The Parc Complex Report - Shane Seghers

THE PARC Complex Report

Shane Seghers

Why sell now?

A message from Shane Seghers The Australian market is high functioning with high turnover, with not too much of a gap between buyers and sellers. We know we’re in a new cycle, however, in this Newsletter we will cover a number of reasons why prices aren’t likely to drop dramatically here on the Southern Gold Coast.

As a team, we take nothing for granted and know we can achieve competition for property in any market. We’ve been in business for 20+ years and right now we continue to defy the headlines. The fact is people buy and sell property every day.

They upsize, downsize, move away and move home as everyone’s personal circumstances are different. Selling is a personal decision.

Some pundits are now predicting up to 20 per cent price falls in some markets off the back of the supersized, inflation-busting rate rise. These were also the same pundits who were predicting 30 per cent falls at the start of the pandemic. They were so wrong. We’ve always said that we don’t have a crystal ball to predict the future and we’ve never been one to speculate. We work in the ‘now’.

What we know right now is that our all critical appraisal numbers are up 62 per cent on two years ago and 22 per cent higher than last year. This gives us confidence that the spring pipeline is looking strong. Stock is rising.

Our open homes numbers remain sound (10 per cent higher foot traffic than one year ago but still 22 per cent lower than two years ago during the height of the pandemic). Our volume of sales are also up on two years ago too.

Scheduled auctions across our offices remain higher too over the last two years, and since polling day our clearances are climbing back to the mid-60 per cent ranges - which is actually slightly above our long term average. Our team's average days on market right now is 22, which is still over a fortnight shorter than the area average.

Our job has always been the same. To create competition for our sellers - and we can do that in any market. The process remains the same to market our properties as far and widely as possible for our sellers. We’ve never lost sight of that.

Regards,

Shane Seghers TUGUN PROPERTY SPECIALIST

0420 301 605 shane.seghers@raywhite.com SCAN FOR A FREE MARKET UPDATE PERSONALISED TO YOUR PROPERTY

The Parc

Recent Snapshot

ADDRESS

SALE PRICE

SALE DATE

170/2 Inland Drive, Tugun

$790,000

11/06/2022

173/2 Inland Drive, Tugun

$820,000

24/05/2022

95/2 Inland Drive, Tugun

$850,000

16/04/2022

39/2 Inland Drive, Tugun

$770,000

12/04/2022

3/2 Inland Drive, Tugun

$875,000

03/03/2022

10/2 Inland Drive, Tugun

$890,000

31/01/2022

98/2 Inland Drive, Tugun

$810,000

15/11/2021

17/2 Inland Drive, Tugun

$805,000

05/11/2021

122/2 Inland Drive, Tugun

$708,000

16/08/2021

52/2 Inland Drive, Tugun

$600,000

04/08/2021

138/2 Inland Drive, Tugun

$660,000

29/07/2021

80/2 Inland Drive, Tugun

$696,000

07/07/2021

167/2 Inland Drive, Tugun

$630,000

24/06/2021

61/2 Inland Drive, Tugun

$639,500

21/06/2021

76/2 Inland Drive, Tugun

$695,000

08/06/2021

$790,000

$890,000

most recent sale price

complex record sale price

$11,238,500 worth of property sold in the 21/22 FY

72% of all enquiries came from out of area postcodes

In preparing this information we have used our best endeavours to ensure the information contained herein is true and accurate, but we accept no responsibility and disclaim all liability in respect to any errors, omissions, inaccuracies, or misstatements that may occur.

Source Pricefinder.com

Our Market at a glance: 4224 TUGUN HOUSES

SOLD LAST QUARTER

APARTMENTS

HIGHEST $9,100,000

HIGHEST $1,450,000

MEDIAN $1,200,000

MEDIAN $885,000

11

HOUSES

23

UNITS

AVERAGE DOM*

45

TUGUN

78

LGA GOLD COAST

GOLD COAST LGA HOUSES

APARTMENTS

MEDIAN $1,000,000

MEDIAN $620,000

AVERAGE DOM 60

AVERAGE DOM 78

In preparing this information we have used our best endeavours to ensure the information contained herein is true and accurate, but we accept no responsibility and disclaim all liability in respect to any errors, omissions, inaccuracies, or misstatements that may occur.

