My best 12 tips and tricks for first-home buyers

Aussie home values rose 18.4 per cent over the past year. No, that’s not a typo.

One of the more devastating economic side effects of COVID-19 for aspiring first-home buyers has been how the steep fall in interest rates has inflated home values.

I’m more agnostic than most about the virtues of homeownership, versus renting and investing your savings.

The tax breaks on housing are generous but beware the hidden costs, such as stamp duty, which can add up if you move too often.

The choice to buy is a personal one, often driven by desire for stability and security. That was certainly a big factor for me in buying my first home almost two years ago.

So, if you have decided your goal is to own a home, here are my top tricks and tips to help you. It won’t get everyone a home, but I hope it provides you some food for thought during what can be a stressful experience.

It’s harder for you than your parents

Baby boomers will recall their days of having to scrimp and save for a home deposit. And that may have been true for their experience.

However, it didn’t take – as it does today – an average of 11 years for a worker on the median full-time salary (about $80,000) to save a 20 per cent deposit on the median home value ($666,000), assuming a savings rate of 15 per cent of gross income. It just didn’t.

Don’t give up

Yes, it’s a bitter pill to swallow that the home you want could have, on average, cost about 20 per cent less this time a year ago. But it is what it is. And barring a property crash, which almost nobody is predicting, it’s only going to get worse.

Adjust your expectations

While you’ve been faithfully sticking to your idea of what property should be worth, everyone else has been out there hocking themselves to their eyeballs in debt and pushing up prices.

I’m not saying it’s right. I’m just saying your one-person protest at the inequity of it all is not doing much to change things.

Lower rates work in your favour

While they make it harder to save a deposit, lower interest rates increase the amount financial institutions are willing to lend you. Why? Because when interest costs fall, you have more space in your budget to meet the repayments on a bigger loan. You might be surprised how much the banks are willing to lend you.

Talk with lenders early

When I got serious about getting a home loan, I literally walked into three bank branches on my high street and spent a couple of hours chatting to their loan staff. They’ll ask for an estimate of your income and living expenses and usually give you a rough idea of what size loan you could service.

Many home-loan specialists are also doing zoom sessions during lockdown. Just make sure it’s only a preliminary conversation, and you’re not formally applying for credit because this can show up on your credit history.

Track your spending

If you do speak to a lender or broker, the first thing they’ll do is pepper you with questions to which you don’t know the answers. How much do you spend on electricity? Haircuts? Entertainment? Food? Eating out? Get ahead of the game by figuring this out in advance. And cut where you can.You can download and use the spending tracker I designed here.

Investigate the FHSSS

Stashing your savings in the bank doesn’t get you much these days. It is tempting to look at shares, but volatility can make things tricky.

One alternative is the First Home Super Saver Scheme, whereby you can put money into your superannuation at the low tax rate of 15 per cent, then later withdraw up to $50,000 for your first home. Eligibility and withdrawal conditions apply but, if I was starting again, I’d check it out.

Re-think your deposit

It would be nice to put down a full 20 per cent deposit on your first home, but it is not necessary. I put down about 15 per cent. It is not uncommon for major banks to accept deposits of 10 per cent – often less with smaller players.

Just be aware you’ll be up for paying Lenders Mortgage Insurance (LMI) if you don’t have the full 20 per cent, which can cost upwards of $10,000. You can have the cost added to your loan amount.

If your income is below a certain threshold, you can investigate accessing the government’s First Home Loan Deposit Scheme. Places are limited and not all lenders can offer it, but it covers the cost of your LMI on loans with deposits as small as 5 per cent.

There is a separate scheme for single parents with deposits of just 2 per cent.

Access ‘bank of mum and dad’

Swallow your pride and ask for help – if you’re lucky enough to have it. Parents can go guarantor on a loan to help you avoid paying LMI. They can also just give you cash for your deposit. It’s so unfair but it’s true.

Reconsider location

Think about whether you could live at least a suburb or two further out. The rise of working from home has opened up new opportunities for living further afield, where prices are generally lower.

Local property markets vary

Property prices rarely rise across the board. Talk to real estate agents about which suburbs may be undervalued. Take it all with a pinch of salt, but it can’t hurt to ask, right?

