Gold Coast house prices: What to expect in 2022
The Gold Coast’s property market will outpace 2020 and 2021, real estate experts have tipped. It comes as a range of giant new towers hit the market.
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THE Gold Coast’s property market will outpace 2020 and 2021, real estate experts have tipped.
A range of new towers have hit the market over the Christmas and New Year period as developers jockey to take advantage of the booming sales.
Colliers residential director David Higgins said the new projects, coupled with the strong sales would see the Gold Coast market continue to rise rather than tail off.
“The past 18 months have been nothing short of incredible on the Gold Coast, but what’s even more promising is that our data suggests this boom still has a fair kick to it,” he said.
“We expect the city’s population to continue its rapid ascent once the borders are opened and with that will come an even stronger demand than what we’ve already witnessed.
“Fortunately, the developers on the coast have become remarkably adept at delivering a large volume of high-quality projects catered to the markets needs, and we expect to see this climb into the new year ahead.”
Among those which have hit the market in recent weeks are SPG’s Paradiso Place in Surfers Paradise and Iris Capital’s Iris Capital’s $800m Victoria & Albert (V & A) in Broadbeach
Early sales have been strong for both projects, which are yet to get council approval.
If ticked off, construction of both is anticipated to begin in the second half of 2022.
It comes after the Bulletin revealed on Saturday that the Gold Coast is expected to see double-digit house price rises in 2022.
Associate Professor Sacha Reid from Griffith Business School said a combination of factors meant prices would continue rising strongly despite eye-watering jumps in the 12 months to September 2021. She cited low interest rates and a lack of supply in the market.
‘Two more waves’: What will make house prices soar in 2022
A LEADING property expert says the Gold Coast can again expect to see double-digit house price rises in 2022.
Associate Professor Sacha Reid from Griffith Business School said a combination of factors meant prices would continue rising strongly despite eye-watering jumps in the 12 months to September 2021.
“It won’t be to the same extent, it won’t be in the 25 to 28 per cent which it has been,” Prof Reid said. “But it will be double digits.
“At the moment there’s not much supply in the Gold Coast market.
“It’s the perfect storm because interest rates are quite low. The price to borrow money to purchase property is quite cheap.”
Prof Reid said she expected the Gold Coast’s real estate boom would see two more waves as borders opened up.
“Demand will continue at least for the next six to eight months,” Prof Reid said.
“One of the things we are going to see as borders open is the people who were too cautious to buy without seeing the property from down south, they’re going to be driving the next wave of the property market on the Gold Coast.
“And then there’s going to be a second wave after that which is when international borders open.
“Australia has been perceived as quite a safe destination in its response to the pandemic, so there is a pent-up demand from international buyers looking to either park their cash elsewhere, so getting it out of places like China where there is some economic uncertainty, or they want to move here.”
Professor Reid’s predictions come on the back of a bumper year for Gold Coast property, with average house prices rising by more than 30 per cent in some suburbs.
CoreLogic data shows in the 12 months to September 30, house prices rose 39 per cent in Burleigh Waters, 36 per cent in Palm Beach and 35 per cent in Currumbin Waters.
Despite this, Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella agreed demand was likely to remain strong in 2022, pushing prices even higher.
“Low levels of stock, record low interest rates, high levels of consumer confidence and household savings, more flexible remote workplace arrangements than ever, and the fear of missing out, are all additional factors spurring on the rapid property price growth and are fundamental ingredients for a strong market as we head towards 2022,” Ms Mercorella said.
“While predicting what’s next is simply crystal ball gazing, the market is still going strong with 12-month growth averages indicating markets are rising right across the board.
“With interstate borders reopening and an international border opening to come, chances are we could see a flurry of activity and an uptick in demand well into the new year.”
Professor Reid said the continued high demand for property on the Gold Coast would cause some significant challenges, particularly in the rental sector, where prices have also risen sharply.
“There is a looming crisis in that space,” Prof Reid said.
“As we bring back international students, that international labour force that we desperately need, particularly on the Gold Coast for the tourism sector, but also for the education sector, where are they going to find accommodation?
“That’s going to be a big issue for the Gold Coast to deal with.”
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Originally published as Gold Coast house prices: What to expect in 2022
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