Media release - 20^th May, 2013

Property enquiries up 60% on the back of improving economic conditions

Buyer enquiry in Mermaid Beach and Surfers Paradise up 60% compared to the same time last year
Average days on market in Pacific Pines have dropped 50% since 2012
Investors and retiree buyers take advantage of low rates and affordable property prices

Strong demand and lower lending rates have brought traction to residential sales on the Gold Coast, according to leading property group, Raine & Horne, with multiple local offices reporting confidence in the sun-drenched region is up by 60%.

“After a quiet period in consumer confidence, favourable winds are once again inflating the sails of the Gold Coast’s residential property market,” said Angus Raine, CEO of Raine & Horne, who added that economic conditions are now just right for many buyers and investors to capitalise on the region’s undervalued residential property.

Indeed, Raine & Horne offices are reporting a substantial rise in open home attendance numbers and Mr Raine says the RBA’s recent decision to slash the official cash rate to 2.75% – the lowest level in 54 years – will encourage further confidence in Queensland property.

“Most of the big banks have passed on the rate cut in full and Raine & Horne is already registering a rebound in optimism as Queensland buyers take advantage of the low rates to secure a home,” said Mr Raine.

Indeed, April data from the Real Estate Institute of Queensland (REIQ) revealed that property sales on the Gold Coast jumped by 8% over the last 12 months.

Kae Beadman, Principal of Raine & Horne Mermaid Beach, revealed that buyer enquiry in her market has swelled by 60% compared to the same time last year.

“We are definitely seeing a marked improvement from purchasers with a genuine intent to buy this year,” she commented.

Ms Beadman said baby boomers are driving activity in her market, as they look to downsize from million-dollar homes into upmarket, waterfront apartments.

“Units are turning over more quickly than houses, and apartments priced between $700,000 and $1.2 million close to the water are proving popular with downsizing retirees,” said Ms Beadman.

To illustrate this point, Raine & Horne Mermaid Beach recently sold a three bedroom beachfront apartment at 8/20 Marine Parade, Miami, at auction for $745,000.

“Many retirees no longer need the space of a larger home and prefer to opt for a small residential property with enough cash left over to put into their super,” said Ms Beadman.

For Clark Brackenridge, Principal of Raine & Horne Surfers Paradise, it is investors that are spearheading the recovery in his market.

“The first quarter of 2013 has been the strongest quarter in Surfers Paradise for nearly seven years,” said Mr Brackenridge.

“Our sales volumes are up by around 60% and there is more impetus from investors with self-managed super funds.”

In the Gold Coast’s north, Julian Porter, Principal of Raine & Horne Oxenford and Raine & Horne Pacific Pines, said motivated buyers have swelled at open homes, especially in the last two months.

“Buyers are competing more fiercely for property and our average days on market have dropped by 50% compared to the same time last year,” he said.

According to Mr Porter it is a combination of lower lending rates coupled with extremely good buying value in the Gold Coast region that is spurring demand, even at the higher end of the market.

“We are currently negotiating with a buyer on a property priced just below $1 million,” said Mr Porter, who notes that if the sale proceeds, it will be the highest sale in the Pacific Pines region in the last three years.

Mr Porter added, “While momentum is building and confidence has improved, the market is still price-sensitive and vendors pricing their home to market conditions will find the prospect of securing a sale better than it has been for many years.”

-ENDS-

For further media information please contact:

Angus Raine, CEO, Raine & Horne on 0409 920 697

Andrew Harrington, National Marketing & Communications Coordinator on 02 9258 5400

Gold Coast market rebounds as buyers hit the ground running