“When there is a boom there is a bust.”
This is why local Ray White Real Estate Agent Anita Edgar takes exception to the word “boom” when describing the Hamilton Island property market.
With 94-97% occupancy across the four major hotels, Hamilton Island is thriving to a point not seen since the global financial crisis.
Ms Edgar, who specialises in Hamilton Island properties said she was convinced that the Island’s success would be ongoing.
“What we have seen is consistent growth, it’s a gradual increase in value and hasn’t happened all of a sudden,” she said.
She said the first sign of optimism occurred during the five month period from November 2015.
Within that time, Whitsunday apartments properties valued in the high $200,000 range experienced a $60,000 jump in price.
Today these apartments are now selling in the $400,000-500,000 range.
Beach-side lodges valued at $600,000 in late 2015 also soared to what is now selling between $800,000-900,000.
Increased tourism numbers, renovations and global factors can be partially attributed to this rise in demand.
Hamilton Island is not alone when it comes to renovation investment, with Daydream Island owners CCIG announcing a $50 million re-development project set to take place in 2018.
Ms Edgar said the money spent on making these islands world class destinations was paying off.
“The investments and the money spent in Daydream and Hamilton Island is constantly being improved and upgraded and that will continue to grow the numbers,” she said.
Ms Edgar said a large number of investors were people from areas like Sydney and Melbourne who saw brighter prospects in the Whitsunday region.
“Investors in capital cities are being pushed out because they don’t see value in capital growth, while there is lots of scope for capital growth on Hamilton Island” she said.
“Not only are people purchasing a property for investment because the returns are really good, but they also get to own a property where they can stay and have a holiday with their family which is a big difference for someone looking for an investment in the city.”
Ray White principal Mark Beale said with prices approaching but not yet at pre-GFC levels, there was still more growth to come.
Source: Whitsunday Times.
Nerida Conisbee Ray White Group Chief Economist When it comes to Australia’s most expensive locations, the old money suburbs aren’t budging. Bellevue Hill, Point Piper and Rose Bay continue to top the list of most expensive suburbs for luxury homes in Australia. The top 10 per cent of these markets … Read more
Inflation is now within the Reserve Bank of Australia’s target range, coming in at 2.8 per cent for the September quarter and 2.1 per cent for October. Despite this, the RBA remained on hold today. The hold is disappointing but reflects the relative strength of our economy, particularly compared to … Read more