Re-imagine your dream home

It’s hard, but chances are you can live in something smaller. Unit prices have not risen as fast as free-standing homes. Many people are now raising young families in units or apartments. Nab a ground floor one if you can – they can feel quite house-like and give you direct access to communal space.

Good luck out there, I’ll be thinking of you.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions. 

 

Article Source: www.brisbanetimes.com.au

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Rental Yields Hit All-Time Low

Soaring residential property prices are pushing yields to historic lows as the rental market struggles to keep up.

Gross rental yield dropped to an all-time low of 3.32 per cent with national housing values rising by 18.4 per cent and rents rising only 8.2 per cent, according to Corelogic.

Melbourne and Sydney had the lowest rental yields at 2.8 and 2.5 per cent respectively.

Record lows were also reached in Brisbane at 3.99 percent, Hobart 4.01 per cent and Canberra 3.99 per cent for August.

Although rent went up in the past year in all capital cities purchase prices outstripped this massively, increasing $2000 a week on average.

Corelogic research director Tim Lawless said unit rents were weaker than houses.

“The weaker trend in unit rents across Australia’s two largest cities is likely a reflection of their greater exposure to temporary overseas migrants as a source of rental tenancy, especially foreign students who would normally underpin inner city high rise rental demand,” Lawless said.

Annual change in house rent 

^Source: Corelogic hedonic home value August 2021

“The sharp drop in demand due to closed borders has been exacerbated by high supply levels as both cities come out of an unprecedented surge in inner city apartment construction.”

Lawless said rent in Darwin and Perth had likely peaked but there was room for growth in other markets.

Meanwhile Capital Economics economist Ben Udy said dwelling prices were approaching their peak.

“The drag from the current lockdowns on the housing market won’t last, but we expect house price growth to slow in earnest next year as affordability constraints bite,” Udy said.

This could give the rental market time to catch up with, an extremely tight rental market, recorded in Domain’s report for July.

It showed most cities were close to record lows in vacancy rates with the exception of Melbourne and Sydney, however those markets were improving.

The exception to slow rental growth was in Byron Bay and coastal locations in Victoria however property prices in these locations were still keeping yields down.

 

Article Source: www.theurbandeveloper.com

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Dexus Lists Pacific Fair, Macquarie Centre Stakes

Fund manager and office landlord Dexus has listed stakes in two of the country’s biggest and best-known shopping centres as investors ready themselves for a potential retail rebound once international borders reopen.

The stakes are a quarter interest in the Macquarie Centre in Sydney’s north and a 20 per cent interest in Pacific Fair on the Gold Coast.

If realised, the deal could reflect one of the biggest shopping centre deals in the wake of the pandemic, netting Dexus and its investors upwards of $700 million.

Dexus picked up the interests when, in April, it merged its wholesale fund with a $5-billion AMP Capital-controlled vehicle to create a $15-billion fund.

At the time Dexus pledged to bring liquidity to investors in the wholesale vehicle.

Dexus Wholesale Property Fund has appointed CBRE’s Simon Rooney, together with Nick Willis and Sam Hatcher of JLL, to steer the expressions of interest campaign.

“The positive turnaround in institutional investor sentiment and capital reallocation back to retail is in its early stages,” Simon said.

“[The turnaround] is clearly evident and is centred on assets which are considered the ‘best of the best’–criteria clearly met by Pacific Fair and Macquarie Centre.”

“We have seen a material rebasing in retail asset values over the past 12 to 18 months, together with a ‘mark to market’ rental reset.”

Pacific Fair is the country’s fifth-largest shopping centre spanning around 150,000 square metres.

The centre underwent a $670-million refurbishment five years ago, to elevate it a “luxury destination”, adding 46,500sq m of retail space, about 100 specialty stores and an extra 1300 car parks.

The shopping centre is now home to internationally recognised brands such as Louis Vuitton, Prada, Hermes, Bulgari, Gucci, and Tiffany and Co.

Pacific Fair sits in the heart of the Gold Coast on a 16.6ha site, next to The Star Casino and the Broadbeach retail, conference and accommodation precinct.

In Sydney, the Macquarie Centre spans 135,000sq m and is near the Macquarie Metro Station and Macquarie University, in the heart of the Macquarie Park business park.

