HOPE Island has once again emerged as the strongest market for units and townhouses on the Gold Coast with its second consecutive year of growth in median price, according to the latest data from the Real Estate Institute of Queensland (REIQ).
Its December quarter report for 2012 shows the overall median price for units and townhouses on the Gold Coast dipped by 3.7 per cent last year.
While this was still a decline, it was a lower drop than the -5.3 per cent downturn the market recorded the previous year.
Most suburbs recorded declining prices compared to the previous year but several managed to regain some value.
Broadbeach gained 11.8 per cent to record a median price of $522,500 after falling 1.4 per cent between 2010 and 2011.
Similarly Miami jumped 5.5 per cent to end the year at $343,000 after dipping 11.6 per cent the previous year.
The real standout for units remained Hope Island where they surged 18.6 per cent to $485,000 after finishing 2011 at $409,000 on the back of 2.3 per cent growth.
Ray White Hope Island team leader Jose St Ange said the improvement in the area was being driven by a number of factors including dwindling stock levels and lifestyle choices such as older people downsizing.
"Hope Island (units) are a little bit unknown to a lot of people and all of a sudden people are finding out about it because we are short of stock in Surfers Paradise," Mr St Ange said. "The lifestyle is good, crime is next to nothing and we have all the facilities from doctors to supermarkets."
Mr St Ange said another factor influencing the market was the reduction in mortgage sales.
He said his office had sold more than 30 units in the past year and he expected the momentum from the last two years to be maintained throughout 2013.
"I see growth in the future and we've seen the big change ourselves in the last three months," he said.
"Every month we see more activity, and get more phone calls and inquiries."
McGrath Estate Agents Broadbeach sales manager Thomas McGlynn said interest in the beachside suburb had been fuelled by mortgagee sales in buildings such as The Oracle, and the surrounding publicity in national newspapers.
"People were coming up and hearing stories of buying units that were 50 per cent down on pre-GFC prices," he said.
Mr McGlynn said the Gold Coast offered the best buying opportunities in Australia.
"That has brought people back, a mixture of investors and people buying for themselves," he said.
"What you can buy a unit for ... you can't buy a house close to town for that much."
But Mr McGlynn said sellers still had a lot of ground to make up in terms of prices.
"You're still well below what Broadbeach was selling for pre-GFC," he said.
He said the Coast had entered a recovery phase but prices wouldn't be rising for most suburbs for the next two years.
REIQ Gold Coast zone chair John Newlands said more buyers were looking at units compared to the previous year.
"They are very price sensitive and wanting to get value for money," Mr Newlands said. "Body corporate fees are a concern for them."
Mr Newlands said excessive fees were a restraint on unit sales and said in some cases they could be a "second mortgage".
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