Investor share of offers in the sub-$1 million bracket has dropped significantly since the Budget, local agent says
A sharp decline in investor activity on the Gold Coast is creating buying opportunities for first home buyers and downsizers in the sub-$1 million property segment, according to a local sales agent.
Image Property Gold Coast director Cameron Cullen (pictured top) said units and townhouses in the $700,000 to $1 million price range had previously drawn strong competition from interstate investors, but that dynamic had shifted markedly following the federal budget.
"Most properties in that high $700,000 to $1 million would ultimately always be a competition between investors, first-home buyers, and downsizers, with investors often coming out on top," Cullen noted. "Since the Budget, though, investors have gone from 50% of offers to just 10% in that entry-level price bracket, which means that locals homebuyers are transacting at levels I haven't seen in years."
Demand for entry-level two-bedroom units and villas remains strong, which Cullen said was continuing to support prices in the segment. "Prices might be falling elsewhere, but they're not here," he added. "We are still receiving multiple offers for entry-level properties, but it is owner-occupiers competing against each other, and not investors, now."
Suburbs drawing the most interest from first-home buyers and downsizers currently include Currumbin Waters, Currumbin, Palm Beach, Elanora, Burleigh and Tugun.
Cullen said conditions at the lower end of the market were providing confidence to both buyers and sellers.
"We have vendors who know they are likely to achieve a great sales price and we have buyers who are purchasing in a market with sustained upward price momentum," he explained. "Both of these factors means that everyone is happy, which is underpinning market conditions."
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