IT COULD be a bubble of hope for Gold Coast property owners. The threat of possible investment bubbles forming in the real estate markets of southern capitals has resulted in property investors turning their attentions to the Gold Coast.
With rental returns in Sydney and Melbourne failing to reflect property prices, cashed-up buyers are looking further afield.
Real Estate Institute of Queensland Gold Coast president John Newlands said the market was starting to see signs of a property bubble down south.
“Prices in Sydney and Melbourne have grown so much, rental returns aren’t keeping pace,” he said. “People find they can invest here and get more value for money.”
Mr Newlands said traditionally the Gold Coast market had evolved on interstate clientele and New Zealanders moving across the Tasman Sea.
“Then Brisbane buyers became a force in the past 10 years,” he said.
He tipped areas where housing was still affordable and had lots of infrastructure as places to invest.
“Some parts of Southport, Labrador and out to Helensvale are growth areas,” Mr Newlands said.
“They have great services such as schools, trains and the hospital.”
DJ Stringer principal David Stringer said his business had just had its best quarter for probably five years on the back of southern investment demand.
“There’s so much demand in Sydney, it’s overwhelming,” he said. “It’s not pushing values up yet, but it probably will and I think the next few years will be really strong.”
Mr Stringer said while southern buyers were still a little spooked on the Gold Coast after the crash in property values following the global financial crisis, he was still seeing lots of interest.
He tipped the Tweed Heads-Coolangatta pocket was a place to invest.
“The area around the hospital and shopping precinct and just over the road into Coolie,” he said.
John Henderson Professionals Mermaid Beach director Luke Henderson said his agency had a lot more inquiry than it had seen for years, including from China.
Mr Henderson said price point was the main attraction for many southern buyers.
“They’re getting positions closer to the beach than what their money can afford down south,” he said.