the mcgrath report s p r i ng 20 13, B RIS BAN E
02
message from the ceo
Last year we predicted that 2013 would be the turnaround year for the residential market and the beginning of the next growth cycle. It’s looking like that’s the case as we report and amazing what a difference a year can make. There are several factors driving the market recovery. Changes we are experiencing include: • Interest rates are now well under 5% vs last year when they were around 6% • The sharemarket was around 4,400 & as we go to print is now around 5,200 • Auction clearance rates have shifted from around 55% to above 75% • Chinese buyers have arrived in force & are seeking quality properties in all price ranges • SMSF have increased their investment into residential property by 10.4% in the past year • Over the past year more than $122M of prestige property sold in QLD with the top sale on the Gold Coast at $9.8M & $8M for the highest sale in Brisbane
In this report we will seek to analyse this new emerging market & determine what are the key drivers going forward. As well as looking into the future again to see what’s ahead. I’m not saying the recovery phase will be without hitch or the occasional dark cloud, but it’s a much more pleasurable experience writing this year’s report as I stare out at a far clearer horizon than last year. My major predictions for the year ahead are: • Continued residential property recovery Australia wide with several cities surging in demand & prices in 2014 • Sydney leading the way but South-East Queensland the overall strongest growth market in Australia over the next three years • Increasing demand from Chinese buyers • House prices to outperform unit values over the next three years • Interest rates to bottom around these levels for the remainder of the year but start to rise in the second half of 2014.
• We have just had a new Government anointed with a landslide victory • The key performance indicators are as healthy as I’ve seen them for many years
John McGrath CEO, McGrath Estate Agents
The McGrath Report Spring 2013 | 03
greater Brisbane demographics
HOUSES
FORTITUDE VALLEY
KANGAROO POINT
APARTMENTS
houses Suburb
NEWSTEAD
NEW FARM
BRISBANE CITY
DECEPTION BAY
NARANGBA
REDLAND BAY
FOREST LAKE
NORTH LAKES
226
250
257
281
295
306
367
385
430
543
MOST ACTIVE SUBURBS FY13
Apartments Median price
Sales
NORTH LAKES
430K
430
FOREST LAKE
380K
REDLAND BAY
Median price
Sales
BRISBANE CITY
455K
543
385
NEW FARM
482K
367
474K
306
NEWSTEAD
561K
257
KALLANGUR
320K
295
KANGAROO POINT
470K
250
DECEPTION BAY
292K
281
FORTITUDE VALLEY
410K
226
(RP Data June 30, 2013)
04
Suburb
greater Brisbane snapshot
2.1% 2.09M Annual Population Growth Rate of 2.1% Brisbane’s population grew at 2.1%, the second fastest rate in Australia behind only Perth. Gold Coast had the largest growth in Queensland, increasing by 10,971 people to 526,173 in 2012.
Population increase of 43,300 To reach a projected number of 2,689,500 households by 2031, Greater Brisbane would need to build 44,400 new homes each year. 2.09M as at 30 June 2012, up approx. 42,938 people during the year.
29.7% GREATER BRISBANE STATISTICS Median age: 35 Most popular second language: Mandarin % of residence born overseas: 29.7% Average household size: 2.7 people Apartments count for 11.7% of occupied private dwellings White collar workers: 50% Average motor vehicles per dwelling: 1.7 (ABS Census)
(HIA & ABS)
(ABS Census)
mean Household Income 2006
2013
Brisbane
$1,357 pw
$1,967 pw
QLD
$1,275 pw
$1,675 pw
Australia
$1,305 pw
$1,847 pw
(ABS as at Aug 16, 2013)
Audi Benchmark Suburbs with the most Audi owners Follow the smart money.
