Review March 2022
- Posted By David Brown
For an insight into the current property market, HTW (Herron Todd White) releases a monthly update and Property Clock every month. HTW are one of Australia's leading property valuers. This gives a fair idea as to what to expect from the property market in the coming months.
HTW is a reliable source into the current property market as they are the ones doing the finance valuations that will determine if people get finance or not. It is good to know how much confidence they have in the market and where they believe it will head.
Here is the latest property clock and the Meridien view on what is happening in Australian property markets. For property market watchers, have you ever seen the property clock void of markets in decline or at the bottom of the market? Interesting times indeed and understanding the micro-market opportunities will be a key factor for investors as we move into 2022.
Western and Northern Corridor Gold Coast
Over the past six months western and northern Gol Coast has experienced improved investor activity. The most popular established suburbs are Pacific Pines, Maudsland, and Oxenford as it is still offering detached homes without the exorbitant price tag. It offers the potential for good capital growth and strong rental yields. Since the start of 2021 land values alone have increased by up to $150,000. The drivers of this price growth have mainly fuelled by local investors and owner-occupiers. Pacific Pines and Oxenford have a very high concentration of duplexes and townhouses. Due to the large increase of rental prices in suburbs surrounding Gold Coast’s CBD, the northern and western suburbs have become more appealing. In result agents are reporting the vacancy rates have reached an all time low of 1%. Townhouses in Pacific Pines are now priced between $400K to $450K as entry level and up to $550K for more modern and better quality townhouses. At the beginning of 2021 a 3-bedroom, 2-bathroom was achieving a weekly rental income of $400 and $450 per week. Now those same properties are being rented out for $500 and $550 per week. As the markets around the CBD continue to be unaffordable for many buyers, the northern and western regions of Gold Coast seem to be a good option for those trying to break into the market.
Toowoomba
Over the past year there has been increased demand I the Toowoomba region. Low stock, record low interest rates, high consumer confidence, and the fear of missing out have all contributed to the rapid price growth in the region. Even with the recent price growth. Toowoomba still is one of Queensland’s most affordable cities, particularly for interstate buyers. In result, long-term investors have decided to sell as they can get prices significantly above the listing, due to multiple offers per property being made. Detached homes have performed the best over the past 18 months. Toowoomba’s median house has risen by 26.32% in the past year. Although unit prices haven’t risen as drastically as house, they increased by 9.69%. Toowoomba is experiencing some of the lowest vacancy rates with it staying around the 0.5% mark. As vacancy rates continue to decrease, in result it has pushed up rents, in a market that is already seeing record numbers.