Prestige property market braces for high demand
THE Gold Coast prestige market is bracing for a slingshot-style recovery as competition hots up among cashed-up buyers vying to secure blue chip properties.
The top end of town has cruised through the COVID-19 crisis relatively unscathed, with buyer demand, low interest rates and limited investment options keeping prices steady.
Activity across all sectors of the property market is only expected to get better as restrictions are relaxed from this weekend when up to 10 people are able to attend open homes and auctions.
Alex Phillis, of his self titled agency, said while the market was proving hot and cold on the northern end of the Coast, it was performing better than he expected.
“We still really have to work and roll with the changes and deals that would usually wrap up in three days are taking a week to wrap up,” Mr Phillis said.
“But the market is going a lot better than I anticipated.”
He said interstate buyers were lining up and waiting for border restrictions to ease.
“Once the borders are open it’s going to be game on,” he said.
“Over the past four weeks we’ve seen buyer inquiry and transactions increasing to pre-COVID-19 levels,” said agent Tolemy Stevens of Harcourts Coastal – Broadbeach who last month sold Apartment 14 in Vogue on Broadbeach for $3.25 million with Mitchell Lambert.
“We can certainly say that Gold Coast real estate, and in particular luxury real estate, is well and truly back.”
Michael Kollosche, managing director of prestige property agency Kollosche, said buyers are back out in force and looking to transact.
“Apart from the first few weeks of the shutdown we are not seeing any uncertainty or slowdown in the property market,” he said.
“There has been no real impact to pricing as a result of COVID and, for the most part, we are seeing average days on market compress considerably.”
A string of multi-million deals have been done during April, including $5.2 million for 59 Hedges Ave, Mermaid Beach, $6 million for 345 Golden Four Drive, Tugun and $3.755 million for 261 Jefferson Lane, Palm Beach.
Mr Kollosche said uncertainty in the stock market led investors to return to the security of bricks and mortar while record low interest rates had seen owners sit tight.
“The low interest rates have been the catalyst for stock levels to dry up with most property owners starting to fix rates for 3 year terms at circa 2.2% per annum,” he said.
“In addition to that there is a lot of money in the private sector trying to source returns on capital as term deposits are now only paying 0.9% per annum.
“The reports I have been reading, and the market activity we are seeing is suggesting that we are going to see a very strong property market over the next few years with demand increasing for blue chip locations.”
And while border closures have prevented interstate buyers from viewing properties in person, buyer demand is expected to surge once travel is permitted.
“I would go as far as to put local buyers on notice: your window is closing and it’s closing fast,” said Mr Stevens.
“Sydney, Melbourne and interstate purchasers are at the start line, waiting for the green light.
“We have an overwhelming number of buyers who have done their research, done their due diligence, got their short list and done their digital inspections.
“They are now waiting to fly to the Gold Coast to physically inspect these properties and secure them.
“After all these weeks of negative talk, the real estate market has been bubbling away and I believe we’re in for a slingshot effect once we get the green light for interstate buyers to join the local buyers.”
Ray White Surfers Paradise Group CEO Andrew Bell said the Gold Coast real estate market is embracing and responding to the lifting of restrictions.
“While there was a lot of uncertainty surrounding the market three to four weeks ago, things are now beginning to stabilise,” he said.
“Interest in real estate is up substantially compared to what it was last month and the inquiry rates through our offices are picking up significantly.”
Amir Mian, principal of Amir Prestige, said if anything, the real estate restrictions had brought more serious sellers and buyers to the forefront.
“It has made sellers become more realistic with their pricing and it has also brought more genuine buyers forward,” Mr Mian said.
“We are also seeing buyers looking for long-term family homes rather than investment properties.
“We are selling to the end-users, they are the dream market. They love the kitchen, they love the pool and the entertaining areas, and they are easy to sell to because they buy with their emotions and needs.”
He said the Gold Coast property market would also benefit when the borders were reopened.
“I have been talking to lots of buyers who are wanting to get out of Sydney and Melbourne,” Mr Amir said.
“They have been in isolation and have realised they would much rather be living on the Gold Coast.”