Balmoral
Camp Hill
Ascot
MacGregor
Chelmer
New Farm
Brookfield
Brisbane
The McGrath Report Spring 2013 | 05
this year’s big themes
1. chinese buyers hit the market
$4.2B
9,768 9,768 Foreign investment approvals for residential real estate purchases or development in Australia in FY12 – more than a 207% increase than that of three years ago. NSW experienced the highest rate of growth in foreign investment up 45%. (FIRB)
China is Australia’s No 1 source of international students with 110,120 students enrolled, representing almost 30% of our international student population. China is our No 2 source of migrants, with 25,509 entering Australia in FY12. (Australian Education International YTD May 2013, ABS & Immigration Dept)
The first ‘significant investor visa’ requiring $5M of investment in exchange for fasttracked residency was granted to a Chinese family. Since the visa’s launch in November 2012, over 300 applications have been lodged but only ten have been granted due to lengthy processing. Over 90% of the applicants have been lodged from China & 38% have indicated they wish to reside here.
Chinese buyers are Australia’s third largest real estate investors at $4.2B in FY12 behind the US ($8.2B) & Singapore ($5.7B). Chinese investment is up 75% in just two years from $2.4B in FY10. (FIRB)
2. Self-managed super funds love property
$17B Approximately 1 in 25 Australians have a SMSF today. $117B contributed to super in FY12, second biggest on record since 2007 when a one-off contribution of up to $1M was allowed under the Howard Government. (*estimate based on FY12 growth rate (APRA, ABS))
There has been a 23% increase in the amount of money invested in residential property via SMSFs over the past two years to March 2013. Young people have emerged as the new drivers of SMSFs. 67% of new SMSFs opened in the March 2013 quarter were aged 25-54 compared to 31% aged over 55. (ATO)
06
Approximately $17B in residential property was held by SMSFs as at March 2013. 74% of SMSF members earn less than $100,000 per year. (ATO)
51 The average age of SMSF members is 51. There is a record 509,362 SMSFs in Australia today with 963,852 members. Over 35,276 new SMSFs were created in FY12, just below the FY07 high of 41,054. (APRA)
3. why rent when you can buy for less?
6% First home buying slumped to just 6% of the QLD market, well off the long term average of 15%, after the $7,000 grant was removed. Most young Queenslanders are yet to appreciate that historically low interest rates are far more beneficial than relying on grants.
Most Savings Brisbane now has 71 suburbs where it is cheaper to buy than rent. Up from 58 in Dec 2012. Regional QLD has 171 suburbs where it is cheaper to buy than rent. Up from 127 in Dec 2012. (5.4% P & I variable)
Top 5 suburbs – Brisbane offering greatest saving from rent to purchase SUBURB
PROPERTY
SAVINGS PCM
Apartments
$416
HOUSES
$385
3 Victoria Point
Apartments
$271
4
Beenleigh
Apartments
$238
5
woodridge
Apartments
$233
1 Brisbane City 2
AUGUSTINE HEIGHTS
(RP Data, based on 5.4% P & I variable loan)
(AFG)
4. Infrastructure & Economy
Significant investment in infrastructure is driving above average economic growth, with plenty of flow-on effects for the property market. New roads are unlocking value in outer areas whilst also improving access in traffic-clogged inner city locations. Record spending in health – the state’s largest employer, is creating jobs & driving demand for properties around new hospitals.
