State of Markets - QLD February 2013

Gold Coast tipped for growth
A revival of property prices is expected in some areas of the Gold Coast on the back of billions of dollars of development, according to latest research figures.

The Coomera area and surrounds – Upper Coomera, Guanaba, Maudsland, Oxenford and Wongawallan – have been tipped for potential growth, with a $500 million rail line duplication recently added to the $5.2 billion worth of planned and underway development in the area.

“The northern corridor has been the fastest growing area on the Gold Coast for some time, and more infrastructure is needed to service that growing population,” said Stewart Gilchrist, Colliers International Gold Coast director.

Eleven other infrastructure projects are in the pipeline for the Coomera area, such as community hubs and schools.

Increased demand for affordable homes
Demand is rising across Queensland for affordable homes, according to data from the Real Estate Institute of Queensland (REIQ).

The REIQ September quarter showed the number of house sales under $350,000 increased by 24 per cent over the past year.
Of the 15 major regions in Queensland, seven have a median house price of $350,000 or under. In Mount Morgan, where the median house price is $165,000, there are currently 50 houses for sale under $350,000.

According to Andrew Wilson, senior economist at Australian Property Monitors, there has been a surge of activity in Queensland this year.

“This is driven by a reduction in the median house price over the past two years,” he said. “Brisbane remains the most affordable mainland capital city, and the Brisbane market is also characterised by a tight rental market.

“Brisbane has the highest yields of any mainland capitals, and that would account for a lot of activity by investors.”