The emerging recovery of Sydney’s property market is good news for the Gold Coast as it heads into the peak selling season, according to Ray White Surfers Paradise CEO Andrew Bell.
With auction clearance rates in Sydney posting their best November results since 2016, Mr Bell said the Gold Coast is in line for its share of the gains at a time when interstate migrants continue to buoy the local market.
“Sydney is traditionally our biggest source of interstate buyers and, as more sellers cash in there, more capital usually starts flowing north of the border,” Mr Bell said.
“The Gold Coast has held up particularly well throughout the downturn experienced by Sydney and Melbourne over the past couple of years, and that’s largely due to the regional economy driving continued demand from local and interstate buyers.
“Some Sydney buyers have actually held off selling after seeing the value of their properties fall from record highs and this has actually stalled their plans to relocate to the Coast.
“Now, with conditions improving down south and as these markets become more liquid, this should translate into more of these buyers making the move north.”
According to CoreLogic, Sydney’s preliminary clearance rate was 78.1 per cent from 936 auctions last week.
Coupled with steady price gains recorded by CoreLogic’s Home Value Index over the past three months, Mr Bell said the indicators broadly point to the national market being in the early stages of a recovery.
“The value difference between Sydney and Gold Coast has hardly shifted throughout the downturn, and that has kept a steady stream of lifestyle buyers coming across the border,” Mr Bell said.
“But as more Sydney sellers start finding buyers for their homes, we’re hoping to see a heightened level of activity this holiday season.”
The property recovery augurs well for Australia’s biggest in-house auction program, The Event, which is hosted by Ray White Surfers Paradise each year in January.
“The timing couldn’t be better for the local market and we’re working towards another strong auction program in January,” Mr Bell said.