3% Estimated 3% economic growth 2013-14 – second to WA & NT, above national average 2.75% Estimated 4% economic growth 2014-2017 driven by increasing exports & rebounding consumer spending. (QLD Government forecasts)
0.25% Commonwealth Games 2018
Jobs growth
$2B in economic investment
• 2013-14: 2.25%
30,000 new jobs
• 2015-16: 2.75%
• 2012-13: 0.25% • 2014-15: 2.5%
urplus goal delayed to S enable rebuilding & new services
(QLD Government forecasts)
urplus of $1B+ S in 2015. (QLD Government forecasts)
The McGrath Report Spring 2013 | 07
08
market snapshot
the Average price for Greater Brisbane metro apartments is $370,000 Brisbane is the third least expensive metro city. Only Adelaide & Hobart are more reasonably priced. $270K
HOBART
$333K
ADELAIDE
$374K
BRISBANE
$410K
CANBERRA
$415K
PERTH
$435K
MELBOURNE
$440K
AVE CAPITAL CITIES
$458K
DARWIN
$500K
SYDNEY
Big city affordability 46 suburbs in Greater Brisbane have apartments with median prices under $300K, up from 30 last year. Below are five Brisbane LGAs with Apartments sub $300K
$275K
WYNNUM WEST
$285K
PARKINSON
$290K
$290K
$291K
KURABY
ALGESTER
DARRA
$297K
$299K
ACACIA RIDGE
TAIGUM
Median house & apartment prices $270K
HOBART ADELAIDE
$315K $333K
APARTMENT HOUSE
$395K $374K
BRISBANE
$450K $415K
PERTH
$513K
$458K
DARWIN
$435K
MELBOURNE
$520K $530K
$410K
CANBERRA
$555K $500K
SYDNEY $0K (RP Data)
$510K
$440K
AVE CAPITAL CITIES
$100K
$200K
$300K
$400K
$500K
$645K $600K
$700K
The McGrath Report Spring 2013 | 09
5 major demographic movements within Brisbane The five key trends emerging in terms of demographic movements within GBA regions are: 1. Brisbane 2. Brisbane 3. Brisbane 4. Brisbane 5. Brisbane
Inner City to Brisbane South South to Brisbane Inner City South to Logan-Beaudesert Inner City to Brisbane North Inner City to Brisbane West
The demographic profile groups below are the biggest movers within Brisbane:
EMPTY NESTERS
DINKS
SINKS
same sex COUPLES
60-79 years, typically married, income from savings & financial investments. They value their health, lifestyle & financial well-being.
30-59 years. Likely to be legally wed rather than de facto. Career focused, working longer hours. Value lifestyle, travel & financial well-being.
29-59 years, SINKS are career-driven & value their lifestyle, travel, entertainment & freedom/independence.
20-99 years, All employment types, higher than average disposable income. Highly tech savvy, love travel & value financial wellbeing & independence.
From: Brisbane South TO: Logan – Beaudesert
From: Brisbane South TO: Logan – Beaudesert
From: Brisbane South TO: Brisbane Inner City
From: Brisbane South & North TO: Brisbane Inner City
Moving to downsize to quieter suburbs/free up capital for retirement by selling family home.
Moving to more affordable house to create family.
City lifestyle, access to work.
Urbane lifestyle & access to work
Lone person households are the second largest emerging group in this area, with 3,755 SINK households present. The largest increase being DINKS. Majority earning >$1,500 pw.
The area has the largest number of same sex couples with 652. Almost one-third (29.9%) of all the same sex male couple households live here, with 20% earning $5K+ pw.
From: Greater Brisbane TO: Gold Coast
From: Greater Brisbane TO: Gold Coast
Lifestyle & affordability
Lifestyle & affordability
Lone person households are the second largest emerging group in this area with over 2,400 SINKS present. The largest increase is couples with children. SINKS can afford to live here & like the relaxed coastal lifestyle of the Gold Coast. Majority earning >$800 pw.
Second most popular place for same sex couples to live, accounting for 379 households.
Majority are retired with only 23% still in workforce. Earn an income which allows for a conservative lifestyle ($300-$399 pw). From: Moreton Bay – South TO: Moreton Bay – North Moving to downsize. Majority are retired with only 22% still in workforce. Earn an income which allows for a modest lifestyle ($400-$599 pw). From: Brisbane South TO: Brisbane – East Moving to downsize to quieter suburbs/free up capital for retirement by selling family home. Majority are retired but 28% are still in workforce. Earn an income which allows for a very conservative lifestyle ($200-299 pw).
10
The second largest increase in family types in this area is DINKS, behind couples moving into this area to have children. Majority earning <$1,250 pw, & looking for first home. From: Greater Brsibane TO: Gold Coast Moving for lifestyle primarily, some to start family. Couples without children are ranked third for family types moving into this area. This is the younger end of the profile group. Majority earn <$1,250 pw. From: Brisbane North TO: Moreton Bay – South Moving to more affordable house to create family. The second largest increase in family types in this area is couples without children, behind couples with children. Possible new DINKS nesting site; moving into this area to have kids. Majority earning <$1,500 pw, so looking for affordable first time home.