The redeveloped shopping centre is recognised as one of Sydney’s premium shopping destination with more than 360 specialty stores over four levels, anchored by Myer and David Jones.

The centre currently has plans for 1000 new apartments in four tower blocks and the centre could also be further overhauled.

“They are more than just shopping centres—their scale and integration in the market make them core pieces of infrastructure that shape their respective markets,” Willis said.

“Retail has performed well coming out of lockdowns, and the best quality assets will continue to outperform.”

Willis said the listings, the first super regional shopping centre opportunities to be offered in Australia since 2019, would attract interest from leading Australian retail owner managers, institutional funds and heavyweight offshore investors.

In late 2019, Lendlease sold a half share in Adelaide’s Westfield Marion for $670 million to the property trust sponsored by Singapore Press Holdings while Scentre Group purchased a half stake in Garden City mall in Western Australia from an AMP Capital managed fund for $575 million.

Last year, Lendlease’s Australian Prime Property Fund listed a 50 per cent stake in Brisbane’s $1.7 billion Westfield Carindale, in the city’s south-east.

 

Article Source: www.theurbandeveloper.com

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What’s within walking distance from Bide apartments

Nestled in the heart of Newstead, the 89 residence apartment tower has been designed as an urban getaway just 3 kilometres north-east of the Brisbane CBD

The latest inner-Brisbane apartment project by the local developer Dibcorp Properties is Bide, which is located in the heart of the upmarket riverfront suburb of Newstead.

The location of the 89-apartment development Bide, at 21 Longland Street, puts it just a stone’s throw from the Brisbane River, and the convenience of the Teneriffe Ferry Wharf which connects the suburb to the CBD.

Residents will have immediate access to Gasworks Plaza on the adjoining Skyring Terrace riverfront street, which is home to a Woolworths and a numb er of other stores, as well as restaurants, cafes and coffee shops like Ping Pong, Yolk and Campos Coffee.

On Longland Street there’s the popular eateries include Smoky Moo, The Defiant Duck, Drum Dining and the Milky Lane Newstead.

Cutting across Longland are a number of side streets like Stratton and Wyandra, which have a number of retailers and boutiques for residents to explore like a Think 24hr fitness, Smile Studio, and Brisbane Skin.

Bide 21 Longland Street, Newstead QLD 4006

Designed in collaboration with architects from Twohill & James, Lat27 and Wiltshire Stevens Architecture.

Nestled in the heart of Newstead, the 89 residence apartment tower has been designed as an urban getaway just 3 kilometres north-east of the Brisbane CBD.

It is the latest part of the suburb’s transformation to an up-market residential suburb belying its industrial past. Timber yards, asbestos works, wharves and woolstores once dominated much of the predominantly commercial suburb, now one of the most sought-after apartment spots in Brisbane.

Bide is just a short distance away from Route 25 as well as the Teneriffe Ferry wharf and bus stations for those who choose public transit. As such it is right by the Brisbane river.

The proximity to schooling, as well the large three-bedroom apartments on offer, make Bide attractive for families. The nearby educational institutions include:

• Torrens University Australia – Satellite campus – 1.4km away
• University of Queensland – Satellite campus – 1.9km away
• Queensland University of Technology – Main campus – 3.3km away
• New Farm State School – Public School – 1 km away
• Music Industry College – Private School – 1.1km away
• Angelorum College – Private School – 1.1km away

Dibcorp has offered residents the opportunity to work hand in hand to tailor the layout, configuration and finishes of their apartment.

Apartments inside feature open-plan living and dining, a balcony space and a study nook in some apartments for working from home.

Inside, residents can enjoy 600 sqm of amenity across two levels, including barbeque facilities, private cabanas, landscaped areas and seated space throughout.

 

Article Source: www.urban.com.au

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Gold Coast Housing Market Insights: August 2021

The Urban Developer’s latest Gold Coast housing market insights reveal that the continued population shift has lifted prices to their highest point in 30 years.

This resource, to be updated monthly, will collate and examine the economic levers pushing and pulling the Gold Coast’s housing market.

Combining market research, rolling indices and expert market opinion, this evolving hub will act as a pulse check for those wanting to take a closer look at the movements across the market.

