SOUTHPORT is emerging from the shadows of Surfers Paradise as an investor hotspot, according to a new report.
The Hotspotting National Top 10 Apartment Hotspot report revealed the top apartment locations for the next six months with Southport the only Gold Coast suburb to make the list.
Hotspotting director Terry Ryder said apartments were outperforming stand-alone houses this year in a number of ways, including faster growth in rents, superior price growth rates for much of the past 12 months and a growing share of new dwelling approvals.
“There is a plethora of reasons why apartments are increasingly becoming the property of first choice for homebuyers and investors,” Mr Ryder said.
“It’s not just about affordability – although that plays a big role in our largest cities – but our population is simply embracing apartment living more because of the opportunity to reside in more desirable locations as well as having easy access to lifestyle precincts.
Southport’s median unit price was $505,000 with 764 sales over the past 12 months.
It recorded a vacancy rate of just 0.6 per cent with a 6.1 per cent yield.
Hotspotting general manager Tim Graham said the 2018 Commonwealth Games left Southport with a major legacy – extensive infrastructure.
Now, major new enterprises are adding to the precinct’s reputation as a centre for economic activity, employment, and enterprise, he said.
“The Games was the catalyst for the light rail network and the $1.8 billion Gold Coast University Hospital,” Mr Graham said.
“The latter forms part of the Gold Coast Health and Knowledge Precinct, predicted to have 26,000 jobs when completed.”
Mr Graham said Southport was also declared a Priority Development Area by the Gold Coast City Council in 2013.
“Southport has undergone serious gentrification since then, introducing vibrancy to what was an older-style suburb, bringing diversification of industry and catering for population growth,” he said.
“This, together with the lifestyle advantages of this precinct – including access to The Broadwater – augurs well for the property market as job opportunities expand.
“Vacancy rates here are low and usually more stable than the Gold Coast tourist spots that attract the transient population, and prices are more affordable.”
There is also a higher-than-average number of renters seeking homes, providing openings for investors, Mr Graham said.
“The median price for houses here is $850,000 but units are around $500,000, providing a high level of affordability and yields above six per cent, supported by vacancies well below one per cent,” he said.
Amir Mian, of Amir Prestige is marketing 4 Drury Ave, Southport — a rundown Queenslander house on a sprawling 1057sq m block.
“This would definitely suit mum and dad investors or someone who can see the redevelopment potential here,” Mr Mian said.
“I could see six villas built here — you can literally walk to the schools and shopping centres and HOTA is nearby. It’s a really great precinct there.”
Mr Mian said Southport was a central suburb that offered a lifestyle suited to a lot of buyers.
“There’s a huge market for people who want to be central on the Gold Coast,” he said.
The property goes under the hammer on September 29.
Article source: Queensland Property Investor