All You Need To Know About How Gold Coast Property Is Moving
Clear Skies For Now But Possible Rain Showers Forecast
At a national level, property prices are continuing to rise. For capital cities they are 7.2% higher than 12 months ago and in regional areas such as the Gold Coast, prices are up 5.3% (these figures are provided by PropTrack). Interestingly, Brisbane now has the second highest median prices in the country after Sydney – usually it’s Melbourne that takes second place.
Logic dictates that with relatively high interest rates right now, the possibility of future rate increases and the rising number of properties being listed for sale, prices should by now have flattened out or even dropped. But that’s not happening. The fact prices are still increasing is due to one principal factor - strong buyer demand continuing to outstrip supply.
So the good news at the moment for Gold Coast property owners is that, despite a slight increase in the number of sales listings during the past few months, buyer demand still remains strong enough to absorb this additional supply. That said, we expect a significant increase in the number of properties being listed during the remainder of 2024 for the following reasons:
1. Owners who have been sitting on the fence for some time and considering whether or not to sell are starting to list their properties for sale because they now understand that this is a good stable market with very strong buyer demand; and
2. The RBA is keeping interest rates elevated for longer than had been expected and, at its latest meeting in June 2024, left the door open for future rate rises. This, together with the cost-of-living crisis, is leading to increased mortgage stress. As more owners face these financial pressures, many are going to be forced to sell in the coming months.
If the Gold Coast reaches the point where property supply meets or outstrips buyer demand, that is likely to cause a change in current market conditions. That's to say, we'll see more moderate price growth or even price drops.
Impact Of The Undersupply Of New Gold Coast Developments
The Gold Coast for the best part of 40 years has had a reputation for property “booms and busts”. There have been various reasons for these cycles and one is developers oversupplying the market (i.e. they build too many dwellings) which leads to significant price corrections. But despite all the cranes seen around our skyline these past few years, the Gold Coast currently has a serious shortage of new properties entering the market. The basic reason for this is that developers have been seriously impacted by significant increases in the cost of materials and a shortage of trades people which is preventing them building cost effectively.
This significant shortage of new dwellings combined with the Gold Coast’s ongoing strong population growth has contributed to the current upward pressures on prices and rents. We’re unlikely to see an increase in construction until developers are able to build and achieve their required profit levels.
Median Prices, Rentals And Days On Market
The Gold Coast median house price is now sitting at $1,050,000 with the median unit price being $675,000. These figures are not far behind those for Brisbane.
Despite elevated interest rates, investors are once again entering the market given expected capital gains in the years ahead and the strength of rental market conditions. In the various postcodes covering the Gold Coast, rental vacancy rates range from an incredibly low 0.4% to a still very low 1.4%. Typical rental yields for units are around 5.5% and for houses around 3%.
And when it comes time to sell, “days on market” for units is typically around 27 days compared to 62 days for houses. Although for recent sales conducted by Turner Mayes Real Estate, we have achieved sales in less days than the averages stated here.
Conclusion
If you would like to discuss how we can help you with the sale of your property, or you’d just like to have a confidential discussion about market conditions, please do not hesitate to get in touch. Turner Mayes Real Estate is a boutique agency with many years of selling Gold Coast properties. Our priority is our clients and achieving the best sale outcomes for them.