Gold Coast median house and unit price values 

Type	Month	Quarter	Annual	Median
All	2.0%▼	6.9%▼	22.2%▲	$695,489▲
Houses	2.2%	7.3%▼	24.7%▲	$847,237▲
Units	1.6%▼	6.1%▲	17.7%▲	$516,220▲

^Source: Corelogic Hedonic Home Value Index – July

The city has been in high demand from sea-change buyers with elevated household savings, drawn to increased affordability in south-east Queensland compared to rival markets in Sydney and Melbourne.

The latest Corelogic home value index shows that Gold Coast dwelling prices have risen by 2 per cent on a rolling four-week basis.

Among the biggest risers for dwelling values in the past six months have been Burleigh Heads, Carrara and Labrador, where double-digit rises have been recorded.

Gold Coast house prices remained steady with 2.2 per cent growth during July, pushing it up 7.3 per cent for the recent quarter and 25.7 per cent for the year to date.

The current median value for dwellings is $695,000 which is $16,000 higher than just a month ago.

The median house price of $847,000 continues to attract interstate migrants from the larger markets of Sydney, where the median is now $1.25 million, and Melbourne at $945,000.

The current median unit price on the Gold Coast is $516,000, which is $60,000 more than recorded at the turn of the year.

Renewed apartment development activity is now focused on the future route of the light rail between Broadbeach and the border, particularly Burleigh and Palm Beach.

Gold Coast’s housing market: policy updates

Federal budget 2021: property hits and misses

The Federal government rolled out its latest budget in May, a single-year plan centring on aged care, childcare, infrastructure, investment tax breaks and more help for home buyers as it tapers off the record spending from last year’s budget.

The budget will use superannuation incentives to help younger Australians enter the property market and older Australians vacate the family home.

While there have been some significant aids to the property industry and construction sector, experts have also noted some missed opportunities.

Queensland budget announcement

The state government plans to establish a $1-billion housing investment fund according to its 2021-22 budget.

The fund is expected to generate $160 million in four years which will be used to “drive new supply to support current and future housing needs”.

A further $265 million would be spent delivering satellite hospitals to Bribie Island, Caboolture, Brisbane South, Pine Rivers, Gold Coast, Ipswich and Redlands.

Brisbane Olympics to push property market’s limits

Brisbane house prices will hit the $1-million median well before the 2032 Olympics with suburbs near venues tipped to move up to $3.9 million.

Property projections from PRD Research indicate the median price would reach $1.7 million by 2033 and would be “immensely” boosted on the Gold and Sunshine coasts.

Meanwhile, prices on the Gold Coast and Sunshine Coast hit $792,000, up 18.2 per cent on last year, and $825,000 up 23.1 per cent, respectively.

What the experts are saying about the Gold Coast’s housing market

Nicola Powell
Chief of Research
Domain

“What we have seen and what’s very evident for Queensland is the Sunshine Coast and the Gold Coast are very up there, and this data is really telling of who is active in the market.

“But 25 per cent of suburbs with higher property price growth than salaries is quite a strong milestone for Queensland.

“I think in the years leading up to the Olympics we’ll probably see even greater demand for properties there.”

Andrew Bell
Surfers Paradise Managing Director
Ray White

“I have never seen anything like it in my 40 years in the industry, and it’s results like these that underpin just how strong the Gold Coast market is.

“Interstate buyers have long recognised how undervalued the Gold Coast market is, given that we are now the sixth-largest city in the country.

“Now we are beginning to see locals cotton on to how valuable the Coast is, which they had underestimated in the past, and they are well aware of the strong demand from interstate markets who see the Gold Coast as excellent value.

“Given the trajectory of the Gold Coast market, buyers are realising that it’s in their best interest to allow market forces to determine the value of their property which often greatly surpasses their expectations.”

 

Matthew Schneider
Gold Coast Director
Urbis

“Consumer sentiment and ‘FOMO’ has well and truly returned to the Gold Coast property market and is playing a big role in the market.

‘Off the back of that, there is some real tightness in the supply for people who want to live in house and land packages.

“If people are anxious about the level of activity, development and growth on the Gold Coast that has existed over the last couple of years, the reality is we actually have to find a way to grow smarter and pick up the pace of delivering product if we are to meet those long-standing population targets.

