Has the Gold Coast market hit the bottom of the cycle? Are good times ahead?
Owners of a beachfront property on the Gold Coast rejected an offer of $14.5 million just six months ago, after having it valued at $17 million. “We can do better than that!” they thought.
But today that piece of “real estate gold” went to auction and was sold for just $9 million. A bargain, or a reality of just how far the upper end has dropped in recent months? Probably a bit of both. Yes, it’s cheap for what it is, and the new owner will probably be smiling when they property sells again 5 or 10 years from now. However, it also goes to show just how tough it is to predict prices in the luxury market.
So if we’ve hit the bottom of the real estate cycle, then presumably now is a good time to buy. Some say yes, and others say no. In this week’s issue of BRW magazine, experts from the real estate and property development industries are mixed in their views. Some are saying “Buy now!” while everyone else is in a panic, whilst others would recommend waiting for six months to see how things are going.
In my view, it is a good time to be purchasing real estate, so long as you meet a few conditions. Have a look at “Now is the time to buy” for a bit more info.
Ouch ! A loss of five and a half million in 6 months.
The problem at the top end of town is that there are no Governments parachutes such as an upmarket equivalent to the first home buyers grant. Good thing too,as by my rough estimation such a grant if it existed, would have to be something in the order of $360,000 given that you can secure $21,000 in grants and savings,on a half million dollar first home
It’s an uneasy place to have your money, when the only driver of property at that level is unmitigated human desire.
Lets face it the real worth of a beach front property is in views and some convenience. It produces nothing to warrant the pricetag and is always going to be purchased for egoist reasons not fiduciary ones.
Even allowing for the vagaries of the markets at this red carpet level of real estate, that is still one almight price drop by anyones standards and really hits home the truth about the extent of this meltdown.