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IT MAY not seem to have the bite of some of his other tips, but if property analyst Michael Matusik is to be believed Gold Coasters on the hunt for an investment unit could do worse than asking for advice from their dogs.
According to the director of Matusik Property Insights, the Gold Coast real estate market is on the path to overheating yet again.
However, he had some tips for investors that could see them sail through some stormy investment seas, including making sure any purchase is in a pet-friendly complex.
A report released by the Australian Bureau of Statistics shows the city had more than 5500 dwellings approved in May — 2724 new houses and 2805 units. Of the units 1416 were in Southport, raising fears of a unit glut.
However, Mr Matusik said the market was tracking well and in a good position compared with the inner-city Brisbane market.
“There isn’t anywhere near the level of approved market supply to demand as there is in Brisbane,” he said. “On the Gold Coast developers are not building enough stock to meet demand. Overall the market seems to be okay, however the wrong type of stock is being provided.”
He said the Commonwealth Games were an artificial marker in the Gold Coast’s property cycle which may contribute to the market overheating.
“You’re not seeing enough smaller product, say up to five storeys in height, being approved.”
Mr Matusik said while the beach was a strong lure for developers who preferred to target suburbs such as Surfers Paradise, the reality was that most jobs on the Gold Coast would be medium-paid in the future so many residents would be struggling.
“There is also an ageing market so we will see lots of downsizing with homeowners moving to apartments. Unfortunately, if demand dries up and sales in big box developments don’t settle than the banks will make developers sell.”
He said drops in demand had less effect on smaller developments.
As far as investors looking for suitable product, Mr Matusik had a few tips including quality finishes, location and pet friendliness.
“More than 64 per cent of Australians own pets. That increases as you get older so it makes sense,” he said.
REIQ Gold Coast chairman John Newlands said the release of units from the Commonwealth Games athletes’ village could spark a glut.
“There could be the challenge of oversupply there,” he said.
However, he said strong population growth would help absorb market surplus in coming years.
Article sourced from Gold Coast Bulletin: http://www.goldcoastbulletin.com.au/news/sun-community/real-estate-gold-coast-spots-with-a-lot-of-pawtential-if-petfriendly/news-story/f068473fa7cf097e25e0ecbca53e6913