Hi Guys
An article from Michael Yardney's latest newsletter especially for any NZers wanting to invest on the Gold Coast.
Sounds abit like the Auckland CBD
Regards
An article from Michael Yardney's latest newsletter especially for any NZers wanting to invest on the Gold Coast.
BEWARE OF AN OVERSUPPLY ON THE GOLD COAST
I saw it coming – a huge oversupply of apartments on the Gold Coast. We are lucky enough to holiday on the Gold Coast twice a year and we will be up there much more often now that Pam's daughter Paula and our grandchildren have moved up there. I have been frequently tempted to buy a property up there but have avoided it because of that market's booms and busts, and it is happening again…
Just as many residential markets are turning down, the Gold Coast is facing an apartment glut with about 1,363 unsold units representing about 17 months of supply. As well as this there are 3,765 units under construction.
Prices have not fallen yet, but I predict they will. This will further compound the problem as valuations will be below purchase costs for many off the plan purchasers. The Gold Coast market is mainly driven by investors from Sydney and Melbourne buying apartments and the investor market has quietened significantly.
If you are going to take advantage of any drop in prices in this market the three areas that should continue to perform well in the long term are: Broadbeach, Main Beach and Surfers Paradise. Avoid secondary buildings in secondary locations. Good owner-occupier buildings in good locations probably won't be affected as much as investor class buildings.
I saw it coming – a huge oversupply of apartments on the Gold Coast. We are lucky enough to holiday on the Gold Coast twice a year and we will be up there much more often now that Pam's daughter Paula and our grandchildren have moved up there. I have been frequently tempted to buy a property up there but have avoided it because of that market's booms and busts, and it is happening again…
Just as many residential markets are turning down, the Gold Coast is facing an apartment glut with about 1,363 unsold units representing about 17 months of supply. As well as this there are 3,765 units under construction.
Prices have not fallen yet, but I predict they will. This will further compound the problem as valuations will be below purchase costs for many off the plan purchasers. The Gold Coast market is mainly driven by investors from Sydney and Melbourne buying apartments and the investor market has quietened significantly.
If you are going to take advantage of any drop in prices in this market the three areas that should continue to perform well in the long term are: Broadbeach, Main Beach and Surfers Paradise. Avoid secondary buildings in secondary locations. Good owner-occupier buildings in good locations probably won't be affected as much as investor class buildings.
Regards