Buyer demand dropped in popular Coast suburbs
Home buyers have hit pause in some of the Gold Coast’s most popular markets, revealing opportunities for savvy investors in areas where listings are up but demand has nose-dived.
Latest PropTrack data shows top picks for investors not spooked by the rising cost of living to capitalise as Queensland’s hot market starts to cool.
For houses, Varsity Lakes, Tamborine, Palm Beach and Burleigh Heads had the biggest drop in buyers over the past 12 months, coupled with a lift in stock hitting the market.
The research analysed engagement with listings for properties for sale on realestate.com.au.
In Varsity Lakes, 15 per cent fewer buyers were house-hunting compared with the previous year. Numbers were down 13 per cent in Tamborine and Palm Beach.
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Beachside Miami notched up the state’s largest increase in house listings at 37 per cent, although it was tempered by a less drastic drop in demand at 7 per cent.
Listings were also up in Elanora by a healthy 29 per cent.
PropTrack economic research director Cameron Kusher said the data showed supply was increasing, the rate of sales was slowing and buyers had more choice.
“As a result, there’s not that sense of urgency,” Mr Kusher said.
He said demand was well down in some areas which had experienced big price rises during the pandemic.
“These markets don’t look affordable like they used to because of how strong price growth has been,” Mr Kusher said.
“And the demand for coastal lifestyle markets is nowhere near as strong as it was.”
Prices in Palm Beach soared through the pandemic
With FOMO — or fear of missing out — fading into memory, Harcourts Coastal agent Guy Powell said homes were typically taking up to eight weeks to sell.
“Prices are still holding and are quite strong for what’s actually transacting, but days on market are pushing out as buyers now have more stock to choose from,” Mr Powell said.
“Late last year, buyers had to make a decision on the spot or they’d miss out.
“Now, they are coming back two or three times and I just see buyers are a bit more cautious at the moment,” he said.
Current conditions were most favourable for home owners buying and selling in the same market, or those investing for lifestyle rather than quick capital gains.
Elanora has seen a spike in new listings this year
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“People who are buying for their family or for the lifestyle and are focusing on a five or ten-year turnaround will be fine,” Mr Powell said.
“People who are looking for a 12-month turnaround may need to consider their options.”
For units, Reedy Creek and Palm Beach were best buyer markets, with 13 and 18 per cent less buyer engagement for listings in those suburbs respectively.
Unit listings were up 14 per cent in Palm Beach, and 5 per cent in Reedy Creek.
Coomera, Burleigh Waters and Mermaid Beach also presented good opportunity.
Mortgage broker Dane Disney said he had been inundated with inquiries from people wanting to buy a home, but many were hesitant to proceed amid rising interest rates.
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“First-home buyers are feeling the pressure trying to get into the market in the current housing crisis and dealing with rental unaffordability,” Mr Disney said.
But Mr Kusher said buyers who could afford to wait would likely benefit more from a drop in prices.
“If you’re trying to get into some of these areas, remember it’s still very early in the slowdown and the situation is probably going to get more favourable the longer you hold out,” he said.
“Be aware there’s not as much demand out there and you might be able to negotiate a better deal.”
>>>>BEST BUYER MARKETS<<<<
Houses
Varsity Lakes
Tamborine
Palm Beach
Burleigh Heads
Units
Reedy Creek
Palm Beach
Coomera
Burleigh Waters
source: PropTrack
The post Best buyer markets revealed as FOMO finally over appeared first on realestate.com.au.