The Gold Coast and Sunshine Coast property markets are performing well. This is because of improving affordability and lifestyle market paired with record-low interest rates. Upon the release of the latest cash rate by the RBA, more investors are now entering the market.
Back in July 2019, Housing Industry Association reported housing affordability in the Gold Coast is at its best since 1999. Because of affordability, wage growth improvements and record low-interest rates, that is still persistent to date.
Investors from Sydney and Melbourne (mostly Sydney) are turning to the Gold Coast because of its affordable housing and growing economy. The region is now dealing with strong demand mainly from people south of the border.
“People are confident about the Gold Coast and after years of uncertainty, a lot of pent up demand and a need to readjust their real estate holdings has seen a surge of buying activity,” said Ray White Surfers Paradise CEO Andrew Bell. More buyers are gaining more ground because of record-low interest rates and household earnings increased by more than 100 per cent over two decades in 2019.
There is a strong chance that the Gold Coast will outperform Brisbane because of land supply. In the Gold Coast, new land for construction of homes is already limited unlike in Brisbane. The Gold Coast’s lifestyle market is also a focal feature of why several property investors are choosing the area.
Sunshine Coast is also proving to be a viable investment destination. There are still a couple of suburbs with median house prices below $500,000. There are new and on-going infrastructure projects tipped to boost capital growth prospects. Majour projects include the Sunshine Coast Airport expansion project and the massive Marrochdore CBD transformation project.
Investors with a budget ranging from $500,000 to $600,000 can secure a great property in the Gold Coast and Sunshine Coast, especially in the latter. According to Eliza Owen, CoreLogic Australia’s head of Australia research, Sunshine Coast is in the midst of redevelopment. “We’re seeing redevelopment of the Sunshine Coast – they want to put in a new SunCentral CBD which could attract commercial tenants and promote jobs in the area as well,” she said. Queensland’s strong employment market mainly on technical, professional and scientific fields will result in high incomes.
Further Cut Rates Expected
The country’s cash rate remains at record-low 0.75 per cent meaning borrowing rates for households are at “historically low levels.” RBA Governor Philip Lowe said, “Mortgage rates are at record lows and there is strong competition for borrowers of high credit quality.”
Lowe also said households will be more comfortable with their finances. “Growth in employment, stronger growth in disposable income than in recent years and the recent increases in housing prices will also help here, as will an upswing in residential construction,” he stated.
The property market is expecting two more cuts this year with the first one taking place in April. The second cut is expected to go down in July bringing the cash rate down to 0.25 per cent. More property investors are entering the SEQ property market with record-low interest rates. Also, a couple of banks slashed their home loan packages including Westpac and ANZ.
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