 

Brook Monohan
Founder
Mosaic Property Group

“While prices for properties have increased, we believe the pace of growth will slow towards the back end of this year and we expect the market to experience only minimal increases in early 2022 followed by a slowdown and flattening of the market thereafter.

“This will likely be followed by a potential second leg up once the pandemic is well and truly behind us, unlikely before 2023.”

Gold Coast housing market forecasts

ANZ similarly predicts at the national level Australian house prices will rise by a strong 17 per cent through 2021, before slowing to 6 per cent growth in 2022.

CommBank forecasts dwelling prices will rise 8 per cent in 2021 and 6 per cent in 2022, with house prices to rise 16 per cent in that time and unit prices by 9 per cent.

Westpac has revised its property price forecasts, tipping values to rise 15 per cent in 2021 before slowing to grow by per cent% next year.

NAB has also upgraded its forecasts for dwelling prices—now expected to grow around 19 per cent in 2021 and per cent% in 2022.

Gold Coast auction clearance rates 

Week	Clearance rate	Total Auctions
Week ending 4 July 2021	65.5%	91
Week ending 11 July 2021	69.4%	63
Week ending 18 July 2021	60.6%	67
Week ending 25 July 2021	70.0%	60

^Source: Corelogic Auction Clearance Rates – July

For every 100 houses that went to auction on the Gold Coast during recent weeks, only three failed to find a buyer.

Some of the Coast’s biggest real estate agents are now struggling to keep up with the interest, with some agents reporting that 60 per cent of properties set for auction are selling before they are actually listed.

Figures from Corelogic show that Arundel, Coombabah and Gilston recorded growth of 10 per cent in the last three months, significantly outpacing well-heeled suburbs like Burleigh Heads, Hope Island and Palm Beach.

The top growth suburb for the quarter was Currumbin Valley, where the median house price climbed 11.9 per cent to reach almost $1.5 million.

Nine suburbs in total reached double-digit price growth in the three months to the end of June, with Coombabah rounding out the list of the ten top performers with a rise of 9.9 per cent.

Other suburbs to perform well included Merrimac (9.5 per cent), Reedy Creek (9.4 per cent) and Labrador (8.8 per cent).

New research by REA Group revealed units returned the biggest gains for investors in the following Coast suburbs: Surfers Paradise; Southport; Biggera Waters; Coombabah; Carrara; Mudgeeraba; and Nerang.

Gold Coast residential rental vacancy rate  

City	July 2021 vacancy rate	Monthly % change
Gold Coast	0.9%▲	0.2%▲

^Source: SQM Research – reference period July

Rental stock on market 

City	July 2021 vacancies	Vacancy net change
Gold Coast	2843▲	43▲

^Source: SQM Research – reference period July

Gold Coast rent prices 

Type	Rent	Monthly % change	Annual % change
Houses	$747.00▼	-0.4%▼	15.9%▲
Units	$497.00▼	-0.4%▼	6.6%▲

^Source: SQM Research – reference period July

While owner-occupiers are seeking downsizing alternatives in coastal areas, investors are returning to the Gold Coast in the wake of historically low rental vacancy rates.

Brisbane’s vacancy rate dropped from 2.1 per cent to 1.7 per cent from the previous quarter, comparatively the Gold Coast’s has loosened slightly from a static 0.6 per cent to 0.9 per cent.

Carrara posted the strongest annual growth in rental demand of 26.2 per cent, followed by Biggera Waters at 19.8 per cent.

Southport’s rental demand grew by a more modest 7.7 per cent, with the CBD suburb hard hit by Covid-19’s exodus of international students.

But the centrally located suburb still delivered a healthy investor cashflow of $596.18, with capital growth of 15.6 per cent.

REA economist Paul Ryan said unit investors achieving a rental yield above 5 per cent were “doing very well”.

“House prices have risen, and that is pushing down rental yields,” Ryan said.

“That doesn’t make houses a bad investment, they may just not be bringing in the same yields or cashflow.”

Ryan said growth in rental demand for units on the Gold Coast, often cheaper to rent [than houses], are low maintenance and well located, had been “outstanding”.

“And with Covid, we have seen a lot of people moving to a region, and then renting before buying,” Ryan said.

