Gold Coast Real Estate Market Update

Market Review

As I see it , there are 3 fundamentals at work in the market that will see the Gold Coast property market hold well.

Firstly, as financial markets show weakness due to exposure to complex financial instruments people will move to assets they understand like cash and property. Residential property is REAL. You can paint it, put a sledge hammer to it and amazingly you can even live in it. It is real and tangible, it not a “collateralized debt obligation”, it is not smoke and mirrors or full of hot air. There will continue to be a flight to real assets.

Secondly, the old hammer of population growth. This is even more important now the Australian Bureau of Statistics has revised up the population growth for regional Queensland. By 2051, regional Queensland will have an ADDITIONAL 2,300,000 residents, the bulk of whom will be on the Gold and Sunshine Coasts. Compounding this, troubles with the “development financiers” on the Gold Coast (and some developers) means projects will stall. Delaying supply further drives prices north, especially with strong and increasing demand brought on by population growth.

Finally, we have also turned the corner on interest rates. More cuts may be required, but the interest rates are coming down. This will further stimulate demand.

It certainly is an interesting time to be in Gold Coast Real Estate.

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