Has the Gold Coast Managed to Defy the National Property Downturn?
An article released on Saturday by the Gold Coast Bulletin discusses how the Gold Coast property market has so far managed to defy the National property downturn.
It's interesting to note that in the report, Bonogin was highlighted as the best performing suburb on the Gold Coast over the July to September quarter whilst acreage property in Tallebudgera Valley and Tallai were also amongst the best performing suburbs.
The article which relies on data that can take up to three months to be recorded shows that over the July to September quarter, prices on the Gold Coast have fallen by 1.25%.
The number of transactions were not reported.
When reviewing our own data from each quarter this year, the numbers make for interesting reading.
Over the April to June quarter, we managed to sell 112 properties worth $114,245,833 with an average price of $1,020,052
Over the July to September quarter, we sold 91 properties with an end value of $88,606,500. The average price was $ 973,697.
Whilst the drop in prices over the six month period does not appear dramatic, it is the fall in volume of sales rather than the prices that are of note.
In most downward cycles, significant price falls start to occur three to six months after the number of sales starts to decline.
So when was the peak of the market?
Well, our own figures suggest it was in the January to March 2022 quarter.
Over the January to March quarter we sold 138 properties with an end value of $146,667,905 with an average sale price of $1,062,810.
Using our own quarterly data this year we can see that prices have so far fallen by approx 8.5% from their peak in the January to March quarter whilst the number of sales have now fallen by 34% from their peak.
With days on market clearly lengthening and further interest rate hikes to come, the reduction in number of sales each month suggest that price falls will soon be more noticeable as we move into the next phase of this cycle.
Saturday's Gold Coast Bulletin report is below and is our feature article this week.
GOLD COAST SALES DEFYING TRENDS
THE Gold Coast property market has defied the national downturn, with house prices up in three quarters of the city’s suburbs over the September quarter.
PropTrack’s Quarterly Home Price Index shows 49 suburbs recorded growth in the past three months, with house prices jumping 5 per cent or more in eight suburbs.
But the Coast lost its title as a top growth star to some of Queensland’s more affordable regions, with house prices falling in the city’s remaining 15 suburbs.
Overall, Glitter Strip home values fell 1.25 per cent, now sitting 11.69 per cent higher than 12 months ago, and a whopping 52 per cent up from before the pandemic.
Acreage locations led the gains, with Bonogin in the Hinterland up 9.47 per cent to a median $1.64m – 33 per cent higher than a year ago.
Tallebudgera Valley was next with a rise of 7.79 per cent to a median $2.16m, and huge annual growth of 35 per cent.
Median prices hit $1m-plus in 70 per cent of Gold Coast suburbs, and more than $2m in six postcodes – with Bundall a newcomer to the top price bracket.
Mermaid Beach remains the city’s most expensive place to live, despite house prices sliding 2.75 per cent over the quarter to $2.65m.
PropTrack economist Eleanor Creagh said Queensland’s affordability, population growth and tight rental market were propping up prices.
Listings had picked up heading into spring, but were well below pre-pandemic levels, underpinning demand.
“Prices have largely held up better even though buyers’ borrowing capacity has been constrained as interest rates are rising,” Ms Creagh said.
“These regions have benefited from strong population growth, and the preference shifts that have continued since the pandemic with demand for larger homes and bigger block sizes, but also the relative affordability advantage when compared to the east coast capitals of Sydney and Melbourne.”
GOLD COAST SUBURBS WITH BIGGEST HOUSE PRICE GAINS
Bonogin 9.47%
Tallebudgera Valley 7.79%
Tallebudgera 7.05%
Reedy Creek 6.7%
Currumbin 5.87%
Lower Beechmont 5.59%
Tallai 5.03%
Gaven 5.02%
Ashmore 4.73%
Mudgeeraba 4.36%
GOLD COAST SUBURBS WITH BIGGEST HOUSE PRICE FALLS
Broadbeach Waters -3.24%
Mermaid Beach -2.75%
Mermaid Waters -1.93%
Varsity Lakes -1.85%
Coolangatta -1.45%
Robina -1.18%
Burleigh Heads -0.97%
Currumbin -0.95%
Jacobs Well -0.88%
Yatala -0.63%