Queensland building approvals 

Dwelling	Approved	Monthly % change
Houses	2015▼	-25.2▼
Units	2996▼	-18.4▼

^Australian Bureau of Statistics – Most recent reference period June (suspension of trend series between May 2020 and July 2020 due to Covid-19)

A significant dip in housing approvals has added fuel to the already hot property market, despite a lockdown softening.

Australian Bureau of Statistics data shows the number of private-sector houses approved dropped 11.8 per cent in June, following the downward trajectory since the end of the Federal government’s HomeBuilder stimulus package.

Across both houses and units the number of dwellings approved fell 6.7 per cent, compared to a 7.6 per cent decrease in May.

Queensland and Western Australia experienced the biggest decline in both house and unit approvals.

In Western Australia overall dwellings approvals dropped by 30.5 per cent, followed by Queensland at 18.4 per cent and Tasmania at 14.9 per cent.

In the 2020-21 financial year total dwelling approvals nationally were 27.3 per cent higher than in 2019-20 financial year, driven by a 42.8 per cent surge in private sector house approvals.

Dwelling approvals increased more than 88 per cent in Western Australia over the financial year, while in Queensland it was up 36.7 per cent and Tasmania experienced a 33.9 per cent increase.

Queensland home loan lending indicators 

Region	First home buyer loan commitments	First home buyer ratio – dwellings	First home buyer ratio – housing
Queensland	2835▼	35.8%▼	31.4%▼

^Source: Australian Bureau of Statistics – most recent reference period June

Owner-occupier home buyers propelled a surge in housing credit in June.

Housing credit lifted 0.7 per cent—the most in 11 years—to be up 5.3 per cent when compared to a year ago, the strongest annual pace in two years.

Owner-occupier housing credit jumped 0.9 per cent, the biggest gain in five years, to be up 7.2 per cent on a year ago—the strongest annual growth rate in two years.

Investor housing credit rose by 0.3 per cent to be 2.0 per cent higher on a year ago, which is the strongest annual rate in three years.

“Deteriorating affordability is likely to weigh on owner-occupier demand, and a tightening in macro–prudential policy settings will restrain the supply of credit,” Westpac chief economist Bill Evans said.

“We expect housing credit growth to exceed 7 per cent by the first half of 2022, triggering a likely policy intervention. The precise response will depend on the composition of lending over the next year.”

Most economists now expect the RBA to begin raising rates over 2023 and 2024 to a natural rate of about 1.25 per cent.

Queensland interstate migration 

Region	March (quarter) 2021 arrivals	March (quarter) 2021 departures	December (quarter) 2020 net
Queensland	28,500▼	21,465▲	7035▼

^Source: Australian Bureau of Statistics – March quarter 2021

With a population of roughly 3.7 million, Queensland’s south-east is Australia’s fastest-growing zone.

The Gold Coast and south-east Queensland were direct beneficiaries of Victoria’s extended lockdown last year, with a dramatic population shift north.

Australian Bureau of Statistics data for June revealed Victoria’s population fell by 12,700 while the number of interstate migration to Queensland increased by 30,000, or 2 per cent.

Before the pandemic, Gold Coast city planners were working to a framework that the population would reach a million by 2041, delivering 6000 dwellings for approximately 15,000 new arrivals per annum.

Queensland’s population is now expected to surge by more than a quarter of a million people in the next four years, according to forecasts in the federal budget, as people continue to flood in from other states.

Additional forecasts suggest it will top 5 million by the middle of the next decade.

 

 

Article Source: www.theurbandeveloper.com

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The Gold Coast suburbs where property is tipped to boom next

Meteoric house price hikes across key Gold Coast suburbs have sent the city hurtling towards a golden property era, and while it’s now almost impossible to nab a home for under a million dollars in most beachside spots, experts have named the next pockets tipped to boom.

Property experts have revealed Tugun, Mermaid Waters, Robina and Carrara are four of the top spots to spend your property dollars, after nearby suburbs Miami, Burleigh Heads, Tallebudgera and Bundall all posted jaw-dropping price growth of up to 38 per cent in a year, according to the June Domain House Price Report.

Houses in Miami climbed to $1,066,250 after the suburb experienced 38.5 per cent annual growth, while in Bundall, house prices shot up by 32.5 over the same period to $1,377,500.

