As we move into the middle of 2022, real estate investors are noticing a changing housing market, including an increase of buyer interest on the Gold Coast. Recent trends have shown that suburban investments can be a welcome addition to your real estate portfolio. Of course, it's important to make choices based on your personal requirements and situation with help from your professional advisors.
As people from cities continue to flock to the coastal lifestyle, property value reflects that. Let's take a look at some of the best suburbs to potentially snap up on Gold Coast.
Real estate and property value in Gold Coast skyrocketed in 2021. Andrew Bell says, "It was a great honour to elevate the Gold Coast property market to unprecedented levels and it was a great honour to represent our sellers and to achieve the incredible results that they are enjoying."
There are a number of Gold Coast suburbs that have seen a population increase, and even though it is slowing from the rapid movement we saw last year, more people are still moving than in 2019. Investment property interest has also increased. As noted in a recent Market Wrap, the population in the country is projected to have about 180,000 new arrivals, contributing to the appeal.
Suburbs are one of the most popular places for new residents to live, making them an important consideration for investors. Residents can feel a sense of community without living the quick-paced city life, all while having access to convenient amenities.
Just like any good investment, you should weigh the advantages and disadvantages when considering a new opportunity. There are some suburbs that may not fit into your future growth plan or current earnings goal. On the other hand, putting some money into suburbs with promising property growth could be a great idea.
There are quite a few reasons that suburban areas attract those seeking a new kind of investment property.
For one, the rental demand can be higher in these areas because of the natural community atmosphere that comes along with living in the area. Crime rates are typically lower outside of deep urban spaces and are usually more prosperous than in rural areas. Safety can play a big role for those looking to buy in suburban communities.
Because Gold Coast has benefited from the migration of families and professionals, suburbs in this area could be a good investment for someone looking to bulk up their portfolio. If you can get your hands on suburban real estate at an affordable suburb price, you could potentially see a high return in the future.
Many investors, when looking to make a return through rentals, keep a close eye on vacancy rates. In Gold Coast suburbs, vacancy rates have been at or below 1% since the middle of 2020, making it a smart option for investors. As of March 2022, the average vacancy rate is only 4% according to the Urban Developer. Because of this, suburbs are a fairly reliable source of income with a high rental yield.
Here are some of the most popular suburbs that may spark your interest:
This area is nestled on the edge of Gold Coast with a population of about 32,000. The neighbourhood has been growing in popularity and has seen an increase in development projects and housing constructions. It has been slowly revived into a trendy area with accessible amenities, which could make it a good investment for someone looking to make a return in the future.
One of the main draws of Coomera is its prime location for families. The area provides easy access to public transportation, Upper Coomera State College and a shopping centre called the Coomera Westfield Shopping centre. Because of these assets, the area is quickly developing and billions are being spent on new projects in the space.
One of the most popular suburbs in Gold Coast, Surfers Paradise is full of high-rise apartments and prime beach housing. Many love renting living space in the area because of the coastal lifestyle it offers and the high-end shopping that's available. This suburb is only going to grow in popularity and desirability as migration continues to flow to Gold Coast when it comes to property investment.
The Southport suburb has experienced a boom that impacted many other suburbs, such as Briggera Waters. Because Surfers Paradise has already seen a house price rise, the adjoining suburbs are likely to see a similar increase in popularity, which is what happened at Biggera Waters. As an area that is near the ocean, it can even access other neighbourhoods like Surfers Paradise and other Northern suburbs. For now, it remains relatively affordable for the increasing interest in the area.
As an inner suburb, many may glaze over the opportunity in Ashmore. It's located on the Nerang River and has plenty of resources that can draw potential residents. Some of these community centers include schools, shopping, public transport and a beautiful natural environment. This is another example of an area that has been boosted by the increasing interest in Southport and will likely only grow in popularity.
Investment yield projections for suburban areas are promising for an interested property investor. Though property price capital growth might be slowing, it is not likely to take a massive hit. For now, suburbs will remain relatively affordable, with the likelihood of a tidy return, as seen by the CoreLogic data that reports house prices rose by 24.5% over 2021. Keep in mind that these prices are likely to cool slightly.
To learn more about an investment opportunity that would work for you in a growing Gold Coast suburban area, visit Ray White Surfers Paradise today.