Gold Coast real estate: 2023 predictions and tips
Some of the Gold Coast’s leading real estate figures have revealed how the industry will change in 2023, in the face of rising interest rates and inflation.
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SOME of the Gold Coast’s leading real estate figures are tipping the city will escape the “boom and bust” cycle as property sales remain high.
The city’s development sector, which boomed at record levels in 2020 and 2021 on the back of surging property sales during the Covid pandemic has slowed this year.
Rising interest rates, material shortages and increasing costs have been factors.
Despite these elements, and the collapse of major buildings such as Condev and Pivotal, some of the city’s leading real estate firms are still notching up recording-breaking sales.
Harcourts Coastal boss Dane Atherton said his company had made more than $100m in sales during the first two weeks of November, sitting on part with 2021 figures.
With inquiries remaining high, he said the Gold Coast was showing signs of withstanding the tough economic times.
“The Gold Coast has put itself on the map as the place in Australia which has deified past trends and become the place which is now normal and stable in the country,” he said.
“We have not had the sharp price declines Sydney and Melbourne have had and it has a lot to do with the continued demand and this demand continues to be a strength as interesting rates cool the very heated market.
“The impact of this has been a pumping of the brakes rather than a catastrophic stop, so the future looks good because we will not see the same sharp or rapid increases but a stable market. This is greater compared with the boom and busts of previous years.”
Gold Coast homeowners have been dealt a hammer blow this year, with the Reserve Bank of Australia raising the cash rate over seven consecutive months in a bid to clamp down on inflation.
The cost of monthly repayments at this level have now increased by $1140 since May.
The number of households in the greater Gold Coast region now experiencing mortgage stress sits at 24,000.
The ongoing war in Ukraine, the pandemic and tensions with China have all been blamed for the material shortages and the dramatic uptick in costs which has seen multiple developments fold.
However, others are pushing on with Sammut Group this week breaking ground on its $200m COAST tower in Surfers Paradise and Sunland founder Soheil Abedian just weeks away from launching his new Mermaid Beach high-rise to the market.
Colliers International this week released a report tipping the Gold Coast’s property market would continued to slow before stabilising in 2023, returning from “nuts” to “normal”.
Ray White Surfers Paradise CEO Andrew Bell last week sold nine properties at auction in a single morning.
While prices were all below $1m, he said the number of bidders were strong, with some confidence returning after the latest US inflation figures were better than expected.
Mr Bell said there would be a growing number of opportunities for both buyers and sellers in the market in coming months, with some homeowners moving to capitalise on the still-high prices.
“For those wanting to sell in the next five years, all the indications are that every day from now until at least 2024, we are going to see property values soften, which means by not selling, you are losing money,” Mr Bell said.
“My advice would be don’t put off the decision to sell until a later date when prices will almost certainly be lower.
“The sensible thing is to sell sooner, particularly as the Gold Coast has its big selling season coming up, now is a great time to sell, while those with investment properties or holiday homes also have an option to sell that to reduce the debt on their own home, to avoid the coming financial pressure.”
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Originally published as Gold Coast real estate: 2023 predictions and tips
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