It hasn’t taken just the Covid-19 pandemic to drive investors to the Coast – it’s been an ongoing trend for buyers to seek out opportunities to move their money into the burgeoning regional market.
Since before last year Coast Property Buyers director Simon Thomas says the word has been out about the Coast’s infrastructure changes, population
growth and investment opportunities.
During the early months of the pandemic, property investment activity temporarily came to a standstill. “I had a number of interstate investors that had properties under contract here and they all withdrew,” Mr Thomas says.
But times have changed. An Australian Bureau of Statistics July report states, “new housing loan commitments have risen 4.9 per cent in May 2021 (seasonally adjusted) to a new high of $32.6 billion, driven by investor housing loan commitments”.
“Covid has been one of the biggest re-aligners of people’s lives, particularly interstaters and expats that want to eventually come back to the Coast,” Mr Thomas says. “We are seeing a massive influx of interstate people. These people are buying properties now that they are eventually going to move into.”
Both local and interstate investors see the Coast property market, particularly houses, as a viable investment option when seeking yield and capital growth.
“I have bought investment properties for clients in the last six to 12 months for people, particularly this year, who are in their seventies and all have said to me ‘we won’t go overseas again’,” Mr Thomas says. They’re looking to spend that travel money or make their savings work for them.
Mr Thomas’s hot tip for investors is to look outside of the crowded coastal market and into communities close to major transport corridors. Glass House, Bli Bli, Burnside, Beerwah, Palmwoods and Nambour – anything on a train line.
He says young couples who can’t afford to buy in Brisbane before they start a family are instead looking to the Coast to rent, particularly in communities where they can hop on a train and go to work.
Mr Thomas believes that while the city markets may flatten, the Coast market is in a strong medium- to long-term position to achieve further growth.
With Sydney and Melbourne back in lockdown, he expects a spike in investor enquiries. It might not be immediate, but he expects it will happen very soon.