Suburbs in the low end of the Gold Coast property market are expected to surge ahead this year, spurred on by first home buyers, low interest rates and declining property values. A PRD property watch study predicted Oxenford, Helensvale, Labrador, Merrimac, Mudgeeraba, Robina, Reedy Creek, Tweed Heads, Casuarina and Murwillumbah would become hot spots in 2009. Proximity to the M1 and major shopping centres, as well as low median house prices, are expected to boost Oxenford, Helensvale, Merrimac, Mudgeeraba, Robina and Reedy Creek. The report said most sales would occur in the sub $500,000 bracket, largely due to the global financial downturn. "The First Home Owners Grant is also boosting the lower end of the market and we see 2009 as being the year to purchase real estate," said the report.
"Interest rates are at their lowest level in four years and are expected to go lower, developers are offering incentives and discounts such as rental guarantees, vendor finance, furniture packages and price discounts to entice buyers to their developments. "All of these factors are making it a buyer's market." Oxenford, with a median house price of $453,750, is expected to attract developers looking for parcels of land close to key infrastructure, while across the road at Helensvale units are predicted to be popular due to affordability, access and proximity to the local Westfield shopping centre. The well-established suburb of Labrador, with a median house price of $420,000, is expected to draw buyers keen to snag a bargain by the Broadwater or wanting to redevelop large lots. The rapidly growing Robina, with its commercial hub, major shopping centre and key transport links, is expected to boom this year while the rural settings of nearby Mudgeeraba, Merrimac and Reedy Creek should also be favoured. "Mudgeeraba is located in the Gold Coast Hinterland and is the gateway to the Springbrook National Park," said the report. "It is generally considered a rural hinterland suburb and has some acreage blocks, but its close proximity to the M1 and major infrastructure and shopping across the M1 at Robina makes it a desirable location." Real Estate Institute of Queensland chairman Peter McGrath agreed with the hot spot picks but said, in his opinion, the most important one had been overlooked. "Surfers Paradise is still the heart of the Gold Coast and the tourism capital of Australia and people assume property is very expensive but in actual fact there's still a high turnover and there's such a diversity of units that there is some very good value," he said. Mr McGrath said the Hilton and Soul projects and redevelopment of the foreshore were major local stimulus.
He believed Coomera, while still popular among young couples, would plateau until the town centre was built and created local jobs.
Mr McGrath also said beachside suburbs would be excellent assets in the long term, but only had a limited buyer market during the global financial crisis.
New apartment projects and a revamped CBD is expected to make Tweed Heads a property hotspot while the beachside suburb Casuarina has relatively affordable land at $350,000.
Murwillumbah, which sits on the picturesque Tweed River and under world renowned Mt Warning, continues to offer affordable property.