If you are interested in the state of the Gold Coast real estate sector, either as an existing homeowner, investor, developer or interested observer than the latest property news regarding the state-of-play of the city’s property sector should always be of interest to you. Staying across the Gold Coast’s real estate news can provide you with information about key variables such as property price trends, housing affordability and apartment availability– news that may actively impact your decision on when and where to invest.
The Gold Coast is noted for its natural beauty and idyllic lifestyle. In recent years, this coastal sanctuary has witnessed an increased resident population due to people flocking to it to seek a better quality of life – a trend particularly heightened post-COVID and facilitated by more flexible work arrangements. Among the groups of people wishing to explore the lifestyle benefits of this highly sought-after destination include young professionals and families, tourists, and international students, searching for good jobs, quality education, and diverse recreational activities.
Interstate migration, particularly from cities like Sydney and Melbourne accounts for a substantial portion of this population increase. Not only has the human influx enriched the cultural fabric of the region but it has also enhanced the local economy by strengthening the labour force. The impact has also been felt in the real estate market, mainly through increased housing demand and competitiveness.
This post seeks to offer a Gold Coast property market update encompassing areas like the Gold Coast apartment price trends, Gold Coast property predictions, and more.
Gold Coast real estate trends – Overview
Property market news relating to the Gold Coast is positive because the property market here is booming across all sectors, thanks largely to a slowdown in the commencement of new projects, primarily caused by surging construction costs, which are expected to influence large-scale projects. Because of this situation, investment across various asset classes has become attractive due to limited supply when compared to population growth, strong tenancy demand, and rising rental rates as a result of these factors.
Gold Coast housing market predictions
Gold Coast has an impressive portfolio of projects, including substantial infrastructural investments, and the expected gains from hosting some 2032 Olympics events have positioned this region for continued growth. The expansion of road transport networks, and the construction of a high-frequency light rail system that connects the rapidly growing northern suburbs to Coolangatta in the south, will not only boost public transit options but also ensure that the Gold Coast becomes an even more attractive investment destination.
Strong Demand and Lack of Stock Have Underpinned Residential Development Projects
In recent years, there has been a trend of consistent growth in approvals for residential development on the Gold Coast. This trend has been driven by population growth and a favourable low-interest rate environment. Between 2022 and 2023 for example, there were 5,870 approvals, a 4% increase from 2021- 2022. However, the challenges arising from high debt and construction costs may affect future approvals and hence push individuals to reconsider their project plans.
Already, Queensland is faced with a growing backlog of residential projects, with some approved projects not likely to progress to the construction stage. Larger scale projects have particularly been more impacted by the current conditions. Notably, this financial year has seen unit/townhouse approvals far dominate house approvals with an 81% approval rate.
Gold Coast property predictions
In larger residential developments, Lewis Land Group’s 16-hectare Harbour Shores master planned precinct in Biggera Waters has been approved by the City of Gold Coast. The precinct is expected to house over 2,000 homes and nearly 5,000 people over the next 10 years. The company aims to release the first apartments and waterfront villas by the end of 2023. Places such as Biggera Waters, Hope Island, and the wider Northshore catchment areas offer opportunities for medium to long-term supply of residential development.
Preference For New Constructions Over Established Buildings
One notable dimension of Gold Coast real estate trends is that newly introduced developments have performed strongly in the market, thanks to their perceived superiority over the older generation buildings when it comes to features, design excellence, and increased residential amenities. Not only have recently launched apartment complexes attracted a steady level of interest from both local and interstate buyers, but they’ve also recorded impressive sales figures. Additionally, end-user purchasers are exhibiting a strong preference for investing in premium projects situated in prime locations.
However, there’s another dimension to Gold Coast real estate trends: Some potential buyers are being very cautious about new developments. Their apprehensions are due to uncertainties about the existence of a robust building contract for the project as well as concerns about the track record and quality of the sponsor/developer team. This feeling has become the primary concern impacting the advancement of projects.
Gold Coast property price trends
Residential Market Fundamentals Remain Strong: Property Prices Are Showing Resilience
Resilience has been a characteristic of Gold Coast property price trends. After the 53% increase experienced from the onset of the pandemic to the Q2 2022 peak, house prices on the Gold Coast started to fall as the Reserve Bank introduced its first interest rate rise in 10 years. Though the second and third quarters of 2022 saw a 3% decline in property values, there has since been a gradual rebound except for a small change in the second quarter of 2023 when the median value dropped by 2% from the first quarter to $967,500 in June 2023.
Unit prices have been resilient in maintaining a continuous rise after a dip in Q3 2022. Unit prices have grown by 42% since the pandemic started and by 3% over the past quarter to $675,000 in June 2023. Holistically, market fundamentals remain strong, and the Gold Coast property price trends indicate that property prices are now beyond their lowest levels in the market cycle, with the recent decline in house values likely to be momentary.
Rising popularity among retirees
A substantial number of wealthy individuals from the southern regions continue to choose the Gold Coast as their preferred location for downsizing following retirement. That is good news because they arrive with the proceeds from their higher-priced property sales. For now, the pressure from the interest rate increase is not significant enough to trigger widespread mortgage downsizing or investment liquidation.
