Some Gold Coast Suburbs could see 200 % price appreciation.
While the Gold Coast Property market has been hit harder than most,and is dinner table conversation in Sydney and Melbourne, it is really old news amongst Gold Coast homeowners as the fall in Gold Coast premium properties started nearly 2 and a half years ago but went widely unreported on a national basis. The falls on the Gold and Sunshine Coasts were more exaggerated, due to the number of second or holiday homes, which were deemed surplus to requirements as the GFC started to bite.
Prices in the highest prestige homes are down 50% from their highs, and as we all know from historical property cycles the previous peak is always bettered at the top of the next cycle, with some lucky buyers going to see 100% gains even when the previous peak is attained, let alone the gains from a new peak.
Now a horizon that was once littered with tower cranes is virtually blemish free as speculators have left the market.
Housing corrections of this nature rarely last more than 3 years and we could be about to see “the worm turning”.
Lets face it the Gold and Sunshine Coast’s are great places to live with winter temperatures the envy of most of the developed world, and as supply is drying up it will soon be overtaken by demand.
As is common with a bottoming of a market the rate of price decline has started to slow and in some suburbs like Carrara have witnessed 8% growth in the last quarter. Again looking at supply and demand the Local Property Guide in the Gold Coast Bulletin typically had over 200 pages last year, and is now just averaging 70 pages of houses for sale. There is a distinct lack of mortgagee sales and it appears that forced sellers are now out of the market, which should lead to more price stability.
Those dinner conversations we referred to earlier though, will not have taken into account the massive boost to the Gold Coast, if it wins the Commonwealth Games Bid and in particular to the suburbs surrounding the designated games stadium in Carrara.
The most significant rises are close the venue and in the case of te Gold Coast will benefit Carrara, Nerang, Worongary, Highland Park, Sorrento, Benowa and Ashmore.
Following the announcement that Glasgow is to host the 2014 Commonwealth Games, Dandara predicts that property prices in Scotland’s largest city are expected to soar. House prices in some areas of Manchester increased by nearly 200* per cent after the city hosted the Commonwealth Games in 2002.
The next two decades will see £1.6bn** ploughed into the Clyde Gateway and schemes such as Dandara’s iconic gh2o located on the River Clyde are already being snapped up by astute investors.
Hugh McGuinness, Sales Director of Dandara comments: “This is a fantastic win for Scotland and particularly Glasgow. If Glasgow follows the success that Manchester saw five years ago we will expect to see property prices dramatically increase.”
One confident buyer Henry Ainslie, a recent graduate, has already bought a stunning two bedroom apartment at Dandara’s gh2o and hopes to see the Games make him a ‘gold medal’ investment win.
Henry comments: ‘There is so much being invested in Glasgow particularly in and around the Clyde area. ‘gh2o’ seemed like an opportunity that couldn’t be missed. I’d done a lot of research into the area and it quickly become clear to me that buying at gh2o offered huge potential as a lucrative investment especially following the bid for the 2014 Commonwealth Games. Now that the city has won the vote I am even more pleased that I made the decision.’
gh2o, with its eclectic mix of contemporary studio, one, and two bedroom apartments is situated on Glasgow’s West End waterfront, close to where many of the 2014 games events will take place. The SECC and Kelvingrove sports centre, two major sporting venues intended for the 2014 commonwealth games are only a short walk away.
The Commonwealth Games will see the arrival of river taxi’s, improved rail travel, an extension of Glasgow’s underground and a network of cycle and footpaths which pass right in front of gh2o!
Henry continues: ‘I love Glasgow’s West End – it’s so dynamic and everything I need is there. As soon as I walk into my flat I have three floor to ceiling windows with amazing views over the West End and of the old Glasgow University buildings. The superb views, as well as this great opportunity to invest in Glasgow are the reasons I bought the apartment!’
Views of the River Clyde and the city can be enjoyed from glass balconies and terraces set in an eye-catching exterior that displays unique black, white and copper cladding.
Within the development there are 21 different styles of apartment and an impressive 95% of apartments enjoy river views. Kitchens have stainless steel appliances including hob, oven, fridge-freezer, dishwasher and mechanical extractor hood, all of which are cleverly integrated within the kitchen units. Each kitchen opens out onto the living area, making the most of these bright and spacious apartments and ensuring that great views are not just restricted to the living room!
Henry continues: ‘I love living here and I am thrilled that Glasgow’s bid for the 2014 Commonwealth Games was successful. It means a lot to the continuing success of Glasgow and will be great for my property too!’
With the London Olympic Games now less than two years away, latest research by Lloyds TSB indicates a mixed bag. The research measured house-price performance in 14 districts near the Olympic Park since the city was awarded the Games in July 2005. It found gains of 69 and 53 per cent respectively in Homerton and Shoreditch, significantly above the Greater London average of 36 per cent.
“Strong rental demand is already in place, particularly from those working on the construction of the Olympic site. This has meant strong yields for many investors in the area, which certainly does not encourage the sale of rental properties at this time in the market,” he says.
Naomi Heaton, CEO of London Central Portfolio, cites the analogy between London’s exclusive West End and the “deprived East End”, where the Olympic stadium is being built.
“As the international focus intensifies on central London in the run-up to the Olympics, it is likely that buying demand will increase. In a market in which only about 100 units are changing hands a week, it is likely that demand will significantly outstrip supply,” Heaton says.
“As far back as 2004, Halifax [a subsidiary of Lloyds Banking Group] claimed that the regenerative effects from hosting an Olympic Games generally had a positive impact on house prices. Looking at the four host cities between 1992 and 2004, its research showed prices rose 19 per cent more than the national average over the five-year period in the run-up to the Olympic Games. Five years before the Manchester Commonwealth Games in 2002, house prices in central Manchester were 23 per cent below the northwestern region. At the end of the Games year, they were 2.5 per cent higher.
“When the 2012 Games are over, the winners will be the smart investors who have recognised the added value of [central London].”