State of Markets - QLD March 2013

Hospital to bolster Gold Coast property
Suburbs within a four-kilometre radius of a new hospital on the Gold Coast are set for growth, according to VFM buyers’ agent and property valuer, Tony Coughran.

Southport, Parkwood, Labrador and Molendinar have been pointed out as hotspots by Mr Coughran. They will benefit from a $1.8 billion investment in the Gold Coast University Hospital by the Queensland government. Due to open in September this year, the project is expected to drive residents to the area.

“The Gold Coast hospital is the largest construction site in the southern hemisphere funded by the government,” Mr Coughran said.

“There will be capital gains and extraordinary rental growth due to the lack of supply and excessive demand in the coming months.”

Robust market expected
Queensland’s property market is expected to be ‘robust’ over the next few years, with more sales activity on the back of “new-found optimism”, according to property industry experts.

Real Estate Institute of Queensland (REIQ) CEO, Anton Kardash, said in his newsletter, “The Queensland market certainly appears to be on the road to recovery, helped in no small part by the necessary lowering of interest rates by the Reserve Bank of Australia throughout the year to help stimulate our economy."

Last year BIS Shrapnel also forecast that growth in the Queensland market would be seen over 2013 to 2015.

“The Queensland economy is also beginning to turn around with the next round of investment in new resource projects coming through,” BIS Shrapnel’s Angie Zigomanis said.

“Consequently, economic conditions are forecast to rapidly improve, with the ensuing employment and income growth to create a greater level of purchaser confidence.”