The latest Reserve Bank of Australia (RBA) decision to keep the official cash rate at the low level of 2.5 per cent for another month could be encouraging for those interested in purchasing their own commercial real estate in Surfers Paradise. This is the 17th consecutive month of steady interest rates, which have also been at lower figures than ever before, helping to stimulate house construction and demand for real estate.
RBA Governor Glenn Stevens said the growth of Australia's economy was moving along at a steady pace, with inflation running between a comfortable 2 and 3 per cent. He explained that the RBA would keep monetary policy accommodative in order to continue fostering strengthening economic conditions.
The Housing Industry Association (HIA) has highlighted that the current 17 month period of interest rate stability is tied with two others for second as the longest in Australia's history.The longest wasafter 19 months of stability recorded between December 1994 and June 1996. HIA chief economist Harley Dale said there were no signs of the RBA changing the policy any time in the future, which could be even more encouraging for buyers sitting on the fence about their own movements into the Surfers Paradise commercial property market.
"We remain of the view that the official cash rate will be on hold until well into 2015 and that will help sustain the strength in national new home construction activity. This sector is a very important driver of domestic economic activity," said Mr Dale in a 2 December statement.
"We've just seen an impressive update for Australian Bureau of Statistics building approvals supportive of very elevated levels of new home construction persisting into next year. However, approvals have effectively tracked sideways through most of 2014.
"New home building taking a further step up will require policy makers to step in and undertake significant reform, not sit back and expect record low borrowing costs to generate a fresh round of upward momentum."
These figures could be encouraging for those interested in moving into the local commercial real estate market and building a property portfolio in Surfers Paradise. With the anticipated growth of tourism and business in the future, investors could grow their wealth while also giving something back to the local community in economic terms.
For example, earlier this year the City of Gold Coast announced plans to give Surfers Paradise riverfront a makeover, bringing the area into the future and providing a new sheen to the tourist-heavy spot in Queensland. In collaboration with the Gold Coast Waterways Authority, mayor Tom Tate said unlocking the enormous potential in the riverside was an exciting way to help promote the region.
"We've long identified that the riverside offers enormous potential, so it's exciting to be teaming up with Gold Coast Waterways Authority to breathe new life into the area. This investment will create new tourism opportunities and new water transport options which will draw greater numbers of people to the riverfront and surrounding areas," said Mayor Tate in a 15 August statement.
This is just one of the many endeavours being undertaken in the region to help boost the tourism figures and aid the development of the Surfers Paradise economy. As the area continues to grow, the potential for earning great returns on commercial investment increases, which could entice investors interested in moving into the region.