Andrew Bell’s Market Wrap: Gold Coast Auction Market Heating Up!

MARKET WRAP
Issue 19  |   August 30th, 2018  |  Gold Coast Auction Market Heating Up!

We finally got some rain and a little greenness back into our environment, an amazing surge in sales activity here on the Gold Coast, and a new Prime Minister. Let’s hope as we break into spring that these are really positive outcomes for all of us.

At the recent Ray White International Awards we were thrilled to learn we were No. 1 Residential Office Internationally in Volume of Sales, No. 3 Residential Office Internationally in Dollar Value of Sales and No. 4 Commercial Office Internationally. We were also named the International Residential Property Management Team of the Year, the International Commercial Property Management Office of the Year and the Commercial Auction Office of the Year. On top of that was also a host of individual awards by so many of our salespeople. It is a great honour but what thrills us most is that we can assure you that we will always be providing you with the very best resources, the very best skills and the most talented team of people to service your real estate needs.

A real sign of the strength of the real estate market here on the Gold Coast has been our last two auctions. Just over three weeks ago our in-room auctions produced a sales success result of 88% and with just a couple of more properties to sell to make that a 100% result. Likewise at our auctions last week, where an amazing 26% of the properties sold prior to auction. The usual figure is around 10% and the reason for the huge number of sales prior to auction is people making offers too good to refuse to our sellers that made it attractive to sell before auction day. At the in-room auction was a huge number of bidders, with one property with 11 registered bidders.

The most significant group of buyers have been our downsizers, and most of these downsizers are coming out of Sydney and Melbourne. We are obviously talking about either semi-retired or fully retired people and most of the baby-boomer era. Whilst some are looking for houses, there is a strong attraction to townhouses and large apartments. We expect this trend to actually grow in size significantly and it is a wonderful addition to the Gold Coast property market having these cashed up owner occupiers heading this way in great numbers.*

We are also seeing a significant jump in the number of first home buyers. Interestingly, we always think of first home buyers as being young couples and indeed a good proportion of these first home buyers are young couples. However, we are also seeing the effect of our population growth through immigration where many of these first home buyers are middle-aged people who have migrated to Australia and have been working hard and saving their money to buy their very first property. A lot of this first home buying demand is of course in house and land packages and the Gold Coast simply hasn’t been able to generate sufficient land supply to meet the demand of our rapidly growing Queensland population. With so many people moving to Southeast Queensland we have to work hard to increase the supply of available land. One of the prices to be paid for creating more land in central locations has been smaller lots. Many of us will remember the great Australian dream of a quarter acre block, well we are now starting to see a significantly larger percentage of available land down to just 450 sq m. This certainly eliminates the need for a lot of gardening and perhaps does meet the modern lifestyle.

We are looking forward to a very strong finish to the second half of 2018, but we most definitely need more properties for sale to meet the demand in the marketplace, albeit that the market still prices sensitive and anything overpriced at present is simply not selling but anything priced to market is selling well.

For those who are inclined to book late, don’t forget the fabulous Ray White Surfers Paradise Ball is on the 22nd of September. We have record numbers attending and everyone is very excited. We have really put some great theming together and the entertainment is first grade, so come and join us. You won’t regret it. Our remaining tables of 10 are just $2,100 and whether you want to take a whole table or just want to come as a couple or single just reach out to our Ball Coordinator, Selena Carson, and her details are 0410 650 185. It is a fabulous Gold Coast community event and one you shouldn’t be missing.

I wish you all the very best as we enter our spring season. Stay safe.

Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group

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