With the lock-down of Queensland’s borders and the decrease in migration that happened earlier this year. Capital cities have witnessed most of the fall in both property listings alongside in a decline of house prices. Investment properties took the brunt of these falls in capital cities. While regional and sort after areas like the Gold Coast bucked that big-city trend as people look at lifestyle changes.
With the unemployment rate rising rapidly and expected to continue to rise well into 2021 it was not surprising that many commentators were predicting further sharp falls in residential house prices.
However, Paul Hill Realty Hope Island has noticed that listings are back to almost pre-COVID levels in most residential property markets and some of the falls have not been as great as expected.
Other significant variables are truly historically low mortgage rates and bank support via short-term mortgage relief which has all joined forces to keep prices generally stable this year.
What’s the outlook for the Gold Coast property market for 2021?
This is a typical inquiry people are posing to us since the Gold Coast real estate market is working its way out of the effects of the Coronavirus Pandemic and out of Australia’s first recession in 30 years.
Indeed, forecasting is difficult but in this article, Paul Hill Realty Hope Island will explain what our research suggests is ahead for Australian Property on the Gold Coast for 2021.
Property analyst Terry Ryder believes Australia is heading into a nationwide property boom with strong property markets across the nation. In various parts of the country that boom is already underway, it’s already a reality.
Particularly in the Southern Gold Coast Market, Mermaid down to Tugun and Bilinga, really along the coastline. Actually, it’s the lack of property listings has begun driving prices higher, which is expected to be carried in early 2021.
The Real Estate Strategy Department at Macquarie Asset Management believes that the current decrease in home prices of between 2-4% could increase up to around 10% when unemployment rises and Government support is withdrawn.
Nonetheless, if this were to happen Macquarie believes that further Government initiatives would be likely to be rolled out to stimulate growth.
Macquarie Asset Management as well believes that with interest rates predicted to remain low for at least the following two to three years, house prices are expected to bounce as employment and confidence returns.
Although, medium to longer-term growth rates is predicted to be likely more subdued than in past decades.
For those looking to rent, the REIQ predicts the relaxation of border restrictions will make it even harder to find a rental property on the Gold Coast.
In November, the current vacancy rate was 1.6 percent. In 2021, vacancy rates are predicted to remain as tight.
What will really happen to the Gold Coast property markets in 2021 will depend upon… how soon the Australian economy picks up, the level of unemployment reached and importantly the level of consumer confidence as we come out of the recession.
At the same time, with banks extending borrowers a lifeline in the form of deferred mortgage payments, there is no forced selling at present and this plus the lack of new properties being listed for sale is underpinning property values.
A surge in first home buyers is set to fuel house price hikes, with the Real Estate Institute of Queensland (REIQ) tipping property values will increase dramatically in 2021.
This is following the 40% surge of first home buyers that entered the Queensland property market in September. All because the interest rates have never been lower and the level of government assistance for first home buyers has never been higher.
Property analyst Terry Ryder has said ‘first home buyers were the most active they had been in a decade.’
Paul Hill Realty Hope Island has already noticed a significant increase in local consumer confidence with many home buyers and investors showing interest in buying investment properties.
At present, we are getting more enquiries from interstate investors than we have had for many, many years. This should continue to be the case in 2021.
If you’re looking at buying your next home or investment property Paul Hill Realty can help you.
Now is the time to take action and set yourself for the opportunities that will present themselves as the market booms…
Paul Hill Realty has built up a reputation of giving exceptional service as well as going above and beyond the normal expectations that a property investor can expect.
Paul Hill Realty are Specialists in Residential Property Management on the Northern Gold Coast from Southport to Ormeau and west to Wongawallan. However, know the complete South Eastern Qld area well so can list any property in South East Qld.
Get in touch with one of the Paul Hill Realty Hope Island experienced property managers by calling 07 5577 1888.