Surge in Gold Coast Property Prices!

The advantages for homeowners who made the decision to sell their home over the past few months has been highlighted by an article printed in last week's Gold Coast Bulletin.

The article, with the heading "Q3 price surge:Latest home values in every suburb revealed" showed that prices on the Gold Coast have increased strongly over the past three months.

The main reason for these increases can be attributed to the incredibly low amount of properties coming to market which has failed to keep up with the amount of buyers searching for their new home or an investment property.

Whilst the volume of sales is considerably lower than what we experienced during the bull run of 2020, 2021 and the early parts of 2022, price increases are again being recorded across most markets.

In our local areas, Robina was boosted by a quarterly rise of 2.13% for houses and 3.72% for units. In Varsity Lakes the price gains were 1.58% for Houses and 4.36% for units, Mudgeeraba 2.10% for houses and 3.47% in units whilst Bonogin houses increased by 1.85%.

It's interesting to note that units had considerably higher growth over the quarter when compared to houses and there are two key reasons for this. 

Firstly, units are more affordable and with rising interest rates, affordability has become a key element in the market. The second reason is the move away from space and larger allotments that dominated people's thinking during the pandemic. This has also seen many people who had previously moved away from cities into regional areas now move back into the cities.

In suburbs such as Robina and Varsity Lakes, unit prices have now eclipsed their previous highs of mid 2022 whilst houses are yet to rebound to previous record levels.

Whilst low stock levels continue in the market, prices are predicted to rise however it should be noted that if stock levels jump as expected then price falls could well be back on the agenda.

The Gold Coast Bulletin article from last week is below and is our feature story this week.

Q3 price surge: Latest home values in every suburb revealed

The Gold Coast property market surged over the past three months, with home prices up in every suburb as buyers race to secure a slice of Sunshine State real estate by year-end.

Latest data reflects big demand for luxury new apartments — unit prices in Main Beach and Surfers Paradise were up almost 12 per cent year-on-year. A typical unit now costs $1.23m in Main Beach, bolstered by flash new projects including one where the buy-in starts at an eye-watering $4.1m.

But most recently, PropTrack’s Quarterly Home Values report showed the biggest gains from July to September were for units in the more modestly priced centrally located suburbs.

Southport took the lead with a 7 per cent price surge to $546,344.

Molendinar, Ashmore and Parkwood all recorded growth of more than 6 per cent, to $544,628, $579,101, and $614,948 respectively.

Strong migration, low supply levels and tight vacancy rates have created a sellers’ market, while the Reserve Bank of Australia (RBA) this week kept the cash rate on hold at 4.1 per cent for the fourth month in a row.

For houses, the southern Gold Coast recorded the most impressive recent gains, with Tallebudgera Valley, Palm Beach, Coolangatta and Currumbin Waters all featured in the quarterly top 10.

Up north, houses in Yatala and Jacobs Well also made the cut.

Lana Faulkner of Ray White Surfers Paradise said the RBA’s hold on rates had given first-home buyers increased confidence to make their move.

“Buyers had been nervous entering a marketplace that has increased as much as it has over the past 3 years, but I am hearing now banks are more inclined to lend, which is helping buyers have more money to get a better place, whereas they were really restricted a few months ago,” Ms Faulkner said.

“Lending capacity has increased for buyers, so that is bridging the gap between the buyer and the seller, and in turn providing sellers with a little more incentive to list their property.”

Demand was firing for homes priced under $1m in the Southport area, with a new 3-bedroom townhouse on Queen St sold for $960,000 in September.

“Southport is a sleeping giant. It’s still affordable for first-home buyers or investors and there is a lot of talk about the potential for capital growth,” Ms Faulkner said.

PropTrack economist Eleanor Creagh said declining affordability had pushed up unit prices.

“We would expect to see price growth continue,” she said.

“Brisbane and the Gold Coast have already reclaimed any losses incurred in 2022, and continue to record growth every month to hit new peaks.

“Interest rates have also likely peaked, or are close to peak, so that will also drive more confidence and demand.”

Home prices across the state’s regions hit an all-time high of $614,000 in September, up 4.89 per cent compared to the same time in 2022.

The record puts regional Queensland the strongest performing market in the country, with prices now 55.3 per cent higher than before the pandemic.

Meanwhile, national residential property listings rose 9.3 per cent in September, latest SQM Research figures show.

“The pick up in new listings is a sign of confidence from vendors that the current market is offering good selling conditions,” SQM Research managing director Louis Christopher said.