Surging home values on the Gold Coast made the city a top performer in QLD in 2017, and one of the best performers in the country.
Figures recently released by CoreLogic reveal that House prices on the Gold Coast rose 7.6% in 2017, to a median sale price of $634,423. Median unit prices rose 5.8% to $411,229 over the same period.
This compares well with Brisbane, where house prices rose only 2.8% in 2017, and even with the Sydney market where house prices rose 7.7%.
With prices surging on the Gold Coast, there was evidence in late 2017 that the property market here was taking a breather. Buyers became more hesitant when faced with considerably higher prices, and there was some concern evident as to what would happen to property prices after the Commonwealth Games.
However that hesitancy seems to have evaporated, and 2018 has started with strong activity occurring across both the house and unit markets. There are several factors underpinning the market here:
Continued strong performances in both the tourism and education sectors. These are two of the top 5 export earners for Australia, and the GC is benefitting from the growth driven in part by our lower dollar.
A significant list of construction projects planned for the Coast, including residential accommodation, transport and theme parks. While some of these may not eventuate, the sheer volume of projects suggests that building activity (and the employment it creates) will continue to be a significant contributor to the local economy.
The rental property vacancy rate is at a very low 1.1%. Stories abound of 20-30 hopefuls attending rental inspections. This excess of demand over supply is causing rents to increase and will continue to improve the attractiveness of the GC for property investors.
Many previously-rented properties are being snapped up by local and interstate owner occupiers, putting further pressure on rental availability.
Interest rates remain low. While the Reserve Bank has indicated that the next rate movement is likely to be up, there have been recent reductions in some lending rates as banks compete for business.
Barring significant external factors, the Gold Coast property market looks set to continue to perform well in 2018.