Gold Coast housing market entry pricing for bulk of homes in million dollar bracket - Colliers

Gold Coast property market prices have surged a phenomenal amount in the past four years - with a benchmark for entry getting higher all the time. LATEST NUMBERS

Gold Coast house prices have increased more than 75 per cent in four years, with new data revealing it costs more than $1m to get into much of the city’s property market.

Research by real estate firm Colliers shows the price of property has skyrocketed since Covid, sparking fears the city will become unaffordable to middle and lower-class residents.

The figures for the June-September quarter reveal:

* The average price of units has reached a new high of $1.77m, up from $1.4m during the same period a year earlier;

* House prices increased 76 per cent since 2020, and around 12 per cent in the previous year;

* Nearly 60 per cent of all houses sold in the city in 2024 were above $1m, with sales of $2m or above now 13 per cent of the market.

Colliers Gold Coast director in charge Steven King said demand remained high for the city’s market despite increasing costs.

“Apart from the record median price for new apartments, the key findings in our latest report reveals the dramatic price growth of residential property on the Gold Coast since the pandemic,” he said.

“Just a few short years ago, the dominant price bracket for house sales on the Gold Coast was between $400,000 and $700,000 whereas now it is $1m to $2m.

“Price growth has effectively been supercharged on the Gold Coast although we are now seeing affordability, particularly for homes, beginning to temper that growth.

“While the latest median price for new apartments of $1.77 million has been driven by sustained demand and limited supply at the top end, it actually reflects what is happening across the broader property market on the Gold Coast.”

Colliers Gold Coast director Steven King: “Just a few short years ago, the dominant price bracket for house sales on the Gold Coast was between $400,000 and $700,000 whereas now it is $1m to $2m.”

A September report, by property consultancy firm Urbis, warns the city faces the “risk of a dramatic slowdown”, with thousands of units appearing increasingly unlikely to be delivered in coming years despite record population growth and record-breaking sales.

It noted the number of projects launched in the first three months of 2024 was the lowest since the beginning of Covid.

Mr King said the market had changed in recent years.

“Certainly, prices at the very top have pushed new highs and clearly set this sector apart from the broader market, but it’s also a bellwether of where the Gold Coast market in general is heading as affordability issues hamper some sectors,” he said.

“For the moment, we are not seeing a lot of push-back from buyers at the premium end of the market but, if this sector of the market slows, we could expect this to eventually impact the broader market.”

Colliers director David Higgins in front of the new visionary master planned project opposite Harbourtown at Biggera Waters: “Rising costs are playing a part in overall price growth on the Gold Coast, but so is a shortfall in supply.” Picture Glenn Hampson

The report revealed 331 units were sold in the quarter, with around 40 per cent, with around half in Southport and Broadbeach.

Colliers residential director David Higgins said a shortage of property and lagging construction was driving prices up, while demand for property remained high.

“Rising costs are playing a part in overall price growth on the Gold Coast, but so is a shortfall in supply with the latest dwelling approvals showing the Gold Coast is failing to deliver enough homes to meet the targeted population growth of the next two decades,” he said.

“The values for these transactions have remained relatively stable while developers of premium boutique projects are passing on higher construction costs to buyers.”