From: Brisbane Inner City TO: Brisbane South Location, affordability & access to coast. Lone person households are the third largest emerging group in this area, following DINKS. SINKS like the proximity to work & the area’s central location to city & Gold Coast. Majority earning >$1,500 pw.
The older end of the cohort, this group is likely to be thinking long term into retirement. From: Brisbane Inner City TO: Brisbane South More space, less active, access to Gold Coast This is the third most popular area for same sex couples, accounting for 281 households. This move is about a slower pace, & generally are more established couples. 5% earn >$5K pw.
Moreton Bay – North
Moreton Bay – SOUTH Brisbane – North Brisbane inner city Brisbane – west Brisbane – south Brisbane – east
Logan – Beaudesert
Ipswich
Gold Coast
The McGrath Report Spring 2013 | 11
prices will increase as infrastructure changes New infrastructure will be a major catalyst for price growth in pockets of Brisbane & QLD. Here we profile the five projects that we believe are the most significant & most likely to increase property values.
Legacy Way motorway
Brisbane CBD redevelopment
Southport hospital & light rail
Commonwealth Games infrastructure
The 4.6km tunnel will enable motorists to take a direct high-speed route to the airport & Australia TradeCoast precinct, which is expected to become South-East Queensland’s second biggest employment area.
This project involves the redevelopment of state-owned land along Brisbane River between the water & George Street & between Alice & Queen Streets.
The new 750 bed Gold Coast University Hospital in Southport & the recently upgraded Robina Hospital will generate about 400 new jobs.
The main feature is a 43 floor tower at 1 William Street, which will become the largest commercial tower in the state. Around 15,000sqm of office space will be available for lease to the private sector, with the surrounding area to include a range of new facilities.
A private hospital will be built on the site. The hospital will be a terminal station for Queensland’s first light rail, connecting the new Health & Knowledge precinct.
The Commonwealth Games will create 30,000 new jobs & $2B in economic investment. The development of the Parklands site from October 2013 to make way for the Games Village.
qld.gov.au
brisbanedevelopment.com
health.qld.gov.au
gc2018.com
Fast facts
Fast facts
Fast facts
Fast facts
• Four minute trip between Toowong & Kelvin Grove
• 1 William Street will reduce the Government’s need for CBD offices, saving taxpayers $60M pa
• The hospital will deliver 750 Beds, & 400 jobs
• New Aquatic Centre to be completed 2014
• Light rail capacity of 10,000 passengers per hour
• Opening/closing ceremonies at Carrara Stadium
Completion Hospital Late 2013 Light Rail 2014
Completion 2014-2018
Beneficiaries Ashmore Broadbeach Labrador Southport Surfers Paradise & surrounds
Beneficiaries Gold Coast region from Hope Island in the north to Coolangatta in the south
The motorway will also reduce traffic on Milton Road & Coronation Drive. Legacy Way is the fourth project in the TransApex plan, designed to reduce congestion & increase connectivity on Brisbane’s road network.
• Legacy Way will deliver $10.5B in economic benefits Completion 2015
• 1 William Street alone will create 1,000 new jobs & stimulate the construction sector
There will be 16 stations including one at Main Beach.
The village will become a mix of new residential, commercial facilities as part of the Health & Knowledge precinct. This will provide important diversification to an economy currently reliant on tourism & construction.
Completion End 2016 Beneficiaries Auchenflower Chapel Hill Kelvin Grove Kenmore Milton Newmarket Paddington Toowong & surrounds
12
Beneficiaries Brisbane CBD Inner city suburbs such as West End, Fortitude Valley, Spring Hill
Sunshine Coast University Hospital Australia’s largest hospital project, the Sunshine Coast University Hospital (SCUH) is a new public tertiary teaching hospital being built at Kawana.
