The Gold Coast ranks as one of the top luxury home markets in Australia, with Brisbane also holding on to its spot
For the first time ever, the Gold Coast has secured a place among the top markets worldwide for premium residences.
The Queensland superstar placed 27th out of 46 in Knight Frank’s Prime Global Cities Index for Q2 2019, recording 1.1% annual growth in premium property prices to the end of June 2019. The report indicates that this “reflects stability and depth in the city’s established luxury home market”. There are several residential projects in the pipeline for downsizers with money to burn, which is a good sign for this market.
Vacancies have also eased up slightly in this region, with the average vacancy rate rising to 2.8%, according to the Real Estate Institute of Queensland’s vacancy rates report for the June 2019 quarter. This means the Gold Coast rental market is in a healthy place for the first time in 10 quarters.
However, the Sunshine State’s capital is not to be disregarded, as it was second only to Sydney and landed higher than Melbourne in the Prime Global Cities Index, with a ranking of 20th following 2.2% growth in the luxury market year-on-year. In the Brisbane LGA, vacancy rates also hit a healthy mark (2.8%), as did rates in Inner Brisbane (3.3%). Things were still tight in middle and outer Brisbane, however.
According to local property managers in the Greater Brisbane area, even though there is unit oversupply in this market, demand is rising to absorb more and more stock. Median rents for units and townhouses also rose in the 12 months to March 2019.
Metropole Property Strategists national director Kate Forbes attributes Brisbane’s recent positivity to an improving economy that is spurring population growth from the southern states as it is coupled with attractive rental returns and relative affordability.
“Brisbane’s economy is being underpinned by major projects like Queen’s Wharf, HS Wharf, TradeCoast, Cross River Rail, the second airport runway and the Adani coal mine, although jobs growth from these won’t really kick off for a few more years,” she says.
“But with migration rates lifting, supply under control and generally healthy levels of housing affordability, the Brisbane housing market fundamentals are looking healthier compared to most other capital cities.”
SUBURB SPOTLIGHT
MCDOWALL:
McDowall’s unit market had a good year, but this wasn’t the case for houses, as prices fell by 4.6% in the 12 months to July 2019.
Known as the home of the Raven Street Reserve bushland area, the suburb is also just 9km north of the Brisbane CBD. Both houses and units recorded growth in 2016, and the unit market sustained this positivity in the year to July 2019, with rental properties generating a 5.3% yield.
Despite a decline in prices, the demand for house rentals was strong, and rents jumped by a remarkable 5.8% to hit a weekly advertised average of $550. This was complemented by an average rental yield of 4.3%.
Location: McDowall is situated just 9km north of the Brisbane CBD
Units: The unit market performed strongly in the year to July 2019
