Property legend’s top places to buy at Gold Coast
One of Australia's most highly regarded property commentators has revealed his top tips for investors looking to buy on the Gold Coast.
Property analyst and industry veteran Terry Ryder said while the Gold Coast's rental market had taken a hit from the impact of coronavirus lockdowns, some markets appeared relatively untouched.
Rental demand has plummeted in areas heavily reliant on tourism, where many apartments are now sitting empty. While the rental downturn is likely to be temporary, Mr Ryder said anyone focused on investing should look to markets with capital growth that appeal to "real Gold Coast residents".
Mr Ryder said areas dominated by owner occupiers continued to represent solid investment for eager buyers and one particular Gold Coast precinct should be on investors' radars.
"When we're talking about investing, we want to look at what I would call the 'genuine residential markets' where real residents of the Gold Coast live and work, rather than in high rises where we're seeing those high vacancy rates at the moment," Mr Ryder said.
He said demand for housing in the Labrador and Southport area had remained constant throughout the pandemic with a rental vacancy rate of 2.5%.
An ideal vacancy rate, the figure representing how many empty properties are available to rent, is about 2% with a higher number indicating market oversupply and a lower number indicating a shortage of housing.
"Within the Southport, Labrador precinct itself, apartments and houses are still relatively affordable," Mr Ryder said.
"The area is close to infrastructure, close to the Gold Coast University Hospital - the centerpiece of what's known as the health and knowledge precinct and that includes the hospitals, Griffith University and more broadly the Southport School and light rail link.
"So we've got a cluster of medical and educational facilities… and any market within proximity to that sort of jobs node will have a high demand for buying and renting.
"Infrastructure is a big driver of capital growth. The affordability of the area just adds to its attractiveness for investors."
Houses in Southport and Labrador are selling for between $400,000 and $500,000 while apartments can be purchased for about $300,000.
Mr Ryder also said there was good value to be found in nearby suburbs with similar characteristics - including Ashmore, Arundel, Molendinar, Parkwood - and the Gold Coast's northern suburbs.
"Investors will find affordability in the northern growth corridor heading towards Brisbane in suburbs including Coomera, Pimpama and Ormeau where median prices are about $400,000 - lower than many other Gold Coast suburbs," he said.
Originally published as Property legend's top places to buy on Coast