The Gold Coast has had a surge of good news in recent weeks, with all aspects of development in South East Queensland absolutely booming.
With controversy and concern in the media regarding worsening traffic congestion and road conditions, Tom Tate has put minds at ease with the announcement of plans to relieve pressure. “Every day, locals tell me that their number one frustration is road congestion and they want it sorted. "I’ve listened and today I’m responding. We will increase our local road spending in 2017-18 to do everything we can to free up traffic flows across the Gold Coast". This was followed by an announcement that the council plans to inject more than $100 million into road issues, after developer contributions surged by 80 percent according to the Queensland Treasury Corporation's annual credit rating report.
UDIA Gold Coast boss Finn Jones believes that these figures demonstrate the stability and strength of South East Queensland's development market. “This is a stable development period for the Coast and we have not had any unexpected or worrying signs of massive price rises as supply keeps pace with demand."The Queensland Treasury Corporation's report also revealed that the Gold Coast's credit rating has been increased from 'moderate' to 'sound', as a result of its improving financial status and reduction of debt on the back of a strong local economy.
When asked if the rating improvement could lead to a rates cut, mayor Tom Tate weighed in. “It possibly can (lead to a rate cut) ... and the rates on the gold Coast will be CPI or lower”. Other reasons for the better rating according to the GTC were the city's improved capacity to service debt, strong liquidity supported by robust cash management and a capacity to deliver core services and capital programs as well as improved economic conditions.
New reports from the Domain Group add to the good news for the Gold Coast, with housing prices growing by 7.3 percent last year - the best result of all major Queensland regional markets. It's not just prestige property doing well on the Gold Coast, however. Local agent Ruth Fea says properties across all price points are in high demand. She continued to say that though buyers from Sydney and Melbourne are thick on the ground, they’re often unrealistic about the current state of the market. "They all want to buy here, but they still think the Gold Coast property market is struggling so they are constantly missing out to Brisbane or Chinese buyers who have a better idea of what properties are worth here."