Gold Coast PROPERTY

House prices around the future Gold Coast light rail track are set to soar, with predictions some property values could jump $100,000 in the next 12 months.

Industry sources say developers have started to circle properties along the route and homeowners are looking to sell when the price is right.

There is evidence of housing price booms in the United States when light rail systems have been built.

According to a recent Tourism and Transport Forum paper, house prices within 800m of the new light rail system in St Louis, Missouri, enjoyed a 32 per cent premium and the cost of track-side apartments in Santa Clara, California, soared 45 per cent.

Rapid Transit System business advisory member Peter Trathen said he could see some house prices on Queen Street and Olsen Avenue jumping as much as $100,000 in the next 12 months as developers started to move in.

Mr Trathen said clever developers were already planning ahead and getting ready to buy up land along the track route.

“If you amalgamate land and put it to a development the value will be huge,” he said.

“There are massive opportunities in terms of development.”

Mr Trathen said developers were all waiting on the market to improve and when it did there would be a big rush.

Urban Development Institute of Australia senior vice-president Steve Harrison said major Queensland property developers were already scouting for opportunities around Broadbeach.

Smart players in the industry were making plans and investing.

“There’s been a lot of movement around Broadbeach,” he said.

There would be a premium on house prices along the light rail route as developers snapped up properties early for long-term plans.

Mr Harrison said once one developer put money behind a project along the route others would ‘pull their finger out’.

Real Estate Industry Queensland Gold Coast chairman John Newlands said house prices would start to rise around the light rail track but not dramatically.

“I don’t think you’ll see house prices jump from $300,000 to $400,000 overnight,” he said.

“I think you’ll see a gradual 10 per cent growth in prices.”

Queen Street resident Steven Gray said he thought prices would go the other way so was pleased to hear of a potential price rise.

“I’ve been here for a long time,” he said. “It’s a noisy street, so if the money was right I’d sell … “

Varsity Lakes has been pinpointed as one of the bright property spots on the Gold Coast.

National property researcher Terry Ryder of hotspotting.com.au says the future price growth prospects for Varsity Lakes have been significantly boosted by the completion of the rail link.

He said the suburb now had improved transport connections to Brisbane via rail, and south into NSW via the Tugun bypass.

“There are exceptions to every rule in real estate and Varsity Lakes illustrates this point,” said Mr Ryder.

“…Varsity Lakes does present above-average prospects for specific reasons.”

“It is an evolving, work-in-progress community that is part of the canal-lakes system and is well-situated for services and amenities, including education and shopping.

“But it is the new rail link that will have the biggest impact on future property price growth.”

A village is being built around the rail station, which will add to the community’s amenity.

Varsity Lakes is close to Robina Town Centre and five minutes from Burleigh’s beaches.

The suburb, which has median prices of $464,750 for houses and $388,000 for units, has an established commercial and dining precinct and neighbours the Bond University campus, which generates further demand for rental accommodation in the area.

In his latest quarterly report, Mr Ryder predicts Queensland is set for a strong year, both economically and in residential property.

“While some economists say the state will continue to struggle in 2010, I believe the collective impact of the infrastructure and resources development will generate jobs and activity faster than expected.”

Carrara properties were the best riverfront performers in terms of price growth last year, according to Colliers International research.

The firm’s Gold Coast Beachfront Riverfront Housing Property Watch report reveals that while main river houses across 12 suburbs achieved an annual capital growth of 5.3 per cent, Carrara almost tripled that with a 15.7 per cent rise.

Paradise Waters remained the Gold Coast’s most expensive riverfront suburb in 2009, although only two sales were recorded.

Sorrento finished a close second with four sales producing the $4.131 million average, followed by Southport where four sales averaged just over $3 million.

“Paradise Waters showed average capital growth during 2009 of two per cent, which is the lowest we have seen there in the 13 years of monitoring riverfront sales,” said Colliers International prestige residential director John Natoli.

“Sorrento’s average price and an average growth rate of 11.1 per cent were buoyed by the sale of Bartinon in Marseille Court for $8 million, the highest price paid for a riverfront home during 2009.

