Good news for anyone who owns a home in Hope Island… The popular suburb on the northern Gold Coast has increased its annual median house price by almost 50 per cent.
According to fresh data released by the Real Estate Institute of Queensland, Hope Island experienced a quarter on quarter median price growth of 43.4 per cent
It was a surprise outcome, with Queensland’s housing market performance experiencing an overall reduction of 0.7 per cent during the September Quarter.
The booming suburb of Ormeau experienced the second highest growth rate for the city, increasing by 14 per cent, which is a significant jump considering its five year growth was 14.7 per cent.
REIQ Gold Coast Zone Chair Andrew Henderson said the northern corridor is becoming one of the most sought after areas in the city.
“The northern growth corridor offers apple opportunity for modern and new homes on an owned block of land – the quintessential Australian dream,” Mr Henderson said.
“Northern Gold Coast also offers more opportunity for buyers to own their own piece of land, as this area generally offers lower density housing.
“Buyers can still live on the Gold Coast today for the lifestyle, but with good access to Brisbane and major infrastructure.
In Ormeau, new housing developments and a convenient location contributed to its growth, however Mr Henderson says in Hope Island, high-ticket sales would have helped drive up the median sales prices.
“The Hope Island area offers property owners the lifestyle choices of multiple golf courses, marina berths, shopping centres, and palatial waterfront homes – and for boaties, there is easy access on the Broadwater,” he said.
“Plus a number of gated communities, such as the world renowned Sanctuary Cove Resort, are available for those seeking additional security.”
Central Gold Coast market to remain buoyant in the early 2020: HTW residential
Given the positive final quarter of 2019, the central Gold Coast area is anticipated to remain fairly buoyant throughout the first half of 2020, according to a recent Herron Todd White (HTW) residential report.
The valuation firm ask their valuers to give an educated outlook on the residential market in their service areas.
The report notes sales activity spiked during September and October 2019 and local agents have reported that good levels of demand continued throughout holiday period for a broad range of property.
The stable market conditions in the Sydney and Melbourne property markets along with the low interest rate environment and easing of lending policy has given confidence to local buyers, particularly those seeking to purchase property priced in the higher price brackets.
“Burleigh Heads and Burleigh Waters remain hot spots, however more recently we have noticed good sales activity in the suburbs of Miami and in Sorrento (Bundall),” the valuation firm said.
A two bedroom beach styled dimples in Miami has recently been sold for $670,000.
Situated at 2/10 Cantwell Court (pictured below), it comes renovated bath and kitchen, indoor and outdoor living space and backyard.
Set on a 372sqm block, the house is only 900m away from Miami beach.
The report notes it will be interesting to see how property will perform within the Isle of Capri (Surfers Paradise) over the year.
The Isle of Capri is regarded as one of the preferred residential waterfront areas within the established areas of the central Gold Coast, being within close proximity to the Surfers Paradise CBD.
A fairly large infrastructure project (road bridge upgrade) has commenced which aims to improve traffic flow through the locality (to and from the CBD area). The expected completion of the project according to local council is mid 2021.
In the meantime, residents are likely to be disrupted by the project due to increased traffic congestion caused by the ongoing road works.
“We will wait to see if the project has any significant impact on property sales in this pocket,” the valuation firm stated.
A waterfront house in Isle of Capri was sold for $4.5 million in January.
The four bedroom, three bathroom house is situated at 25 The Corso (pictured below).
The home comes with indoor and outdoor living space, swimming pool, open plan gourmet kitchen and four car garage.
The unit market may experience slightly tougher conditions in 2020 compared with 2019, according to the HTW residential report. This market (particularly within Surfers Paradise and Broadbeach) is heavily reliant on investors from interstate and overseas.
With a good volume of new unit stock introduced in 2019 and more high density projects due to be completed this year on the central Gold Coast, there is some concern about a potential oversupply in this area.
“On a more positive note, general feedback from local real estate agencies suggests that demand for rental properties has remained firm and rental values are trending upwards,” the valuation firm said.
This article is republished from www.propertyobserver.com.au under a Creative Commons license. Read the original article.
Gold Coast Beachfront Hotel Site Hits the Block
A five-star beachfront hotel in Surfers Paradise has hit the market after the developer received council approval for a 15-storey tower, with both the freehold and hotel up for grabs.
Sydney-based property syndicate CCS Property, led by Lawrance Ryko, pulled together the development deal—acquiring the ’70s-era Anglesea Court for $16 million.
Ryko is open to offers around the $20 million mark for the 1,037sq m freehold, and has tapped JLL to run an expressions of interest campaign for the hotel asset.
In September, CCS Property submitted a development application for a 15-storey hotel with 112 rooms, three penthouses and ground floor retail. Council approved the “Garfield Hotel” project last week.
JLL Hotels & Hospitality senior vice president Tom Gibson is managing the expressions of interest campaign for the hotel, which is available on a turnkey arrangement.
Two hotel operators including Los Angeles-based hotel operator Sbe are in talks to take up a management agreement or lease in the project.
Gibson said the Gold Coast hotel market is evolving into one of the more liquid investment markets.
