Coastal region experiences influx of young families, boosting local housing market

Optimism is spreading tentative tentacles through the coastal housing market in one struggling region



The Gold Coast has welcomed an increase in young families, with a 1.2% increase in the portion of youths under the age of 14, and a 1.5% increase in the number of adults aged 25 to 44, according to PRDnationwide research.

PRDnationwide research director, Aaron Maskrey, says key findings from a study completed in over 17 coastal towns around Australia demonstrates that unit sales on the Gold Coast coastal area have amounted to an average 80.5% of total residential sales over the past decade.

Maskrey says the research was taken across most of Australia's states and included Byron Bay, Coffs Harbour, The Entrance and Yamba in NSW; Agnes Water, Gold Coast, Hervey Bay, Port Douglas, Sunshine Coast, Whitsundays and Yeppoon in QLD; the Fleurieu Peninsula in SA; Bells Beach, Lakes Entrance and 90 Mile Beach in Victoria; and Broome and Dunsborough in WA.

"Since 2009, unit sales have by in large subsided to less than 1,500 sales per six month period, while the median unit price has declined 13.8% in two years," says Maskrey. “As at the December 2012 six-month period, the median unit price was $362,250, placing Gold Coast units at the affordable price levels of 2005."

Maskrey says a price points analysis of units sold reveals a contraction of 2% from units sold above $900,000 to amount to 8% of the unit market, and an expansion of 11% for units sold less than $300,000 to amount to 31% of the market.

"The Gold Coast house market appears to have reached its bottom of the cycle with a phase of sustained activity at around 400 sales per six-month period. The median house price has declined since early 2010, but has recently levelled off over the December 2012 six months. Early indications show buyer enquiry levels in 2013 to be higher with optimism spreading throughout the market." 

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