Market Snapshot 5.09.23
Summary:
$0 to $1,000,000 – Red Hot
A grade B grade C grade doing well
$1,000,000 to $2,000,000 – Hit and miss
A grade doing well, B and C taking a shaving on price
The Gold Coast market is currently a mixed bag. If anyone told you they knew exactly where it is now and where it is going, they're probably lying. The reality is that we are in uncharted waters. Some key indicators and case studies lead us to believe the market will warm up. Supply is low, demand is strong, and interest rates yet again have been put on hold boosting buyer confidence.
As a buyer’s agency, every single day, we are on the phone with local and interstate real estate sales agents, and they are all saying the same thing, "We do not know how much the property is worth; our vendors also do not know. We have been instructed to present all offers". This is common in this type of market, alongside properties listed without a price. We notice many off-market properties available as owners seek to test the market before committing to a complete online campaign.
Entry Level $0 to $1,000,000 | ‘Red Hot’
This week, FUTR property buyers agency witnessed 3 sales across NNSW, South GC and Northern GC, indicating this market segment is bubbling.
For example, 2/29 Nobbys Parade, Miami, is a low set brick du-plex within 1km of the beach, original brick and tile. All recent and relevant sales pointed toward a value of around $850,000 at the best. We went to the auction and witnessed 50+ attendees, 20+ registered bidders and 6 active bidders. It sold for $922,000, a record sale price for an original du-plex. Most bidders were young professionals, some with kids and a few elderly downsizers.
2/29 Nobbys Pde, Miami
In Tweed Heads West, we witnessed 19 St Kilda Crescent go under the hammer. This renovated 3 Bed, 1 bath family home was on a nice corner block in a flood-prone area. There was 20+ attendees, 3 + registered bidder, and the final sale price was $887,000. This was about $37,000 above what our price expectations were. This is a great price considering this pocket of Tweed. The attendees were a mix of downsizers and first-home buyers.
19 St Kilda Crescent, Tweed Heads
There was also an off-market sale on Chaffey Street in Tugun (3 Bed | 1 Bath). This renovated duplex close to the flight path sold for around $950,000. Smashing price expectations is another example of a property performing exceptionally well. Click on the link for a video walkthrough. If you would like access to off-market properties, don't hesitate to contact one of our friendly buyer’s agents today.
A grade, B grade and C grade stock are getting a lot of interest in the under $1,000,000 segment, leading to increasing open home attendance, offers and above-expected sale prices.
If you are looking in this price bracket, contact one of our friendly buyer's agents today to get access to more properties. This will increase your chance of finding one that ticks more boxes at a lower price. Today, we just got access to a newly renovated 2 Bed | 1 Bath | 1 Car fully renovated apartment with beach glimpses in Tugun.
Mid Level $1,000,000 to $2,000,000 | ‘Hit and miss’
We have noticed some record sale prices and then, surprisingly, people losing money on recently purchased properties in this price segment. Lets dive into some sales and listings in the South GC area.
20 Ardisia Court, Burleigh Heads, sold at the boom's peak for $1,180,000. 12 months later, in what the media portrayed as a "declining market," it sold for $1,320,000 with multiple offers, a $140,000 gain! This property was fully renovated and positioned nicely in Old Burleigh Town with 5 Bed | 3 Bath | 2 Car on 632m2.
20 Ardisia Court, Burleigh Heads
Meanwhile, over in Currumbin Waters, at 16 Larentia Street, the property was purchased 1 year, 4 months ago for $1,350,000. It has been on the market for 60 days and has a list price of $1,300,000. 16 Larentia is an example of a property declining in value over the last 12 months, likely due to the pressure of interest rate rises. Despite the feared mortgage cliff portrayed in the media, we are not seeing many of these sales.
16 Larentia Street, Currumbin Waters
We understand the examples above is only a tiny sample of the market. Right now, it is a very dynamic market that is shifting week by week as new buyers enter and leave.
The difference between some properties outperforming other properties is simply the quality of the property. A-grade properties are achieving record results, whereas B-grade and C-grade are sitting on the market for a while. If purchased at the peak, the owners are taking a haircut on the price.
General trends of A, B and C grade properties are as follows.
A Grade – Appeals to various buyers (upsizers, downsizers, FHB, investors and developers. Think of a flat corner block within 3km of the beach with a NE aspect. Other blocks with X factor, such as a cul-de-sac or perhaps with views/aspects. Generally, properties that are 100% finished are turn-key and have future development potential in quality pockets or streets. For example, Koala Park in Burleigh Heads, canals, or around Elizabeth Street Currumbin Waters.
B Grade Stock – Properties that are in ok locations and might need just a little bit of cosmetic work done to bring them up to date
C Grade Stock – Properties not in Ideal locations like main roads, close to the airport or flood zones. They may need a lot of structural and cosmetic work to become liveable.
If you want our $2,000,000 to $5,000,000+ market snapshot, please get in touch with one of our friendly buyer's agents today.
Thanks for reading, and if you are looking to engage a buyer's agent on the Gold Coast, contact us today. A buyer's agent can get you access to more properties than the average buyer. Increases your chances of finding one that ticks more boxes at a more competitive price.