“The Gold Coast has proven to be one of the most resilient hotel markets in Australia [with] recent major infrastructure investment including the Gold Coast Airport expansion and the Light Rail project,” Gibson said.
Other than the soon-to-be-completed $1.4 billion Jewel, there has been no absolute beachfront hotel development on the Gold Coast in more than 20 years.
Luxury hotel operator Langham announced it will occupy the five-star, 169-key hotel as part of the three tower Jewel last year. Further south, a proposal has been submitted for a 132-room luxury beachfront hotel on The Esplanade in Burleigh Heads.
“The Garfield Hotel will join the exclusive club of absolute beachfront positioning on the Gold Coast, with only the Sheraton Grand Mirage Resort and the under-construction Langham Hotel,” Gibson said.
The expressions of interest campaign for the Garfield Hotel closes Tuesday 31 March.
This article is republished from theurbandeveloper.com under a Creative Commons license. Read the original article.
Insurance in parts of the Gold Coast now unavailable or unaffordable due to flood risk
Some home insurers will no longer touch parts of the Gold Coast, leaving residents with unaffordable premiums or without insurance as what experts call the “red-zone” phenomenon expands.
It comes after the Gold Coast experienced a major flooding event earlier this month, with more than 120 millimetres of rain falling in one day. Rainfall records were also smashed earlier this year.
Quote requests lodged with Youi, Budget Direct and other budget insurers were denied for properties in Harris Court, Currumbin Waters, which is in a City of Gold Coast designated flood zone.
Other, larger, insurers offer quotes for policies, but the premiums could be as high as $9000 a year for just the house if storm surge coverage is included.
For policies where storm surge coverage was not immediately clear, the price was between $2500 to $2900.
One resident in the area, who declined to be named, told Domain that Youi declared there was no option to renew their policy when it expired.
Red zones are where home insurance becomes prohibitively expensive due to the high risk of natural disaster, or insurers decline to offer coverage at all.
In parts of Surfers Paradise, the situation is similar. In a flood zone in River Drive, both Youi and Budget Direct did not issue online quotes.
On Rapallo Avenue, Surfers Paradise, on a block partially in the flood zone, Youi will not complete a quote and Budget Direct would quote about $1100 a year but would not include flood cover.
Youi said in a statement the company was “selective about issuing new policies in Currumbin Waters because of the high risk of water inundation, a decision based on both independent flood mapping data and previous claims experience.”
The insurer did not answer the question about whether a Currumbin Waters resident could take out a policy at all, or why others were unable to renew. It did not address Surfers Paradise.
Budget Direct did not respond by deadline.
Climate change consultancy Climate Risk’s director Karl Mallon said the relatively unaffordable insurance rates or unwillingness to insure altogether was troubling.
“They could just turn down the flood cover, but reputationally it just doesn’t look good when a flood comes and people don’t get paid out,” he said. “They say, ‘we just don’t want to know.’
“If they’ve come to that view, what happens if other insurers do? You’re creeping towards uninsurability.”
Insurance premiums of up to $3000 were approaching unaffordability, Dr Mallon said.
“That’s indicating the market rate for flood,” he said. “Last I looked, the median wage in Australia is $60,000, it’s not actually that high.
“That’s 5 per cent of someone’s wage, that’s a lot of money. A few people are starting to baulk at the price.”
Dr Mallon said the $1100 a year figure, quoted by Budget Direct in Rapallo Avene, Surfers Paradise, was still a cause for concern.
“It’s a little bit on the high side but a normal sort of a price,” he said. “[But] when you try to add flood cover, they just won’t do it.”
The $9000 per year quote was provided by NRMA Insurance. A spokesman said in a statement the price was because their data modelling suggested a flood event was likely, but the premium could increase or decrease as new information became available.
“Our customers’ premiums are assessed at their individual property level and reflect their exposure to a range of risks, including flood, as well as other natural disasters,” he said. “NRMA Insurance Home policies automatically provide cover for flood, rainwater run-off and storm surge, which we believe is critical for our customers in coastal areas.”
Dr Mallon said the figure was close to a “real” price for the risk of insuring in these areas, but it amounted to red-zoning.
“If they’re coming in at $9000, that’s exactly a red-zone number for us. We think a lot of people may not be able to afford that,” he said. “There are only really two reasons. One is they genuinely believe that’s the right price they have to charge so they don’t make a loss.
“The only other explanation is they actively don’t want people to take their contract.”
Dr Mallon said he would think twice before buying a property in an area where insurance was that expensive.
If I was a home buyer and I was going into an area like this … this is a pretty big warning sign,” he said. “That’s for this year, that’s not even for the future with climate change.
“Someone buying a house is locking themselves in for 30 years, and the world is changing pretty fast.”
Youi’s statement said there was a need to restrict the construction of new homes in areas at risk of natural disasters, to ensure insurance would remain affordable.
Dr Mallon agreed.
“The big agreement [within the insurance industry] is that buildings are being built where they shouldn’t and with materials, they shouldn’t. It’s not acceptable,” he said.
“The idea we’re allowing the property sector to get away with building high-risk properties is like allowing people to put arsenic in one in 100 tubs of baby formula.”
This article is republished from www.domain.com.au under a Creative Commons license. Read the original article.
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