Revealed: The Coast suburbs where house prices have fallen

We reveal where buyers have the best chance to crack the market. INTERACTIVE: SEARCH SUBURBS WHERE PRICES FELL

Now could be the time to hone in on a bargain as house prices fall in some popular pockets of the Gold Coast

Property prices fell by up to 15 per cent in some suburbs over the last three months, revealing opportunities for buyers even as the broader Gold Coast market defies a more severe national downturn.

PropTrack’s Market Trends snapshot showed Gold Coast house prices grew five per cent overall in the three months to May.

But sales in popular Mermaid Waters were down 14 per cent, coming off the back of last year’s staggering growth of 38 per cent, to a median price of $1.55m. The more affordable Hinterland market of Tamborine Mountain also took a big hit as sales fell 14.5 per cent to a median of $860,000.

Prices also plunged in Tugun (down 12 per cent) and Burleigh Waters (down eight per cent), while Oxenford, Surfers Paradise, and Hope Island each fell between six and seven per cent.

For units, prices fell 15 per cent in Mudgeeraba to $594,250, and 7 per cent in both Ashmore and Palm Beach.

Buyers were spooked by rising interest rates over the last quarter, coupled with the disruption of Covid-19 outbreaks, severe weather, the Federal election, and a string of holiday weekends.

House prices in Tamborine Mountain were down 14.5 per cent

The Reserve Bank of Australia raised the official cash rate again this week, by a higher-than-expected 50 basis points to 0.85 per cent.

But Ray White Surfers Paradise chairman Andrew Bell said now was an ideal time for buyers to make their move.

“For a buyer, this a perfect environment, and much better than the boom time, as they won’t have the same frustration of missing out because they are buying in a softer market,” Mr Bell said.

“We’ve just been through a period of time with very low interest rates that contributed to huge buying demand, and of course prices continued to rise.

“Now we have slightly higher interest rates and that means there will be less buyers in the marketplace as the ability to borrow is softened somewhat,” he said.

Mermaid Waters has come off the boil following huge growth last year

McGrath agent Richard Snowden said the number of properties on the market was about 30 per cent higher than last year, giving buyers more choice and power to negotiate.

The balance of supply and demand had the greatest impact on price movement, Mr Snowden said.

“With inquiries last year, if you had ten buyers they would have one property to look at,” Mr Snowden said.

“We’ve still got the same amount of buyers now, but those buyers have more to choose from so they are taking a little bit longer, they’re not bidding at auction.

“Last year, a north-facing, waterfront property in Mermaid Waters would be snapped up straight away. Now, I might have half a dozen listed,” he said.

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With buyers hesitant to build in the current construction climate, Mr Snowden tipped an uptick in demand for newly renovated homes once the current post-election lull had passed.

It’s a different story elsewhere in the city though, with house prices up to more than 10 per cent in ten suburbs, pushing up the city’s overall performance.

The strongest house markets were Paradise Point (up 38 per cent) Worongary (34 per cent) and Miami (30 per cent).

But ritzy Paradise Point made big gains

Buyers agent Matt Srama said the northern growth areas would also continue to perform strongly, as first-home buyers and young families priced out of other suburbs pushed up demand.

“It’s the ripple effect, off the back of the southern and central areas becoming so unaffordable,” Mr Srama said.

Buyers who compared similar property types, and sales within one street or neighbourhood, would find the best value, he said.

House prices were still going up in Miami

“People need to realise that the last 12 to 18 months has been an incredible period of growth, so compared to that it’s almost certain prices are going to drop back in some areas.

“I’d be careful of high density stock in some suburbs where there is a lot of supply, but second to that, I’d be looking at the market at a micro level, because even if prices have increased or decreased it doesn’t mean that every property in that market will increase or go down,” he said.