In another sign that the Gold Coast property market has strengthened, a major network has recorded its best sales month in the region for four years.
Ray White Surfers Paradise Group has said it has generated $76 million in sales across its residential, prestige, commercial and new projects divisions in May.
According to CEO Andrew Bell, the bumper sales haul was the strongest sign that the market was bouncing back from the global financial crisis.
“In a month when property purchasers could have been swayed by negative economic indicators like the federal Budget deficit, a falling Australian dollar and the stock market declining, we recorded our strongest sales month in years,” he said.
“It demonstrates the real estate market is primarily driven by a different set of fundamentals - price growth, attractive interest rates and a steadily rising population.
“As well as this, there is a sense the market has bottomed out, which has triggered people who may have been sitting on the sidelines to enter the market.”
Senior economist for Australian Property Monitors Dr Andrew Wilson told Real Estate Business’ sister publication Smart Property Investment last week that the entire south east Queensland market had begun healing.
“Our latest figures show that median prices on the Gold Coast were up by 1.3 per cent over the March quarter and 3.6 per cent over the year, so there’s certainly a better story there for the market,” he said.
“We’ve now had three consecutive quarters of price growth on the Gold Coast, so signs are pointing to a much more positive environment.”
Raine&Horne recently reported that multiple offices had seen their confidence increase by 60 per cent due to low rates and affordable property prices.
Principal of Raine&Horne Surfers Paradise, Clark Brackenridge said investors in particular had realised that the Gold Coast market had bottomed out.
“Investors are identifying now that they can buy properties on the Gold Coast for much cheaper rates than any other major centre, and the yields aren’t too different,” said Ms Brackenridge.
According to Mr Bell, the lower Australian dollar had led to a notable increase in foreign investment, primarily from Asia, with overseas buyers accounting for more than 30 sales in May.