Gold Cost Property Market Regaining Its Shine
The Gold Coast property market has been in doldrums for the last 8 years since the GFC. Construction ceased and properties had their values dropped by as much as 40% in some instances. During 2006-7, we took a cautious stand against the market and advised many of our clients to stay out. We deemed then it was a market driven by tourism with little to offer in terms of long term jobs in sustainable industries. That sets it up to suffer the most during an economic downturn.
The collapse of the Gold Coast market saw many developers such as the Raptis Group (developer of Hilton Surfers Paradise) went into bankruptcy and major luxury projects with incredible ocean views such as Soul, Oracle etc all fell to administration.
Well, we think that the worst is now over.
A couple of weeks back we were privileged to be invited to a breakfast session with Bill Evens - Chief Economist of Westpac Australia. This is his usual last leg of his annual round the world trip where meets up with with key economists and financial leaders from US, Europe, China etc.
This is the 6th session with him since 2009 and while in the past there were always variations as we compare notes about his outlook on the various economies, this time round I am glad to report that we have more to agree on than otherwise.
Although the session unsurprisingly Australia flavored, the most interesting takeaway from the session for us was how h expects the US recovery to be short lived.