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July 2020 Gold Coast Property Market Update

Posted By Nicole Marsh - Buyers Agent  
30/07/2020
06:00 AM
We've just hit publish on our Gold Coast Property Market for July 2020.
So many questions about the property market right now.
In this month's market update I talk about  the current state of the market, holiday rentals, buying new and off the plan properties, mortgagee in possession sales and market information you just don't hear in the newspapers or on the radio. ...!
Locally theres lots of debate about proposed plans to move the NSW/QLD border temporarily to help manage the COVID situation.... given the current boarder runs right down the middle of the main street of Coolangatta, it's presenting some challenges for sure and you can see how easily a 2nd wave could flare up again in QLD with people living in one state and working in the other and different regulations.
Apparently all of the holiday rental accommodation on the Tweed Coast is booked out with Victorians who got to the border and couldn't get any further....
Maybe it might be the start of some longer term talks to move the border permanently.... who knows but having lived in the middle of Coolangatta in the past for some time I know what a nightmare it can be, and especially in daylight saving when there's two different time zones on one street. Is it time for a change....?
There's also lots of debate currently about the proposed light rail path through Burleigh and Palm Beach. Half of Palm Beach want's it and the other half doesn't. Either way, our mayor is less than popular with everyone! I honestly don't know how he got re-elected. 

 

Until next month, 

Nicole 

PS. Want to know the mistakes I see Gold Coast Property Buyers Make? Find out here

OR if you need some help finding your dream home or investment on the Gold Coast, here's how I can help you
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Full Transcription
Nicole:
Hi there. Nicole here from Eureka Buyers Agent and just coming to you with my July Gold Coast Property market update. Everyone wants to know what's happening on the Gold Coast and what's happening in the Gold Coast Property market at the moment. So there's lots of talk about the property cliff Australia wide and how prices are just going to fall off the edge in September. I don't know if it's going to happen. Look, none of us have a crystal ball. I've seen so many speculations about what's going to happen. So one bank came out and said that prices are going to drop by 30%. Another bank came out and said that prices were going to drop by 10%. And then another article I read said, "Oh, actually we got it wrong. And we don't think it's going to be as bad as what we all thought it was going to be." So there's just so much confusion in the market right now.

Nicole:
And that's where I'd suggest that you'd be really, really careful of your sphere of reference, so where you get your information from. According to the big newspapers, nowhere else exists outside of Sydney and Melbourne so that's where you have to be really careful where you get your information from. And the only way I believe that you can be truly informed on the market is to just get out there amongst it. Get out, go to the open homes, talk to the agents, and see how many other people are showing up at the open homes to see how quickly properties are selling for, the difference between the list price and the actual sale price. All of these things will give you clues as to what's happening. But on all accounts, every agent that I speak to, they just do not have enough stock to sell.

Nicole:
And there are so even phoning me and saying on the call, "Have you got any off market sales you can send us because we've just got nothing? We've got absolutely nothing to sell, and we've got so many buyers." So, it is really, really competitive out there at the moment on the Gold Coast. And of course, that varies from market to market and price points as well. But across the board, I'm still seeing that it's really, really competitive.

Nicole:
So I am starting to notice a few cheaper sales at the moment. And I think this is moreso just a knee jerk reaction from sellers and maybe a bit of panic, rather than the market not being prepared to pay the price that they need to, particularly at the beginning of COVID when no one knew what was going to happen or how all of this was going to unfold as well.

Nicole:
Also seeing some quite cheap holiday rental properties at the moment, particularly units. And it's to be expected because they were without an income for quite a long time when we were in lockdown. So these types of properties don't really make the best investment anyway, in my opinion. And it's not uncommon to see the same properties come up for sale every two to three years when reality sets in and massive body corporates that are $140 a week set in, and properties that people thought they were going to utilize themselves and just haven't. So these don't make the best investments. So I would certainly make sure you do your homework if you're planning on buying one of these properties at the moment.

Nicole:
The other thing that I'm noticing as well is just the massive influx of property sprukers, investment companies and marketeers, and you need to be really, really wary of buying house and land packages at the moment, or units off the plan or townhouse developments as well. And I've actually got an article coming out about this. So if you'd like a copy, just get in contact and I'll make sure that you get a copy of that when it comes through.

Nicole:
But, we don't actually know what the state of the market is going to be say in six months time when these properties settle. So you really need to be careful of buying these types of things, particularly when they're sold to any number of investors. I have seen streets on the Gold Coast where there's 10 properties in the same street up for rent. And that's not a great investment at all because there's nothing that sets your property apart from the one next door. They're the same size land, same four bed, two bath house. There's nothing there that separates it from something else. So I'd be really, really wary of buying something like this at the moment. And firstly, the government grants that are available for new builds and also the massive commissions that are paid by developers to people to sell these properties. You wouldn't believe the amount of money that they actually make out of them. So I'd be really, really wary of buying these types of properties right now and across the board.

Nicole:
So another question I've had recently is about mortgaging and possession sales on the Gold Coast, and people are sort of expecting that there'll be heaps and heaps of them, but at the moment, and once you understand the process, it all makes perfect sense. But for the banks, it actually takes about 12 months to go through that process and actually take possession of a property because they've got obviously legalities that they have to follow and notice periods to give to the owners to before they can physically go and take possession of those properties. So it does take about 12 months to go through that process. So while I'm not seeing a massive influx of those at the moment, I think that we'll probably see a few start to come through sort of mid next year, early to mid next year, once the banks have been through that process.

Nicole:
So another thing I'm noticing as well, and good news doesn't sell newspapers, so you're never going to hear any of this on the radio or in the paper. But I've just finished a renovation for a client at the moment. And all of the tradies I dealt with were absolutely flat out. So the flooring people they've just got so much work on the go at the moment. The painter was the same, the builder, the electrician. Another builder I work with, he's booked out until next year. So this is all the stuff you never hear. Even personally, we've just had shutters fitted at home, and it actually a company in Brisbane that manufactures them. And they've actually got their production plant working 24 hours a day at the moment. They've doubled their staff. And I know lots of other companies as well that are put on all new staff as well because people are at home, and they can't spend their money going on holidays at the moment so they're actually spending their money on their own houses. So that home improvement sector is really, really pumping on the Gold Coast.

Nicole:
So if you'd like to find out what's really going on in the Gold Coast Property market at the moment and in the areas and suburbs of interest to you, then feel free to get in contact. I actually offer a free 20 minute consultation by phone or Zoom. So you can book in for that by calling the office on 1-300-52-0062, or you can also book in just on the contact us page on our website. So until next time, I'll talk to you soon.