Month-In-Review-March-2015

Month in Review
March 2015
There are early signs emerging of an oversupply of
investment housing and units in Toowoomba with
the vacancy rate nearing 4%, having increased from
around 1% in early 2014.
With this in mind and in line with the easing
market activity recorded towards the end of
2014, it is predicted that the sub $450,000 price
point encapsulating the median price point of
approximately $350,000 will remain the most
active due to its affordability and broad appeal to
owner-occupiers as well as investors. This segment
is expected to continue to represent the broadest
segment of market activity for the remainder of the
year irrespective of rate cuts.
It is likely that investor activity will also remain
consistent with that seen towards the end of 2014,
as although there continues to be considerable hype
surrounding the Toowoomba residential property
market as an investor hot spot, there are reports of
easing interest, particularly from absentee investors.
Rate cuts may reduce the impact of any consequent
weakening in this sector.
As for owner-occupiers, especially those located
in the more established eastern suburbs of
East Toowoomba, Middle Ridge, Mount Lofty
and Rangeville, while rate cuts offer assistance,
consistent growth in line with pre rate cut
predications is expected.
Overall, interest rate cuts are not likely to have
a significant effect on sales volumes and prices.
However, these cuts will motivate the market to
maintain current levels of activity.
Gold Coast
In general, market conditions are slightly softer now
than at the end of 2014 and we may be suffering
a bit of a post-Christmas hangover. We are yet to
see a flow on effect of the recent interest rate cut
on the property market however it is still only early
days. We can only assume that market conditions will
pick up in the coming weeks as interest rates are at
an all-time low, everyone is now back at work after
the Christmas holidays, kids are back at school and
hopefully the wet weather of recent weeks will have
passed.
2014 was a good year for the whole Tweed Coast
property market. We saw an increase in buyer
activity across most market segments which led
to an increase in values for most properties priced
under $1 million. 2015 is shaping up to be just as good
with many local real estate agents reporting limited
stock on their books, having sold most properties last
year. This is in contrast to areas in the Tweed Valley
including Murwillumbah where market conditions
remain slow. These areas have not yet felt a flow on
effect from the coastal areas.
At the southern end of the Coast, the key areas
for investment will likely be Tugun, Bilinga and
Coolangatta in the under $600,000 price range.
These areas have not yet seen the same growth in
value levels as say Palm Beach and Burleigh and are
areas for both owner occupiers and investors due to
the proximity to the beach and airport and generally
strong rental returns.
On the central Gold Coast we have
seen an increase in positivity in the
local property market since the
rate cut but probably more so in
the prestige market ($1 million and
above).
Broadbeach Waters has been one of the best
performing suburbs on the central Gold Coast in
the past six months where values for waterfront
properties have firmed considerably over the past
12 months, particularly for property priced below $1
million.
Further north first home buyers have targeted
suburbs such as Southport, Labrador and Ashmore
around the $400,000 to $500,000 price point.
These areas provide a good standard of amenities
including schools, recreation facilities and substantial
retail precincts and relatively easy access to the
beach, Southport CBD, Gold Coast Hospital and
north and south bound M1 motorway and electric
Residential
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