“That sale also helped push the 10-year riverfront growth total for Sorrento to … 525 per cent.”

The report’s author, Colliers International Gold Coast research manager Lynda Campbell, said only Paradise Waters and Southport were achieving average riverfront property prices of more than $1 million 10 years ago.

“In 2009, all riverfront suburbs recorded average prices over $1.1 million, with the exception of Cronin Island and Surfers Paradise where no sales were recorded and Ashmore where the average price was just under $1 million,” she said.

“Price growth has been outstanding with all suburbs experiencing triple figure growth over the 10-year period.”

Mr Natoli said interstate buyers were returning to the Coast’s prestige property market.

“With their markets experiencing increased activity and rising prices, they are seeing value here, and finding price corrections for beachfront and riverfront land have provided some enticing buying opportunities,” he said.

Now is the time to buy a luxury apartment on the Gold Coast.

The latest Midwood Queensland Investment Report for the February quarter shows there are more than 1000 medium and high-rise apartments for sale on the Gold Coast, and with just 58 sales in this category since December, it has never been a better time to get into the luxury market and negotiate a sweet deal.

Midwood Report author Bill Morris said the number of apartments on the market equated to two and a half years’ worth of stock, allowing prospectors and buyers to shop around for a good deal.

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Mr Morris said prices for new luxury apartments had fallen by as much as 20 per cent in the past year.

“Anyone looking at buying an apartment in the $600,000 to $3 million price range has a lot of room to negotiate a good deal at the moment,” said Mr Morris.

“The amount (of stock) on the market is partly due to the amount of residual stock in projects that have gone into receivership, such as Freshwater Point in Broadbeach and Southport Central.”

And there was better news for those who have the means to pay in cash, with an even greater discount possible, according to Mr Morris.

“If you’ve got the cash you could walk in and pay 30 per cent less than the current asking prices, which have already been discounted,” he said.

Mr Morris predicts prices on luxury apartments will continue to drop for up to two more years, or until the supply runs out.

Mr Morris said the huge number of terminated contracts at Coast Marine Parade in Labrador and Southport Central III in Southport had contributed to the lousy sales figures for new high-rise apartments for the February quarter.

Cattleman Evan Richards and wife Sally believe they achieved ‘good value’ when they purchased a three-bedroom, 400sqm apartment with Broadwater views and a 15m marine berth at Stockland development Allisee in Hollywell earlier this year for $1.85 million.

“Stockland make quality apartments and I think this is a one-of-a-kind apartment, the outlook is sensational, it’s close to the M1 and in a growth area full of new infrastructure,” said Mr Richards.

“It’s a safe and secure place to come home to after a day managing 300 head of cattle.”

Article courtesy of the knowledgeable Bill Morris @ Midwood Australia. Visit him @ The Midwood Report

THE GFC-inspired property slowdown has filtered through to Gold Coast residential land values which have dropped an average 5 per cent since they were last measured in 2007.

Dry suburbs generally fared better than waterfront areas which took hits of up to 29 per cent, according to a State Government report released yesterday.

The Property Market Movement for the 2010 Valuation reveals that plummeting unimproved values in prestige suburbs like Mermaid Beach (-29 per cent), Surfers Paradise (-18 per cent), Paradise Point (-15 per cent), Hollywell (-14 per cent) and Runaway Bay (-13 per cent) contributed to the city’s overall negative result.

Not a surprising outcome given that the valuations are based on sales during the period and that the GFC hit the Coast’s well-heeled suburbs hard in terms of sales volumes and prices.

But ratepayers whose land values have fallen should not hold out hope for a significantly lower rates bill.

Gold Coast City Council budget boss Eddy Sarroff said some ratepayers whose valuations had fallen substantially below the city average would receive a slightly lower rates bill but changes in land values had no affect on council coffers.

“The fluctuation in valuation does not have an impact on our revenue — the only difference this fluctuation in land values will make is between one ratepayer and another ratepayer,” said Cr Sarroff.

Multiple unit properties plunged an average of 17 per cent, in line with investors abandoning the sector at the height of the downturn.

