I just returned from a 3 day investigation of the Gold Coast property market and I left feeling like a character in "The Big Short."
The degree of frenzy is hard to believe. One property sold for 4.5 million when the asking price was 3.5 million. We attended some open houses and there were crowds at each one. The many agents we spoke to were like sharks circling a whale carcass and it is obvious that there is a huge demand driven price increase. The more expensive properties are selling like hot cakes and I think much of it is driven by interstate money being transferred from one real estate market to another. The southerners are selling for big bucks and transferring their money into what is/was a less expensive market.
At the moment I would not buy into that market because it is in a bubble. A little pin prick like a a small rise in interest rates will have some big consequences.
I know the Sydney market is still out of control.
What's it like where you live?
