Surf’s up as investors return to South East Queensland real estate
Media release - 9th April, 2013
Gold Coast and Brisbane properties in the sights of investors
- The Real Estate Institute of Queensland (REIQ) has revealed property sales on the Gold Coast jumped by 8% in the 12 months to the end of December 2012
- Raine & Horne Surfers Paradise recently sold three sub-penthouse apartments in Paradise Waters for over $1.5 million each
- Properties priced below $500,000 are attracting investors to Upper Mount Gravatt in Brisbane’s south
- Three bedroom homes in North Lakes start from $315,000 and are generating yields between 5% and 6%.
South East Queensland is enjoying a new wave of investor activity triggered by low interest rates, affordable housing, and sharemarket concerns in the wake of financial challenges in Cyprus.
“With these factors in mind, many investors are choosing the safety of bricks and mortar in undervalued South East Queensland as a safe place to stash their cash,” said Angus Raine, CEO of Raine & Horne.
“After years of correcting prices, coastal property in Queensland has returned to favour with both local and interstate investors,” added Mr Raine.
“The first quarter of 2013 has been the strongest quarter in Surfers Paradise for nearly seven years,” said Mr Brackenridge.
“Our sales volumes are up by around 60% compared to the December 2012 quarter, and there is more impetus from investors with self-managed super funds.”
To illustrate this point, Raine & Horne Surfers Paradise recently sold three sub-penthouse apartments in the prestigious Grand Mariner building in Commodore Drive, Paradise Waters, for over $1.5 million each.
“These sub-penthouses were on the market for up to 12 months and we sold one of them to an investor with a rental expectation of $1,200 per week.”
In Brisbane’s south, savvy investors are also buying into suburbs such as Upper Mount Gravatt, on the back of low interest rates and realistic vendor expectations.
“Confidence is high and we’ve noticed a jump in investor enquiry since the beginning of the year,” said Bill Hooper, Principal of Raine & Horne Upper Mount Gravatt, who added that the majority of investors are chasing properties priced below the $500,000 mark.
As an example, Raine & Horne Upper Mount Gravatt sold a three bedroom home with a studio in Hammersmith Street, Coopers Plains, for $450,000.
“The investor that bought this property is expected to receive $480 per week in rent,” said Mr Hooper.
Investors are also making their presence felt in new suburbs such as North Lakes, north of Brisbane.
Steve McDade, Principal of Raine & Horne North Lakes, said investors can also pick up a great property in the northern Brisbane suburb.
“Investors in North Lakes are realising that the sky isn’t going to fall on their heads and that the economy is reasonably healthy.”
According to Mr McDade, the picturesque properties in the Stocklands master-planned community start from $315,000 for a stylish three bedroom home with a potential yield of 5% to 6%.
For further media information contact:
Angus Raine, CEO Raine & Horne, on 0409 920 697
Andrew Harrington, National Marketing & Communications Coordinator, on 02 9258 5400