This Week in Real Estate – 15 December 2023
Gold Coast Homes In Demand
The latest Sight Unseen report by virtual inspection platform, Little Hinges, reveals Gold Coast properties are attracting the highest number of virtual inspections by interstate buyers.
Southeast Queensland in general was very popular with the analysis showing 35% of those doing virtual inspections on the site were looking at Gold Coast properties, closely followed by the Sunshine Coast (34%) and Brisbane (28.9%).
When it comes to international buyers the Gold Coast (8.5%) was second only to the Sunshine Coast (9.2%).
Analysis by PropTrack shows properties are selling faster in the Gold Coast’s western suburbs than its beach suburbs.
PropTrack Senior Economist Paul Ryan says there is growing demand for more affordable properties in this corridor on the Gold Coast.
“In an environment where interest rates have risen extremely quickly and housing affordability is sitting at its lowest level in three decades it isn’t a surprise to see buyers getting priced out of the inner-city areas and looking further afield to those affordable suburbs,” he says.
New Shops For The Gold Coast
Gold Coast City Council is set to approve a new shopping centre development, although at a reduced size to what was initially proposed.
The Gilston Lifestyle Village development was originally planned to be 25,000 sqm, but has now been reduced to 2500 sqm more in keeping with the rural nature of the location.
Councillor Glenn Tozer says there is significant support in the area for a small-scale neighbourhood centre.
“Generally my experience in the community has been that probably 80% in the community have said we’d like a cafe, a corner store and maybe some medical facilities, things like that. Which is what it has been approved for,” he says.
“In the 2003 City Plan, the neighbourhood centre was effectively designated just north of this site, which has now got a playground on it. So we’re effectively honouring almost 20 years of saying that there should be a neighbourhood centre by delivering a neighbourhood centre.”
Where Prices Will Rise The Most
Home prices are tipped to set new records in 2024, with the smaller capital cities of Brisbane, Perth and Adelaide expected to lead the pack.
PropTrack’s December Property Market Outlook report says nationally prices will grow between 1% and 4% over the next 12 months.
PropTrack director of economic research Cameron Kusher expects the trends that fuelled prices in 2023 will continue in 2024.
He says stock levels will remain low, buyer demand will remain high and there will be a shortage of new construction all at a time of strong population growth.
Kusher also stays the planned stage three tax cuts, due to come into effect from the middle of next year, could also leave more money in buyers’ pockets and lead to further demand.
“In Brisbane, Adelaide, and Perth, total listings were more than 30% below their November decade average,” Kusher says.
Kusher says Perth (+5% to +8%), Adelaide (+4% to +7%), and Brisbane (+3% to +6%) will be the best performers.
At the same time Sydney prices are expected to rise 2% and 5% in 2024, and Melbourne between 1% and 4%.
Where Properties Sell The Fastest
High demand means properties in some locations are selling in as little as seven days, according to a new report by Domain.
In Western Australia the fastest selling location is Leda, with an average of just eight days on market before a sale.
In New South Wales, Normanhurst and Dean Park properties sell on average within 13 days on market.
In Vitoria, Watsonia North homes sell on average within 21 days on market.
In Queensland, Brendale homes sell within 18 days on average. The suburb has a very small housing market, so properties are snapped up quickly once listed for sale.
In the ACT, homes in Fraser sell on average within 31 days while South Australia’s fastest-selling suburb is Hillier where properties change hands on average within 39 days.
Tasmania’s fastest-selling suburb is Rosney with properties changing hands on average in 22 days, while in the Northern Territory Nakara is the fastest seller with properties on market for an average of 74 days.
Where Rents Will Rise The Most
Perth is set to be hit with Australia’s highest rental increases in 2024, while Hobart will have the smallest, according to new analysis by Finder.
It says rents will increase by 9.5% in Perth by the end of next year.
Finder head of consumer research Graham Cooke says Hobart rents are expected to increase by only 3%.
Melbourne rents are tipped to rise by 6.8% while both Sydney and Brisbane will rise by 6.5% and Darwin by 5.5%.
The analysis says Adelaide rents will rise by 5%.
Cooke says the Finder Consumer Sentiment Tracker shows 42% of renters are already struggling to pay their rent.
“Much of the conversation around rate rises focuses on homeowners, but it’s actually renters who are proportionally feeling the impact more, as they deal with flow-on rent increases,” he says.
“Further rent increases won’t be welcome news for those struggling.”
Analysts predict rents will continue to rise despite a Federal Government announcement that it will scale back immigration to more “sustainable levels”.
QUOTE OF THE WEEK:
PropTrack Senior Economist, Paul Ryan
“In an environment where interest rates have risen extremely quickly, and housing affordability is sitting at its lowest level in three decades it isn’t a surprise to see buyers getting priced out of the inner-city areas and looking more further afield to those affordable suburbs.”