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Investors Return to Gold Coast

Investors Return to Gold Coast

Investors are returning to the Gold Coast’s apartment market, which is starting to show signs of life after the global financial crisis and over-supply caused by a four-year slump in prices.

It’s been a quiet selling season with the median price of a Gold Coast apartment at $355,250 compared to the three months to January at $360,000. Although, according to figures from Fairfax Media’s Domain Group the overall market is up which showed the quarter leading up to October 2012 at $340,000.

At the time of 2011 the population was 494,496, an increase of 14 per cent from 2006. There was also a 26 per cent increase in the population of retirees aged between 60-69 years old. With the population continually increasing there has been a huge demand for a housing market suitable for long-term residences not just those predominantly focused on tourism.

This has attracted investors not only from overseas but interstate – in particular Sydney and Melbourne, because property is cheaper than in their own cities. Singapore developer Ho Bee has a 223-apartment development, which should draw investors from China and not so much the local market.

However there is a limited supply of new properties, with only 634 apartments for sale in the March quarter according the Urbis report. There hasn’t been any new building built or started in the past 6 years, it is the longest void the Gold Coast has experienced of non construction in 40 years.