Gold Coast property market news
Project management companies solidify their foothold in Gold Coast Real estate
Leading Gold Coast project marketing firm Pezet Matheson, continues to excel in the property market with their exclusive appointment to 12 large and mid-scale projects. Since the company was rebranded late last year, it has achieved remarkable success in setting new price benchmarks and delivering excellent projects that command premium prices. Spanning Main Beach to Coolangatta, these projects are made up of 571 units with a combined value of more than $1.16 billion.
The Southern Gold Coast takes centre stage among the projects currently under construction with the $90 million Flow Residences, the $140 million Esprit, the $48 million Awaken towers, and the recently lodged plans for a new $140 million tower overlooking Duranbah Beach. Coolangatta also shines with the exquisite Rockpool and Rhythm Kirra Hill projects that offer unparalleled luxury in this vibrant coastal suburb.
When it comes to Gold Coast property market predictions, Managing Director, Jayde Pezet is of the opinion that the Gold Coast market remains robust albeit the key challenge is the extreme lack of supply.
“The growth in prices over the past 24 months has been staggering, further reinforcing value and desirability by the buyer, but it’s the scarcity of available stock that has solidified the backing and sustainability of these price increases, especially at the southern end of the Gold Coast,” says Pezet on Ocean Road Magazine.
Despite Rising From Its Lowest Level, The Vacancy Rate Still Remains Historically Low
Like in other sectors, research data is an essential component of Gold Coast real estate. Data from SQM Research indicates that 2,204 properties were listed for sale in July 2023, compared to 2,682 in July 2022. Also, properties listed for sale for an extended period of over 30 days declined from 65% in July 2022 to 61% in July 2023. However, there is persistent optimism with respect to the long-term prospects of holding property in Gold Coast, largely as a result of the city’s continuing growth, infrastructure initiatives, and upcoming events.
Though it remains relatively low, the residential vacancy rate in the city has been increasing gradually in recent months. According to SQM Research, the tightest market areas on the Gold Coast as of June 2023 are:
- Gold Coast West (0.9% vacancy rate)
- Hinterland (1.1% vacancy rate)
- Gold Coast Main (1.6% vacancy rate)
- Gold Coast South (1.8% vacancy rate)
- Gold Coast North (2% vacancy rate)
There was an 8% increase in rents for four-bedroom homes in the year to June 2023, while unit rents rose by around 15% within the same period, according to the RTA.
Gold Coast Office Market: Higher Net Absorption, Yet Increased Supply Led To Rising Vacancy Rates
Net absorption in the six months to January 2023 was 5,598 sqm. However, this increased to 6,534 sqm in the first half of 2023, resulting in a total year net absorption of 12,132 sqm.
Despite this, the office vacancy rate in the Gold Coast still increased slightly to 6.3% from 6% in January 2023, thanks to new supply additions. Total vacancy stood at 29,157 sqm out of 462,373 sqm of total stock. Gold Coast real estate predictions suggest that limited supply is anticipated in the next few years and hence vacancy is expected to decline as new space is absorbed.
Even with a modest increase from January 2023, A-grade buildings still exhibit the lowest vacancy of any grade (4.6%). Notably, A-grade buildings also have the highest net absorption level, primarily driven by the uptake of newly developed buildings. At -2.1%, D-grade stock had the most significant tightening in vacancy. This outcome was likely skewed by the smaller overall stock size. A small rise in vacancy was witnessed in B and C-grade stock.
The Robina-Varsity Lakes region which recorded the most significant supply addition of 6,820 sqm also had the highest level of net absorption of 5,734 sqm, representing 88% of the total net absorption. Despite a small addition of just 464 sqm, Southport recorded a noteworthy net absorption level of 1,793 sqm, followed by Bundall which had a positive net absorption of 784 sqm. However, both Surfers Paradise and Broadbeach experienced negative net absorption mainly because of tenant relocations that led to the addition of backfill space. With just a 4.8% vacancy in July 2023, Bundall remains the tightest market.
In the past three years, strong demand has brought about the emergence of non-core precincts, resulting in the delivery of around 11,700 sqm of new office space in the last 12 months alone, out of which 75% has already been occupied.
Gold Coast experiences a construction boom
There’s been a significant growth of key industries on the Gold Coast in recent times. For instance, the construction sector added 880 new GST-registered businesses in 2022, professional services increased by 703 businesses, and healthcare added 557 businesses. All these have led to job growth and increased need for office space, by both SMEs and others. They are also a key influence on Gold Coast housing market predictions. This year, half of all enquiries have been for expansion, while a quarter of the enquiries have been for relocation. Vicinity Robina (2,200 sqm) is the only new development expected for this year.
In a changing economic landscape, the construction sector continues to grapple with challenges brought about by high construction costs, labour shortages, and higher borrowing costs. Consequently, no new projects are anticipated for 2024 and 2025. The next addition, the 5,500 sqm V & A Broadbeach is expected in 2026. For now, many other projects remain on hold.
Partner up with Pezet Matheson
The Gold Coast property market is always experiencing new patterns and trends. As a key player in the market, Pezet Matheson will not only offer you optimal property marketing solutions but can also help bring you the very latest property market update that includes real estate price trends, Gold Coast property market predictions, and more.
Reach out to us to have Pezet Matheson as your partner for all your Gold Coast property marketing and sales campaign needs.
