Good time for Investors to buy as Land Lords are the Big Winners
The Gold Coast property market still cannot catch a break as its recovery continues to lag behind the rest of the country as experts warn rental prices could skyrocket in the coming year.
Latest RP Data figures show house prices across the country bounced back in October after a sluggish September, but Brisbane -- and subsequently the Gold Coast were among the slowest to join the recovery.
Australian house prices rose by 1.4 per cent in October after just 0.4 per cent growth in September, recording a 10 per cent rise in the past 10 months. While Sydney lead the charge with 14.9 per cent growth so far this year, Brisbane only managed to grow 6.9 per cent.
"Brisbane has been lagging behind what we are seeing in Sydney and Melbourne, where there has been pretty strong growth, and there hasn't really been many signs of improvement,"
"That is relevant to the Gold Coast as well ... coastal areas linked to tourism will continue to take longer to recover. "As interest rates rise over the next 12 to 18 months more normal rates of growth are likely.
"The removal of the first home owner’s grant boost and higher loan costs will also result in greater pressure on the rental market."
Leading industry economic forecaster BIS Shrapnel has also warned of looming rental pain with the Gold Coast falling into a rental property supply crisis.
Senior economist Jason Anderson said in the next three years to 2012, national average yearly rental growth would be 5.8 per cent, resulting in rental households passing an extra $1.9 billion to landlords each year.
The serious decline in construction of medium and high-density housing -- to the lowest levels since 1991 -- has caused the Coast crisis.
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