ABS projects that Queensland will grow by 85 per cent to 8.9 million people by 2057 and the Gold Coast will take the lead on this explosive population growth.
In comparison, NSW is projected to grow 45 per cent to 11.2 million, whilst Victoria is projected to grow 64 per cent to 10 million in the next 40 years. The factors contributing to a population surge are from the natural higher birth than death rate as well as through international migration and interstate migration where more people are coming into the Gold Coast than are leaving.
9. Weaker Aussie dollar will drive and boost tourism The weaker Aussie dollar is also boosting tourism, making the Gold Coast a much more competitive holiday destination and has helped to boost the economy.
10. Exceptional homes The Gold Coast is also home to some exceptional beachfront and waterfront homes, making a property purchase here far more appealing. Even apartment developments are becoming more unique with a variety of superb hotel-style resident only facilities such as rooftop pools, state-of-the-art gymnasiums, outdoor cinema, private lounges and dining rooms as well as concierge services, which you are less likely to find in Sydney apartment developments.
11. Construction and lands costs significantly lower than in Sydney and Melbourne When you buy property in the Gold Coast, you will also benefit from significantly lower construction and land costs compared to Sydney and Melbourne, allowing you again to get more from your money.
12. Gold Coast supply constraints Funding restrictions on the Gold Coast have led to a limited supply of stock across all property sectors, making today the perfect time to invest in Gold Coast property. The Gold Coast is now playing catch up with a decade of low residential construction sparked by the Global Financial Crisis (GFC). This period of time saw very little stock added to the market, resulting in a dry up of supply and a low vacancy rate of 2.5 per cent.
Gold Coast property provides an alternative option The Gold Coast is not only regarded as the retirement capital of Australia, but is also home to affordable, good quality housing which is difficult to find in the other Australian capital cities.
With many people getting more frustrated to live in Sydney right now due to being priced out of the market and unable to get a foothold in property, the Gold Coast provides an alternative option and is certainly worthwhile considering.
Still be wary If you are thinking about buying an investment property in the Gold Coast then it’s important that you are still wary. The Gold Coast is still heavily reliant on tourism, so it’s essential that you do your research and buy in a good location, to increase the likelihood that your property performs well even in slower times. You should pay particular interest to properties that are within close proximity of public transport, good schools, hospitals and important amenities like shops, cafes and restaurants.
Just like wherever you buy a property, a high-quality property in a good location will attract more rental tenants as well as future buyers, so it’s in your best interests to do your thorough research first.
Positive long term outlook When looking at the long term, then investing in Gold Coast property does have its positives. With a current undersupply of properties alongside a large amount of infrastructure spend, this will help to drive sustained growth over the long term.
With the Gold Coast playing catch up on the low supply coming onto the market since the GFC, there has been a number of new apartments being completed over the past 12 months; however, an undersupply still remains.
As the Commonwealth Games is just under a year away, now is the perfect time to purchase property on the Gold Coast, whether you are an investor or owner occupier.
Get in touch Find out more about why Gold Coast property is attracting Sydney and Melbourne buyers and discover our full range of luxurious, yet affordable Gold Coast properties we currently have available for sale by getting in touch with the iBuyNew team today.
Call our Property Consultants on 1300 123 463 for a friendly and informative chat.
Published on 25th of May 2017 by Marty Stanowich