Source Pricefinder.com

Rental Insights A surge in international student arrivals is likely to add further pressure to already tight Gold Coast rental market. Australia-wide properties are renting faster than ever, and the number of days it took a rental property to be leased after it was listed on realestate.com.au in July hit a historic low 19 days. Nationally, median advertised rents on realestate.com.au have increased by 8% in the past 12 months alone.

0.81%

2,256

555,721

CURRENT VANCANCY RATE

RENTAL STOCK AVAILABLE

GOLD COAST POPULATION

31.09% RENTAL POPULATION

OVERSEAS "FOR RENT" SEARCH VOLUMES HAVE SURGED IN RECENT MONTHS Rent

Buy

200

150

100

50

22 Ju ly

Ap ril 22

22 Ja nu ar y

O ct ob er 21

21 Ju ly

Ap ril 21

21 Ja nu ar y

O ct ob er 20

Ju ly

20

0

In preparing this information we have used our best endeavours to ensure the information contained herein is true and accurate, but we accept no responsibility and disclaim all liability in respect to any errors, omissions, inaccuracies, or misstatements that may occur.

Source Pricefinder.com

Borrowing power vs Rate rises The cash rate has been increasing, with economists from the big four banks predicting it could grow to over 2%. The cash rate impacts the interest rate lenders offer on variable-rate home loans, which in turn impacts the total amount someone may be able to borrow.

If the cash rate continues to grow, and the lenders pass on the increase to borrowers, the total amount a borrower can access will decrease.

In the example below, an increase in interest rate by just 0.25 percentage points from 2.5% p.a. to 2.75% p.a. would decrease borrowing capacity by $21,000. A change of one percentage point from 2.5% p.a. to 3.5% p.a. would decrease borrowing capacity by $77,000.

POTENTIAL BUYER

Annual Salary: $90K

Dependents: 0

Loan term: 30 years

Average Australian expenses

INTEREST RATE P.A

For more information or to discuss your own borrowing power, reach out to Connor Summers at Loan Market for your free, no-obligation chat.

BORROWING CAPACITY

2.50%

$693,000

2.75%

$672,000

CONNOR SUMMERS

3.00%

$653,000

0416 838 673

3.25%

$634,000

connor.summers@loanmarket.com.au

What's Happening in Our Neighbourhood

Gold Coast Terminal Expansion Set to open late 2022, this three-level 30,000 sqm game-changer doubles the terminal’s current size - connecting with the existing terminal there’ll be room for 19 additional large aircraft to touch down or take off. The expansion will accommodate 6 new gates setting the stage for new and returning international and domestic flight connections. As the world keeps moving ahead and borders start to reopen, links to New Zealand, Singapore, Korea, Japan and Malaysia will be ready to go from the new-and-improved terminal.

Palm Beach Aquatic & Community Centre Redevelopment Demolition is well underway on the Palm Beach Aquatic Centre which will see the site redeveloped and transformed into an exciting community hub. Major new features will include a community centre with a multipurpose hall and flexible spaces, new pools for aquatic activities, a water play area, fitness centre, dance studio, café and creche. It is also great to know that a target has been set to recycle 95% of the former concrete structure and 60% of the building materials. The Centre is due to reopen in early 2024. For detailed information and construction activities visit - cityofgoldcoast.com.au/pbacc

Currumbin Creek Road & Bienvenue Drive Intersection The Department of Transport and Main Roads is undertaking consultation for the upgrade of the Currumbin Creek Road and Bienvenue Drive intersection at Currumbin Waters.

The $4 million project is proposing to improve capacity, efficiency and safety at the intersection. Design is expected to be finalised in September 2022, with early works (including service relocations) to commence in October 2022. Then in early 2023 construction of the intersection improvements are expected to begin.

Shane Seghers 0420 301 605 |

shane.seghers@raywhite.com

www.raywhitetugunelanora.com.au