An article in last Sunday's Sunday Mail suggested that "Million Dollar properties were losing up to one third of their value at Auctions". How anyone could blame Auctions for being the cause of falling property values is really beyond me! The fact of the matter is that Multi-Million Dollar Homes on the Gold Coast have seen far greater falls than one-third selling through Private treaty. There are numerous sales in the past 18 months that reflect falls of up to 60% in the Top End of Town. Houses along Hedges Avenue, Main Beach Parade and Paradise Waters, together with units in Surfers Paradise & Broadbeach have seen huge falls in value. However, all indications are that the market has bottomed out and that confidence is again on the rise.
According to APM Research, houses and units above $900,000 are being discounted by an average of 23% on the Gold Coast. Whilst Auction clearance rates are down, this is often due to the Sellers not taking the highest bid, not the fault of the process. Much of the the stock we are selling now has been on the market for 12-24 months, which is about how long it takes most sellers to realize the state of the market and become sufficiently motivated to meet it. Many experienced agents are not even doing Auctions, because 4-5 weeks is not enough time for most sellers to face reality.
Whilst the first quarter of 2011 was disastrous for real estate in general, sales have been much stronger in the second quarter. The floods, cyclones and fall in tourism hit the South-East Queensland economy hard. But investors from interstate, overseas and Brisbane are again hunting down the good buys and purchasing them.
For all your Gold Coast Real Estate needs, call Geoff Brand on 0419 030 603.
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