Buyers testing the waters

Vanessa Jones   |  12:01am March 23, 2013

WATERFRONT houses in the low million-dollar range are proving popular with buyers looking for affordable prestige properties, according to the latest McGrath Report.McGrath real estate agency founder John McGrath has identified the areas of the Isle of Capri, Mermaid Waters, Benowa and Sorrento as prime examples of good buying.He said while the Gold Coast remained one of Australia's best value markets, recent activity suggested the bottom of the cycle had passed."There's a noticeable change in sentiment, with more sales occurring and higher buyer inquiry across the board," he said. "Prices are still well below their pre-GFC highs but homes are selling in a more reasonable timeframe. We may not see major price growth this year, but we'll definitely see more sales."Coverage of the Gold Coast slump has been widespread and this has encouraged a lot of interstate interest among investors and seachangers, particularly from Sydney and Melbourne."Mr McGrath said about 50 per cent of buyers were from out of the area and seeking affordable waterside property or growth investment."Investors usually buy at the lower end -- typically apartments -- but the opposite is true on the Gold Coast, with investors competing against local upgraders for larger family homes in canal suburbs."The prestige sector is also firing up, with several $5 million-plus transactions since November.Real Estate Institute of Queensland Gold Coast zone chairman John Newlands said there had been a definite pick-up in buyer activity from those specifically looking for waterfront property."We've noticed a spike in the late $600,000s to $900,000s price range which is the entry level for these types of properties," he said."We had a house on the Isle of Capri which was listed at $795,000 and we had 13 groups through on the first open for inspection which resulted in a sale. People are realising there are some great opportunities to buy properties that in better times were selling for 25 to 30 per cent more than what they are currently, so they are positioning themselves for the future."He said properties on main river or canals were unlike many other types of properties because tidal waterfront homes were a limited supply."It's all about supply and demand. People know the chance to recreate them again are non-existent so they know they are going to have good capital growth as this opportunity won't arise again," Mr Newlands said. "A lot of these suburbs are well located close to schools, infrastructure and shops and from a boating point of view you can be out on the aquatic playground in the Broadwater in a matter of minutes."Professionals John Henderson Real Estate principal Andrew Henderson said Mermaid Waters stock in the $700,000 range was selling well."Potentially, if you get the right property you could sell it on the same day," he said."Our open homes are being a lot better attended, especially in the sub-million mark and there is a definite lack of stock in properties priced in the $700,000s."People are getting more confidence because there is better affordability, lower interest rates and prices have come down."He said with many retirees choosing to downsize after living in one house for 20 to 30 years, buyers could pick up great renovators on the waterfront to transform into family homes.

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