Weekly Commentary – 2nd December 2014
Do you know that life can only be understood looking backwards, however it is what we do moving forward that is the only thing that can make a difference in our life.
So looking backwards what we understand here in the property market on the Gold Coast is that we have had a substantial resetting of prices due to the GFC and that process undermined confidence amongst not only locals but certainly interstate visitors in the entire Gold Coast region. There were lots of stories about the significant drop in prices.
Again looking backwards there has been a recovery in property prices throughout Australia in recent years and nowhere stronger than Sydney & Melbourne. So it became plainly obvious that whilst the Gold Coast properties remain somewhat stagnant Sydney & Melbourne galloped ahead.
Again looking backwards that could never go on forever because price growth in those two markets was so strong. But what wasn’t plainly as obvious to everybody was that a huge price differential was being created and that one day Sydney & Melbourne would slow and buyers in general….and investors in particular…. would be looking for alternative markets that were more realistically priced. So the Gold Coast which is Australia’s sixth largest city and the host of the 2018 Commonwealth Games all of a sudden started to become an obvious choice for many buyers.
I knew that significant increased buyer activity would occur but no one can ever pick it to the day. We imagined that spring would see that strong activity and indeed we saw significant activity but it hasn’t really been until the month of November that we can really say it has arrived in earnest.
November was an incredibly busy month with sales right across the board whether that be in lower priced apartments, right through to the highest apartment sale to date at $5.75 million or general housing which has shown incredible activity and again pleasingly in the higher Prestige priced brackets as well. Commercial real estate has been consistently strong for many months with a particular attraction for development sites and properties with blue chip tenants.
So the stage was set for a strong summer run and you get the sense that this could be real estate’s best summer season in 10 years. For buyers this is about understanding the past and seeing the road that has been built to the present. Understanding that on the Gold Coast the future has not looked better as the city is in build-up phase to the 2018 Commonwealth Games which will showcase this city like never before. This is the time to make decisions, take action to set you up for the future.
For sellers there is no better time to present their property to the thousands of tourist and buyers that will be on the Gold Coast throughout summer. This is the perfect marriage of strong buyer demand and a wonderful array of Gold Coast properties and we are proud to be able to provide opportunities, service and commitment to help our clients achieve their goals in 2015.