Hot Gold Coast investment opportunities - September 2024

By Rich Harvey, CEO & Founder, propertybuyer.com.au

For decades, the New South Wales Central Coast region was in a property market holding pattern. It was flying under the radar of homebuyers and investors alike. But COVID’s significant upheaval brought the region into the limelight. Now, a raft of drivers across the political and economic spectrum will deliver exciting times to the Central Coast – and those who own property will be among the biggest beneficiaries.
Anthony Knight, Principal buyers’ advocate for Propertybuyer on the Central Coast, has lived in the region for decades. We recently chatted about the region and why he’s excited about what’s to come.

The glamour of the Gold Coast is well known to most Aussies – particularly holidaymakers. Of course, many gaze across the white sands during their downtime and dream of owning a small slice of this heavenly region.

For most genuinely attempting to make this a reality, the first step will often be an investment property. So, what are the options for those looking to buy on the Gold Coast?

Our local Propertybuyer expert, Angela Murray, shared her thoughts on how investors are making impressive returns in this picturesque region.

Investment with a twist

Angela said the Gold Coast is no stranger to investors, but one trend of late has been an uptick in those looking for an asset with a value-add twist.

It seems purchasers are taking a sensible, long-term view and selecting homes that can generate decent income now but can also be improved to deliver a bounce in value through a little planning and some upgrades.

To this end, allotments of good size with appropriate Low Medium Density zoning for subdivision are proving popular. For example, an RD2 zoned site allows a minimum lot size of 300 square metres, while an RD3 site has a 250 square metre minimum lot size. Buy a home or duplex on a large allotment zoned RD2 or RD3, and you could make some impressive gains in the right market.

Angela said she’s recently purchased a property for a client in Labrador for $1.06m which comprised 787 square metres of RD3 land improved with a duplex and within 500 metres of the Broadwater. The buyer is looking to live in one of the units for now but plans to eventually split the blocks and upgrade the improvements.

This example demonstrates a key component of successfully investing in this type of asset. At a time when construction costs remain high and builder timeframes are long, some of these projects won’t be feasible right now, but patience will pay dividends. Many Gold Coast suburbs already enjoy year-on-year gains running well above five per cent. Even if you don’t do a project, there’s a very good chance a well-selected asset in the right suburb will rise in value at an impressive rate over time.

Locations of interest

So, what are some locations where you might buy an investment and reap rewards under $1 million on the Gold Coast? Here are a few example locations, illustrating the potential.

Labrador is well worth watching with a 10-year average annual growth rate of 8.48 per cent. This area is dominated by traditional sized blocks with established homes and multi-residential structures. Many will benefit from renovation or redevelopment. You also can’t beat the location with a short drive to the Broadwater, Southport shopping and commercial, and a short 7.4-kilometre drive to the famous Surfers Paradise glitter strip. If you search hard in Labrador and are a bit savvy, there are still opportunities to invest for under $1 million. This pocket being close to the Broadwater is a good location for long-term investors and the price point will seem like a veritable bargain to many Sydney buyers.

Another suburb worthy of attention is Merrimac. This is a family-friendly address located within a 6.1-kilometre drive of Robina Shopping Centre and 9.1-kilometre drive of Mermaid Beach. Its median house price sits at $996,000 and its 10-year average annual growth rate is an impressive 8.4 per cent. The area also appeals to a wide range of buyers including young families, professionals and retirees. The opportunity to add value here is extremely good.

The lakeside suburb of Coombabah is on our short list too. It’s adjacent to the popular addresses of Paradise Point and Runaway Bay and has ready access to the M1. There is plenty of water-centric lifestyle to enjoy, and with a median price of $920,000, many buyers will get a look in. This sort of money should secure a three-bed home on a good-sized block. Coombabah has also seen a 10-year average annual growth rate over eight per cent which makes it an attractive holding proposition.

Then there’s Highland Park, an elevated suburb which provides excellent vistas for most residents. The area is extremely well serviced and has easy access to the M1. There are decent sized blocks on offer and the median house price of $997,500 remains very accessible. It’s well positioned between Nerang – which has a 10-year average annual growth rate of eight per cent – and Carrara and its 10-year average annual growth rate of 8.39 per cent.

Angela emphasised the importance of acting quickly for investors. As property values in many suburbs continue to rise annually, potential investors may find themselves priced out if they wait for a "bargain." The current market is relatively balanced, making it a good time to buy, but once interest rate cuts are announced, a buying frenzy is likely. Additionally, with experts forecasting that properties on the Gold Coast will be nearly impossible to find for under $2.5 million by 2030 due to the upcoming 2032 Olympic Games, the urgency to act swiftly is clear.

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