Strongest signs of Gold Coast property growth since GFC

The strongest positive signs have been recorded in the Gold Coast property market since the GFC confirming that the sector is on the move.

Queensland’s Valuer General has released annual valuations for more than 141,000 properties in the city, showing land values on October-1 2015 had increased by 14.4%

Many property experts agreed that unprecedented demand since the GFC was due to a lack of housing stock, the return of trade workers on major projects, along with Chinese investors and buyers from interstate.

Real Estate Institute of Queensland Gold Coast chairman, John Newlands, said buyers had the confidence to move on residential properties, with “the action in $450,000 to $600,000 range”.

Property Council of Australia Gold Coast executive director Chris Mountford said there was strong growth and a return of confidence on the Gold Coast in terms of property development in particular.

Sustainable Development Gold Coast president Byyn Lummus said construction of major infrastructure projects and enthusiasm for the Commonwealth Games, along with tourism and foreign investment, was driving the market.

The Gold Coast Bulletin earlier this week reported on a $3 billion construction boom which will see the northern suburbs become the city’s “jobs engine room”.

“This has helped better insulate the Gold Coast from problems experienced elsewhere in Queensland and keeps our unemployment low,” Mr. Lummus said.

“This has built a demand for Gold Coast property,” The increases had started from a very low base and the strong growth reflected that the Coast had yet to have a recovery period, post-GFC.

“Sydney and Melbourne have seen strong growth over a number of years and in a very typical cyclical fashion this leaves Gold Coast property being a very attractive proposition comparatively,” Mr. Lummus said.

Homeowners in the booming suburbs were expected to be spared major rate increases but would have to pay more in land tax.

Council finance committee chairman William Owen-Jones said: “The valuations are a positive reflection of the uplift in confidence in the Gold Coast economy.

“The rating categories are adjusted to reflect those increases, so the full values are never passed on to the average general rate.”

.