Sunshine Coast University Hospital
An estimated 10,000 patients per year will no longer have to travel to Brisbane for complex treatment. The SCUH site, known as the Kawana Health Campus, will also have a 200 bed private hospital. The development will bring thousands of new jobs & property growth to the area. health.qld.gov.au Fast facts • 450 beds increasing to 738 in 2021
Brisbane CBD redevelopment Legacy Way motorway
• 3,500 staff increasing to 6,000 in 2021 Completion: Private Hospital Dec 2013 SCUH Late 2016
Beneficiaries Birtinya Buddina Buderim Kawana Minyama Warana
Southport hospital & light rail
Commonwealth Games infrastructure
The McGrath Report Spring 2013 | 13
around the WORLD There is renewed demand for quality property throughout many of the world’s international business hubs with little or no restrictions on foreign ownership. Driven by new money from mainland China, oil rich Gulf States & cashed up Eastern Europeans, all looking for safe havens & good investments.
London
London is a strong market with no foreign ownership restrictions attracting wealthy overseas investors looking for a stable safe haven.
▪ ▪ London is the fastest-growing city in Europe & is expected to grow by one million people in the next decade ▪ ▪ London prices jumped 0.9%. Demand in the capital has surged 15% in the past six months, while supply has fallen 0.6% ▪ ▪ Central London prices are up 5% (Belgravia, Chelsea, Knightsbridge, City Fringe) ▪ ▪ An increase of 10% elsewhere (Fulham, Clapham, Battersea) in first half 2013 ▪ ▪ Reduced sales above £2M due to higher stamp duties & company tax ▪ ▪ £5M+ strong, fuelled by foreign interest (Bloomberg, Marsh & Parsons)
14
Paris
New York
Hong Kong
Tokyo
With hefty new taxes & waning consumer confidence, the housing market has declined but wealthy foreigners of Chinese & Middle Eastern origin are still buying.
Limited supply, low interest rates & confidence in the city as an international haven is fuelling strong demand for property investment.
Hong Kong remains one of the most expensive property markets in the world but transactions are on a downward trend due to new taxes. Hong Kong is failing to attract foreigners.
With no restrictions on foreign ownership, Tokyo was the fourth most popular place in the world for real estate investment in 2012.
▪ ▪ S ales volume down 40% in the last 12 months
▪ ▪ Rising international demand, buyers from Latin America, Asia, Middle East & Europe (upsurge from Greece)
▪ ▪ New 15% tax on foreign purchasers & extra tax on companies & nonresidents
▪ ▪ Investors are chasing much higher & more stable yields compared to Hong Kong, Singapore & other Asian countries
▪ ▪ I nstability among owners about a constantly evolving regulatory environment ▪ ▪ One-off levy for households with assets above €1.3M has hurt the market. In 2012, 8,000+ households’ tax bills exceeded their total income ▪ ▪ Overseas buyers include Lebanese, Russians, Chinese ▪ ▪ French working abroad in London are buying in Paris from banking & IT sector ▪ ▪ Strengthening is the sub - €1.3M
▪ ▪ Highest sales volume in Q2 2013 since GFC hit ▪ ▪ Average price per square foot at highest level since Q1 2009 ▪ ▪ New development median price increased in the last 12 months 44% ▪ ▪ Majority of new developments in Downtown precinct (Corcoran Report)
▪ ▪ Stamp duty doubled on HK$2M+ sales ▪ ▪ Foreign buyers expected to hesitate, correction in the luxury market likely ▪ ▪ Mainland Chinese accounted for 18% of new luxury sales in Q1 2013 – the lowest level in four years & down from 43% in Q3 2012 ▪ ▪ Kowloon in particular has been a popular area for investment by mainland Chinese (Centaline Property Agency)
▪ ▪ B uyer activity from throughout Asia – Taiwan, Singapore, China & Malaysia ▪ ▪ Steep devaluation of the Yen has made Tokyo property cheaper & yields healthier for foreigners ▪ ▪ Tokyo’s large & growing population, as well as trend towards smaller household sizes, is expected to underpin rental levels (Jones Lang LaSalle, Savills)
(databiens.com)
The McGrath Report Spring 2013 | 15
Brisbane commentary John McGrath’s Top Picks Cannon Hill -This suburb offers great value with access to the same facilities as more expensive nearby Bulimba & Hawthorne. Small cottages start in the $500,000s with large Queenslanders under $1M. Chermside & surrounding northern suburbs - People are showing a willingness to go further north of the city for newer properties & better value for money. Chermside is increasingly popular with its great retail strip. Highgate Hill - Attracting families & professionals. Just 4.5km from the CBD, well located with access to the cafes, restaurants & entertainment precinct of West End & Southbank. Kenmore - Great family area & just outside your traditional inner-city suburbs. Still very affordable for families & first home buyers. Very popular amongst renovators looking for properties situated a larger blocks of land. Toowong - A suburb with wide appeal suitable for young first home buyers & investors through to families & executives. The suburb will directly benefit from the new Legacy Way motorway.