Tallebudgera and Burleigh Heads each posted house price rises of just over 30 per cent to reach $1.2 million and $1.116 million while Mermaid Beach climbed close to the $2 million mark, rising by 17.9 per cent to $1.91 million.

Meanwhile, in Tugun, house prices rose almost 25 per cent to $880,000 – and by 5.7 per cent in Robina to $713,500.

In Mermaid Waters, house prices jumped 28.7 per cent to $1.063 million and, in Carrara, by 16.6 per cent to $642,000 – leaving plenty of room for gargantuan growth as stock levels remain tight and southern eyes increasingly look north to the sun-drenched city.

“From Mermaid (Beach) down to Palm Beach, Miami and Burleigh then inland to Tallebudgera we’ve seen extremely strong growth … those suburbs have really accelerated … and now you’re struggling to find anything under a million,” PRD Burleigh Heads director Adam Van Leeuwen said.

The top picks for the next boom suburbs on the Gold Coast

Suburb	Median house price
Tugun	$880,00
Mermaid Waters	$1,063,000
Robina	$713,500
Carrara	$642,000
Southport	$655,000
Ashmore	$680,000
Helensvale	$760,000

Data provided by

“We’re seeing record growth month on month … but I also think we have an extended period of growth coming towards our market.

“You’ll see the light rail come down to Burleigh in the next couple of years and lots of southern investors are looking to invest near that so I believe the best performing areas in the next 12 months will be Mermaid Beach – that will have a big kick this year due to some high prices coming through and the lack of supply – and then Tugun is going to see a lot of growth as it’s the most affordable suburb close to the beach and there’s a lot of infrastructure heading towards it.

“For buyers looking for homes under a million dollars, Tugun is going to be the spot … and there’s a lot of restaurants and cafes there now.”

Mr Leeuwan said with up to 50 groups flocking physically or virtually to most open homes amid record-low stock levels, snapping up a prime patch was a tough task.

“Buyers now know they have to see a property on the day and make a decision on the day or they miss out … and we’re increasingly selling to Sydney and Melbourne buyers – the numbers are much stronger than before and they are happy to buy virtually,” he said.

There are still ways into the Gold Coast property market without spending millions – you just have to know where to look. Photo: Kollosche

Ray White Surfers Paradise Group chief executive Andrew Bell said the city had previously been dubbed a boom-or-bust town for holidaymakers but with the stars aligned for a decade of significant growth it’s now seen as one of the nation’s most liveable cities.

“The Commonwealth Games created an injection of about $16 billion worth of infrastructure … and then we also saw private enterprise and the upgrades to shopping centres, and that sparks confidence … but COVID has driven more people to the region looking for an alternative,” Mr Bell said.

“Every time there’s been a lockdown down south there’s been a significant upswing here … and it’s across the board.”

But while key suburbs such as Palm Beach, Main Beach and Miami have borne the brunt of that upswing, Mr Bell said, demand was flowing out to surrounding suburbs and simultaneously offering a glimpse into the hot spots set to boom.

“In the apartment market the ‘kick-on’ will be in Broadbeach and Surfers Paradise … and then we’ll see good growth in Tugun and Currumbin,” he said.

“In housing, we’re seeing suburbs like Mermaid Waters and Sorrento … being identified as up-and-coming areas that are more affordable. Ashmore is still affordable as well, and you’ve got Helensvale and Carrara, and you can still get some good value at Robina.

“I always put down Southport there as well as there are some beautiful areas, and some of those older cottages are affordable.”

Despite a year of strong growth, Harcourts Coastal agent Christine Tucker said, her pick for the Gold Coast’s next hot spot was Mermaid Waters, with the pocket perfectly positioned to skyrocket in the years ahead.

“The best-performing suburbs are anywhere close to the beach … and Mermaid Waters has done really well. It’s just such a central location and it’s still close to the beach but you’ve got Bond University and you’ve got Pacific Fair close by,” Ms Tucker said.

She said she also expected the apartment market to further strengthen off the back of soaring house prices, with central hubs along the coastline tipped to cash in soon on that once-struggling sector.

Looking for that elusive bargain on the Gold Coast? Here are our top three picks – but you’ll need to be quick.