On the other side of the ledger, the more affordable and land-rich areas of Coomera and Ormeau were the standout performers, recording hikes of 20 per cent and 15 per cent respectively, reflecting the increasing attractiveness of entry-level property over the past few years.

Land in Coomera now has a median value of $205,000, while in Ormeau it sits at $197,500.

The only other Gold Coast suburbs in positive territory were Arundel, Ashmore, Carrara, Highland Park, Merrimac, Molendinar, Nerang, Parkwood, Upper Coomera and Worongary, all of which had single-digit rises. The remaining suburbs had zero or negative growth.

Delfin has released the final stage of residential land within its $100 million South Bay village precinct at Varsity Lakes.

The release of the 10 lots comes after the sellout of the first three stages of land in the 91-block enclave.

Delfin Varsity Lakes senior project director Carl Bruhn said more than 1000 lots had been sold since the waterfront community was established in 1999.

“The final lots at South Bay are the last opportunity for home buyers to secure their piece of waterfront living at Varsity Lakes and take advantage of the suburb’s proven capital growth,” he said.

Located on the eastern bank of Lake Orr, the blocks are priced from $224,000 and range from 217sq m to 493sq m.

Delfin also is taking expressions of interest on an additional seven waterfront blocks at South Bay.

The precinct has been designed to offer a low-maintenance lifestyle in a village environment, by providing attractive living options with easy access to cafes, fresh food shops, boutique stores, lakeside recreation areas and a business centre.

The north-facing precinct has about 400m of water frontage and will connect to the community’s 20km ‘hike and bike’ network.

It is directly opposite the Varsity College Primary Campus and is a short walk or drive from Varsity Lakes railway station, the Varsity College Senior Campus and Bond University.

On completion, South Bay will have more than 150 homes and apartments wrapping around the proposed village centre.

LIVING among the clouds, a pool in the lounge room, a Hugh Hefner-style pad or $20 million of ultimate beachfront luxury — never have so many impressive Gold Coast penthouses been on the market at the same time.

From the 360-degree views offered from the Q1 tower penthouse to $20 million opulence at exclusive Surfers Paradise building Jade, to the stark black interior of a Pivotal Point penthouse or the lavish surrounds of Ephraim Island’s top offering — penthouses on the Coast have it all.

Seven of what are arguably the Coast’s top 10 penthouse properties have landed on the market at once, with the three-level lavish Jade at No.1 with a $20 million-plus price tag.

It has five bedrooms, a four-car lock-up garage, two kitchens and a pool next to the living room with views over the Coast.

A close second is the 940sqm penthouse at Q1, which sprawls across one level with a pool in the lounge room — within sight as you step out of the lift.

Ray White Broadbeach principal Gary Gannon is taking the never-lived-in property to auction for Japanese investor Akeo Kakemoto, who bought it off the plan and decided to sell on the back of the strength of the Japanese yen.

With floor-to-ceiling windows, the 74th floor apartment is so high residents look down on the city’s New Year’s Eve fireworks that are set off from the building.

“It is a true penthouse on the Gold Coast,” said Mr Gannon.

Even the bathroom has views across the ocean and the Gold Coast skyline.

The Elysee at Kirra penthouse is just as impressive.

The architect-designed super luxury 864sqm beachfront property has an inground pool, 4m high ceilings, a private internal lift, Iranian marble floors, an 18m lap pool and a four-car lock-up garage.

The Allure, Sentinel at Budds Beach, Rivage Royale and Chevron Renaissance also offer lavish beachfront penthouse living but there are also the extravagant penthouses that give the Gold Coast its variety.

The Vogue penthouse appears to have channelled Playboy mogul Hugh Hefner’s taste with the two-level, two-bedroom home featuring an exotic theme with fireplaces, leather and granite.

Then there is the Pivotal Point penthouse at Southport which is opposite to the features of most other super apartments.

Devoid of colour, black dominates creating a stark contrast and very sexy feel.

The Rivage Royale, Pivotal Point and Chevron Renaissance are the only three penthouses of the top 10 not on the market.