The Gold Coast will be the outperforming region for real estate investors next year, new figures have revealed.
The key finding of a report released by SQM Research shows that house prices in the Gold Coast are expected to rise by 7%-11% for 2016, making it the hot spot for property investment.
The data also reveals that vacancy rates remain very low at 2% and rental yields remain elevated at 6%. Further, the Gold Coast has seen continued robust population growth of 2.5% per annum and strong employment growth conditions, whilst there has been no sign of a new building surge.
Managing director of SQM Research Louis Christopher says the positive data has meant that SQM Research has lifted its investment rating for the Gold Coast from 3 (issued in 2011) to 3.75 stars.
“Back in 2010 the Gold Coast housing market suffered a perfect storm of events that created a major dwelling price crash. A lot of those events have now dissipated and right now, there are many favourable economic factors which are helping to improve the region,” he said.
“We believe Gold Coast property investors are likely to enjoy good returns, both in rents and capital growth for up to the next three years.”