The Investors Playbook 2022
With the release last week of the HTW (Herron Todd White) Valuers property report for March 2022, we have decided to follow the HTW lead and focus on investors and the investment market.
Last week, we had a raft of information about all facets of the property market but we do have a strong investment flavour. Investors are increasingly re-entering the market and whilst there is little doubt first home buyers are being priced out of the market, investors are currently filling that void as rents continue to rise.
Our feature story last week does in fact come from the HTW report. Their findings, particularly for the Robina & Varsity Lakes area, makes for interesting reading. Please see below.
The Investors Playbook 2022
There is no doubt investor activity has strengthened in and around the central hub of the Gold Coast over the past six months. Apartments within traditional investor locations such as Surfers Paradise and Broadbeach have been very popular of late, whereas pre-COVID-19 pandemic, demand levels were steady at best and there was generally a good supply of these units available on the market but stock levels this year have almost completely dried up.
The recent uplift in investor market activity can be attributed to a broad range of factors. Record low rental vacancy rates, the likelihood of increased tourist activity and higher occupancy rates for holiday letting properties post pandemic are among the factors that will help boost investor confidence in the apartment market space this year.
In regard to detached housing, the focus for investors has generally been on the more outlying suburbs where housing is typically more affordable. Investors face stiff competition from owner occupiers as enquiry from local owner-occupiers is far outweighing investor enquiry according to agent feedback. Property owners selling up in this market need to find a new home and with the tightening rental market, there is also greater motivation for renters to buy rather than remain in the rental market. It has become cheaper to buy into these suburban areas than rent and consequently demand has exploded.
With there being such strong competition for detached housing, investors have turned to other housing types (i.e. attached townhouse or villa units) and this has evidently driven up the entry level price points, particularly in areas such as Carrara and Mudgeeraba.
Looking towards Robina and Varsity Lakes areas and here the situation is very much the same for investors. Whilst investors are taking more interest in these more owner-occupier dominant suburbs, it has largely been owner-occupiers competing for detached housing stock.
Recent sales for entry level detached houses within Robina range between $800,000 and $900,000. Asking rental prices for a typical four-bedroom dwelling in this area typically range between $800 and $1200 per week. For townhouse products, recent sales are ranging between $500,000 and $800,000 and rental returns are generally between $600 and $900 per week Residential properties within the surrounding area of Bond University may be worth keeping an eye on in the next few months.
After being hit with the pandemic it is likely the university will be looking to bolster both their local and international student numbers again and these students will need rental accommodation within proximity of the campus.
Please see below the HTW Valuers property clock for both Houses & Units for the Month of March 2022