Will property prices grow the way they have before? This is a question I have been asked a lot lately, & the short answer is no. I believe the South-East Queensland market will outperform the rest of Australia over the next 3-5 years. Property has been significantly oversold since the GFC – particularly on the Gold Coast, & seachangers who have deleveraged are in a prime position to take advantage of phenomenal value. But the market is on the cusp of recovery with 2014 likely to be the first year of good growth in values. Queenslanders are highly optimistic, with three out of five expecting house prices to rise by up to 10% or more over the next year – the second highest rate of confidence behind NSW. (Source: Westpac-Melbourne Institute Consumer House Price Expectations Index). Strong underlying fundamentals such as our stable economy, low unemployment, a vast undersupply & the highest population growth rate since the baby boom generation will underpin property price growth across the country. But local factors including a doubling of the state’s population over the next 40 years & a government focused on economic growth will drive a stronger period of price rises in Queensland in the medium to long term. In Brisbane, the market is stable with slowly increasing demand coming from all corners – upgraders, investors, first home buyers & seachangers from Sydney & Melbourne. The diversity of demand is resulting in better sale prices, which in turn is raising confidence. On some campaigns there have been 40-50 groups through a single open which is very high for Brisbane. With home loan rates at their lowest in 30 years, more buyers are coming off the sidelines. The GFC inspired a period of deleveraging in Australia, so buyers are in a great position today. Australia’s two newest market drivers are Chinese buyers & self-managed super fund (SMSF) investors. We are seeing a massive surge of Chinese buyers in Sydney but they are yet to really focus on Brisbane, with only moderate buying activity around St Lucia 16
where Chinese families are buying for their children who are studying at the university. In contrast, the Gold Coast has a large non-English speaking Chinese community, with more families moving from mainland China to join their relatives already living there. SMSF investors are looking around in Brisbane but more sales are occurring in regional areas including Toowoomba, the Sunshine Coast & the Gold Coast. There are nearly half a million SMSFs in place across the country & latest Tax Office figures show a 23% increase in the amount of SMSF money invested in residential property. Investors are active again in Brisbane’s inner city & suburbs just outside it including The Gap, Carindale, Cannon Hill & Ashgrove. Many investors had to sell their investment assets during the GFC but today’s low interest rates & high yields are bringing them back to property. The Sunshine Coast is enjoying a new burst of energy following a significant revaluation post-GFC. The new hospital & the redevelopment of Maroochydore CBD is exciting the market & competition is increasing among local upgraders, seachangers from Sydney & Melbourne & mining workers buying now with the intention of moving in when their industry slows down. First home buying has slumped to just 6% of the Queensland market, well off the long term average of 15%. However, young buyers are starting to realise that today’s low interest rates make property far more affordable than when the $7,000 grant was available. Some young people are breaking leases in order to buy now while great value is still available. According to RP Data, the number of Australian suburbs where it is cheaper to buy than rent has increased substantially over the past year. Brisbane offers the second largest number of cheaper to buy suburbs at 71 compared to 73 in Sydney. @johnmcgrath100 mcgrathestateagents
