Bright prospects for Gold Coast thanks to low interest rates

PUBLISHED : Wednesday, 26 November, 1997, 12:00am
UPDATED : Wednesday, 26 November, 1997, 12:00am

Low interest rates and an improved investment atmosphere are expected to lift property prices in Brisbane and Queensland's Gold Coast by 9 per cent in the coming year, according to L. J. Hooker International Hong Kong.

Director Mickey Cheng Kwok-yu said he expected prices would have a stable growth in view of steady demand.

He said while Hong Kong buying interest in overseas properties had been affected by the recent stock market and financial turmoil, he believed the impact would be 'only short- lived'.

Many Hong Kong people who had investment experience in the region would re-enter the market because of the attractive investment return, Mr Cheng said.

Properties on the Gold Coast, which accounted for 33 per cent of Queensland's tourism, would become a good choice, while property prices in Brisbane were cheaper than in Sydney.

The most popular residential properties among Hong Kong buyers at A$200,000 to A$500,000 (about HK$1 million to $2.68 million) would become more expensive, he said.

Investment return yields for properties on the Gold Coast and in Brisbane were 7 per cent compared with 6 per cent in Sydney, and the low interest rate of 6 per cent also provided good investment opportunities for potential home buyers.

Recorded residential property transactions in Brisbane rose 5 per cent to 644 or A$149 million in the third quarter of this year against the previous quarter, PRD Realty said.