Put away the crystal ball – our experts are here to reveal all.
The state of the property market has been dominating our newsfeeds for as long as we can remember. And while our southern neighbours might still be clawing their way out of the real estate trenches, here on the Gold Coast, the year ahead looks as bright as our world-famous beaches. We chat to Director, Michael Kollosche, and leading real estate agents, Eddie Wardale and Ryan Ward, who reveal what they believe is in store for our local marketplace over the next 11 months.
The Strongest Start We’ve Seen in 10 Years.
“The market has definitely seen the strongest start we’ve had in the last decade,” Michael confirms. “There is a lack of supply, interest rates are at all-time lows, and there has been a lot of capital come into the market.”
Eddie echoes these sentiments, adding that January picked up where a strong 2019 finished off. “There’s still confidence in the market and a number of very, very good transactions occurring,” he explains. “The level of interest has continued from what we saw at the end of 2019. You only have to look at the recent auction of 47 Jefferson Lane, Palm Beach, which sold for $450,000 above reserve.”
“It certainly feels like the preamble of 2006, 2007 when the market started to really kick off,” Ryan adds. “We’ve got buyers around, and there’s minimal stock.”
Low Supply, High Demand
“Broadly speaking, we’re finding across all markets and price points there’s been a decrease in days on market and increase in buyer activity,” Michael reveals
Ryan concurs, adding that it’s only just the start of what we can expect when it comes to supply and demand.
“As this year goes, on we’ll see competition really kick in,” he says. “There’s not many people coming on the market, and anyone that I’m speaking to is putting their money into property and not selling. So, I think stock’s going to tighten up.”
“Money’s no good in the bank”
“Money’s no good in the bank anymore,” Ryan advises. “They’re only getting a few percent on their yield so they’re buying property and I think that’s always strong.”
Eddie agrees that the banks are loosening their grip, which will positively impact the Gold Coast market. “We will see a lot more activity and transactions occurring because lenders are definitely freeing up money more.”
Suburbs to watch in 2020
“Suburbs that are going to perform well look like Palm Beach, Burleigh Heads, Mermaid Beach, Isle of Capri and Broadbeach Waters.” Eddie states, with Ryan predicting the beachside suburbs will be the ones to watch.
Final Thoughts – Act Now or Be Prepared to Spend More Later
“We’ve seen a firming of prices and I think buyers are realising if they don’t act fast, property prices are going to climb steadily,” Michael advises.
“I’d suggest to anyone in the market at the moment or looking to purchase a property, that they get a little bit more aggressive about their timeframes and the offers they’re making,” he adds. “In 6 month’s time, they’ll probably kick themselves because its cost them 10%.”
If you’d like to take advantage of the current market, or would like an obligation-free chat with one of our experienced, expert agents who specialise in selling prestige properties on the Gold Coast, contact us today on +61 7 5676 6474 or email [email protected]