The McGrath Report Spring 2013 | 17
Gold Coast commentary The Gold Coast has been significantly oversold since the GFC but it is finally stabilising now, with both local buyers & many from Sydney & Melbourne taking advantage of once-ina-lifetime value, particularly on the waterfront. Suburbs once considered unattainable to the average family are now well within their budgets, & as confidence improves locals are deciding it’s now or never to upgrade their homes while buyers from the southern capitals move up for retirement or a seachange. John McGrath’s Top Picks ▪▪ Hope Island ▪▪ Isle of Capri ▪▪ Palm Beach
New market activity is being driven by historically low interest rates & a sense that the bottom has passed. Better sale prices across all price points are giving home owners the confidence to list after sitting on the sidelines for several years. Upgraders as well as Sydney & Melbourne families are competing for heavily discounted properties on the canalfronts of Isle of Capri, Sorrento & Broadbeach Waters, while downsizers are shifting into apartments at Burleigh Heads & villas at Mermaid Beach. There is significant new activity above $2M, with young professionals – particularly from the medical field upgrading in the $2M-$3.5M bracket, which is then fuelling the $5M+ market in prime beach & riverfront areas. Southport has experienced its highest level of sales activity in a decade, largely due to upgraders buying near the school & prestige buyers purchasing on the water. We believe the new hospital & light rail (opening 2013/2014) will have an impact on rental yields & ultimately property values. Highest growth
The 2018 Commonwealth Games will provide a significant economic boost, delivering 30,000 new jobs & $2B in economic investment along with the flow-on effects of exposure to 1.5B viewers around the world. The Games will stimulate three of the Gold Coast’s four biggest economic drivers – tourism, construction, retail & education. The creation of a Health & Knowledge Precinct with the new hospital, Griffith University & a new nearby commercial, residential & retail precinct that will replace the athletes’ village will add diversification to a local economy that is too reliant on vulnerable sectors. Brisbane & the Gold Coast represent substantial value as the third cheapest metro markets in Australia. South East Queensland is becoming increasingly attractive to Australia’s burgeoning downsizer market & families seeking a seachange. This is reflected in Bureau of Statistics data showing Queensland was the No 1 destination for interstate migration in 2012. ‘Fear of missing out’ will continue to propel the Gold Coast market, as will an improving local economy & the largest population growth of any Queensland area by 2021. Lowest days on market
HOUSES
1 Yr
3 Yr
HOUSES
COOLANGATTA
34%
4%
GILSTON
55
LOWER BEECHMONT
17%
6%
HIGHLAND PARK
70
TALLEBUDGERA VALLEY
14%
2%
BIGGERA WATERS
72
CARRARA
12%
-3%
MIAMI
72
SOUTHPORT
10%
-12%
HOLLYWELL
74
APARTMENTS
1 Yr
3 Yr
APARTMENTS
COOMERA
39%
29%
OXENFORD
77
HOPE ISLAND
21%
-3%
BURLEIGH WATERS
80
PARADISE POINT
15%
8%
MIAMI
91
CARRARA
11%
-4%
BURLEIGH HEADS
94
MUDGEERABA
11%
2%
BUNDALL
95
Highest number of Sales
Highest Rental Yield
HOUSES
HOUSES
Rent pw
UPPER COOMERA
292
BONOGIN
5.87%
$650
ROBINA
262
GILSTON
5.86%
$530
HELENSVALE
261
COOMERA
5.65%
$380
PACIFIC PINES
238
PIMPAMA
5.55%
$408
ORMEAU
231
HIGHLAND PARK
5.51%
$425
APARTMENTS
APARTMENTS
Rent pw
1,076
MOLENDINAR
7.47%
$370
SOUTHPORT
560
HELENSVALE
6.91%
$420
BROADBEACH
417
REEDY CREEK
6.88%
$340
HOPE ISLAND
387
CURRUMBIN WATERS
6.73%
$370
ROBINA
352
ASHMORE
6.70%
$335
SURFERS PARADISE
18
The McGrath Report Spring 2013 | 19
e x p e c t e x t raordinar y
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