124/136 Palm Meadows Drive, Carrara

Offers over $670,000 

124/136 Palm Meadows Drive, Carrara QLD 4211

Perched a short drive from the heart of the Gold Coast, this immaculate three-bedroom home boasts a study, two bathrooms and a galley-style kitchen. It’s in a suburb that’s been tipped for major price growth.

20 Dilgara Street, Tugun

Offers over $949,000 

20 Dilgara Street, Tugun QLD 4224

Walk to the golden dunes of Tugun in just a few minutes from this four-bedroom family home on a 506-square-metre block. It features an outdoor undercover entertainment area and two bathrooms.

112 Thorngate Drive, Robina

Offers over $849,000 

112 Thorngate Drive, Robina QLD 4226

Sitting on a whopping 784-square-metre block, this three-bedroom, two-bathroom house is located in an up-and-coming hot spot and has a pool to boot. It’s currently rented out for $850 per week.

 

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Brisbane’s best property buys: Six must-see homes under $700,000

Here’s our pick of some of the best property buys in Brisbane right now.

3/888 Wynnum Road, Cannon Hill 

3/888 Wynnum Rd Cannon Hill QLD 4170 

Eight is one of the luckiest numbers in many cultures, promising owners of this inner east home fortuitous times ahead. The two-bedroom, two-bathroom, 147-square-metre apartment certainly has a well-positioned tiled ground-level courtyard, ready to host soirees under the Brisbane sun or starlight. It is a massive 7.8 metres by 6.9 metres and faces the lush green ovals of Bill Cash Memorial Park.

$470,000-plus

Private sale

LJ Hooker, Ashleigh Hansom 0448 742 538

2404/179 Alfred Street, Fortitude Valley 

2404/179 Alfred Street, Fortitude Valley QLD 4006 

Bridge-spotters get an eagle’s nest view of one of Queensland’s most iconic at this sky home. The two-bedroom, two-bathroom apartment comes with 78 square metres of title and uninterrupted views of the Story Bridge and inner-cityscape. It claims a lofty level 24 vantage point and its edgy designer tower has a suite of you-beaut perks for residents, including a pool, timber sun platforms, a state-of-the-art gym, cinema room and lounge area.

$475,000-plus

Private sale

Ray White, Kai Liu 0430 568 851

42 Bulgin Avenue, Wynnum West 

42 Bulgin Avenue, Wynnum West QLD 4178 

Multigenerational living is catered for at this three-bedroom high-set house, on the market for the first time since the mid-1970s. Upstairs the floor plan maps out three bedrooms, a living, dining, a sunny front porch, and a shady rear terrace to take in the green landscape of the back yard. Downstairs, buyers get a second kitchen, another toilet and a miscellaneous room that could function as a study, another bedroom or studio.

$660,000-plus

Private sale

Raine & Horne, Chris Vote 0433 411 540

5/370 Zillmere Road, Zillmere 

5/370 Zillmere Road, Zillmere QLD 4034 

Sports nuts hunting a first home or rental asset will find good form at this two-bedroom pad in its neat three-storey brick walk-up. The apartment is a punt kick from O’Callaghan Park and the suburban police-citizens youth centre. It has a garage and has been freshened up with new carpets, lights and paint. The local primary school is about 600 metres away.

$250,000-plus

Private sale

Ray White, Tiffany Fraser 0451 348 787

5/48 Hood Street, Sherwood 

5/48 Hood Street, Sherwood QLD 4075 

This quirky one-bedroom rear apartment in the city’s leafy west riverside belt presents buyers with 71-square-metres including a covered timber deck with a private garden outlook. There is scope to modernise the interior, although the exposed brick walls and wood-grain kitchen cabinets are charming in their own retro-rustic way. The local primary school is diagonally a block away.

$290,000-plus

Private sale

Williams Real Estate, Nick Williams 0419 379 771

9/14 Military Close, Annerley 

9/14 Military Close, Annerley QLD 4103 

At face value, this is a screaming good deal for three levels of home less than six kilometres from the CBD. The suburb’s median sale price for a three-bedroom house is $783,000, based on 48 sales in the past 12 months. House-like in size, this 168-square-metre townhouse has access to the estate’s infinity pool and residents’ entertainment deck. Junction Park State School is about 200 metres away to the north-west.

$649,000

Private sale

Place, Nick Bekker 0421 461 520 

 

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