This Week in Real Estate -2 February 2024
Spit Master Plan
The popular fishermen’s market is to be retained at the Spit, under new plans revealed by the state government.
Gold Coast residents had been concerned that any redevelopment of the area would remove the fishermen’s market, but in unveiling its plans for the site, the State Government said the area would continue to be home to the local fishing fleet.
It has called for tenders for expressions of interest to redevelop the site at Carter’s Basin on the Gold Coast to include a new commercial marina and associated landside facilities.
It will cater to commercial fishing fleets and marine tourism operators in a mixed-use development. The local fishing fleet will gain renewed and reconfigured facilities.
The site includes 7000 sq m of leasable land and a 20,000 sqm seabed lease.
The neighbouring Peter’s Fish Market has been secured through a Deed of Development which includes plans for a new two-storey premises overlooking the Broadwater.
Temporary Tourist Attraction For Gold Coast
Surfers Paradise is set to gain a temporary tourist attraction on a parcel of land owned by the Sultan of Brunei.
Plans have been lodged with the Gold Coast City Council to use the land on Surfers Paradise Boulevard for an attraction called the Imaginator.
The attraction is described as having various indoor walk-through installations which provide a “multi-sensory immersive experience”.
It is expected to operate on the site for two years starting in March. The Sultan has owned the land since 1997, although nothing has been developed on it.
The plans lodged with council, show the attraction will have a moving parachute theatre in which patrons can lay on a sloping cushioned bed to watch a large projection screen.
Gold Coast mayor Tom Tate has expressed concerns over undeveloped sites on the Gold Coast being left to lay idle, sometimes for years.
The site to be used for the Imaginator has been vacant and used as a car park for decades.
Tate hopes the temporary use of the site will encourage others to consider temporary tourist offers on their under-utilised land.
Investors look set to become active again in 2024 according to the latest Australian Property Investor Property Sentiment Report.
It says despite high inflation and rising interest rates, property market sentiment “held its ground” over the last quarter of 2023.
The report, which surveys property investors throughout Australia, shows four out of five respondents expect price increases over the coming 12 months, with very few expecting price falls.
Investors felt that increased taxes on land, properties and landlords were a large impediment to helping alleviate Australia’s housing crisis by encouraging investment in new property stock.
“Survey respondents reflecting on the last quarter of 2023 have given every indication they are going to be very active in the property market in 2024,” the report says.
“For almost two years, the proportion of respondents intending to buy in the next 12 months has been zigzagging up and down, but the latest results reveal that this key indicator of market sentiment is now at a two-year high.”
Surprise Top Performer
Despite what many may think the majority of Australia’s top-performing property markets are not beachfront or inner-city suburbs but are in fact normal suburban markets.
Domain’s latest House Price Report shows Churchlands in Perth outperformed every other location in 2023 with its median house price rising by almost 50% to $1.535 million.
In New South Wales the best performer was about 500km from Sydney. West Wyalong recorded the strongest growth of 39% to a still very affordable $400,000.
In Queensland, it was Parkhurst in Rockhampton with growth of 38% to $622,500.
PropTrack which uses a different methodology agrees Western Australia had the top performer but says it was Armadale and Brookdale with their medians up 34% to $404,000 and $441,000 respectively.
It says Riverview at Ipswich in Queensland was the top performer with growth of 24% to $464,000 while Sydney’s best performer was Denistone East (up 17% to $2,332,000).
Rosedale in Latrobe in Victoria was up 11% to $493,000 while Elizabeth North in Adelaide was up 30% to $366,000.
Coastal Properties Hold Values
More than a third of Australia’s regional coastal markets have property prices at record highs.
Analysis of 368 coastal markets, at least 50km from the nearest capital city, shows the top performers in 2023 were: Bouvard (WA), Mulambin in Central Queensland and Port Vincent (SA).
CoreLogic research director Tim Lawless says the markets which recorded significant value growth tended to be the more affordable ones, with all top 20 suburbs having median values well below $1million.
“The past 12 months have seen markets that offer a combination of value and lifestyle attributes, such as commuting distance to a major city, great beaches, and quality housing at a more affordable price point, outperform more well-known areas,” Lawless says.
“Suburbs in areas such as Western Australia and more northern regions of Queensland where it’s still possible to make a sea change for less than $1 million were the strongest performers last year. Although home values in these regions are mostly at record highs, they remain relatively affordable for sea changers selling out of more expensive metro markets.”
QUOTE OF THE WEEK
Regional Australia Institute CEO Liz Ritchie
“The surge in people, combined with strong regional job growth and the role regional Australia will play in the nation’s transition to net zero, are putting pressure on regional housing like never seen before.”