David Koch forecasts continued Gold Coast market rebound

 

By Joel Robinson

Finance commentator, and Channel 7's Sunrise breakfast host, David Koch has released his predictions for the 2016 housing market suggesting continued Gold Coast price growth.

He and his wife Libby ranked their 2015 forecasts giving themselves up to a "B" for their overall economic predictions which included a Gold Coast property market rebound.

David or 'Kochie' had been highly critical of the Gold Coast in recent years, advising property investors to avoid the "catastrophic" Queensland coast in early 2012.

He was back in mid-2013 with further criticism of Gold Coast investment.

A slower population growth and a tightening of lending criteria for investors will offset low interest rates in 2016 across the country.

But they see further growth in the Gold Coast.

They claim there will be a definite slowdown in Sydney and maybe a slight fall under 10 percent but there will be no crash.

Perth and Brisbane are expected to improve with Melbourne to slow but stay positive.

Adelaide, Hobart and Canberra are predicted to be flat, according to their recent News Ltd column.

"Much will depend on whether investment property sales dry up as a result of lower price growth and falling rental yields.

"If investors withdraw it will take demand pressure out of the market and prices will soften," the couple advised.

Their 2012 strong call still sees them attract local opprobrium. 

The Ray White Surfers Paradise boss Andrew Bell couldn't resist a slight shake of the head when he referred to the 2012 Koch call, and his current call, during his update to the auction crowd yesterday.

“Stacked up against Sydney and Melbourne, the Gold Coast is very affordable and because we’re still coming off a fairly low base there is more room for capital growth," Bell said.

He noted property investors were responding to this with about 50 per cent of our registered bidders were from interstate.

Bell referred to SQM Research managing director Louis Christopher who has forecast growth of up to 11 per cent in Gold Coast prices.

Published in Property Observer:  Sunday 24th January 2016

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