Gold Coast housing prices: Suburbs where land values are increasing $400 a day.
New data reveals average Gold Coast property prices increased by nearly $400 a day in the past year - jumping by more than 30 per cent in some suburbs. WHAT’S HAPPENING IN YOUR AREA
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GOLD Coast property prices have increased by nearly $400 a day in the past year - jumping by more than 30 per cent in some suburbs - new data reveals.
The average Gold Coast home now costs $709,992, up from $568,566 in August 2020, according to new figures compiled by Corelogic. The $141,426 average increase in just a year highlights the pressure the city’s property market is under.
The Gold Coast’s increase was $98,000 higher relative to greater Brisbane, with the growth of the city’s property prices also outpacing Adelaide, Darwin and Perth.
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Corelogic research director Tim Lawless said the past year had seen the highest rate of capital gain across the Gold Coast since the 2001-2004 housing boom. Back then, the percentage jump in the median sale value across the city was 31 per cent for the entire three years – compared to a similar hike in the past 12 months for Broadbeach, Burleigh and Coolangatta.
“The Gold Coast housing market is benefiting from a national trend where demand for housing within lifestyle regions that are both commutable and highly liveable has surged,” he said.
“Such strong demand may be partially related to the new found popularity of remote working arrangements, but also surging interstate migration and rising demand for holiday homes.
“Despite the substantial increase in housing prices, for buyers from Sydney (the) Gold Coast home prices are probably perceived as exceptionally good value for money because the median dwelling value in Sydney is almost $330,000 higher.”
The greatest increase has been in suburbs along the future southern route of the Gold Coast light rail, according to the data, with the next stages to run from Broadbeach to Burleigh Heads and to the border via Gold Coast Airport.
Broadbeach-Burleigh recorded a 32.4 per cent rise in property values between August 2020 and August 2021 while Coolangatta jumped 32 per cent.
Every suburb excluding Surfers Paradise – which still jumped 16.9 – saw increases of at least 20 per cent.
Corelogic’s report said the softer result in the party precinct was related to the unit market, where the annual rate of growth was recorded at 12.9 per cent. Separately house values recorded a much higher 26.7 per cent rise over the same period.
Mr Lawless said he anticipated the growth to continue on the back of strong interstate interest.
“While the lifestyle factors are likely to be a key attraction for buyers to the area, other factors such as the international airport and commutability to Brisbane by road and Sydney/Melbourne by air would also be appealing,” he said.
“Additionally, the diversity of the economy and quality of amenities are other key factors that prospective buyers are likely to find attractive.”
It comes as the Gold Coast experiences its largest development boom since the 1980s and a giant spike in unit sales and new tower builds.
Leading real estate figures say they do not anticipate spiking in property values will turn off desperate Covid-stressed interstate visitors from continuing to snap up property.
Ray White Surfers Paradise boss Andrew Bell said strong sales had continued unabated through the year after more than $800 million of units were sold in the first quarter of 2020.
“If that trend continues, we will sell somewhere between four and five times the previous year,” he said.
“Whilst nearly 40 per cent of the sales were in the central parts of the Gold Coast such as Southport, Surfers Paradise, Main Beach and Broadbeach, we know that developments are alive right across the Gold Coast.
“Going forward this sales rate will be more dependent on availability of new stock than it will be on demand and whilst there are a lot of development applications in at council, not all will be approved, and so we don’t have a clear read on the supply over the next two years.
“But we know the demand is unprecedented,” Mr Bell said.
Gold Coast unit sales leap 238 per cent in 2020 while nine out of 10 houses up for sale are being snapped up by eager buyers in a record-breaking splurge.
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Of the stock marketed in the first three months of 2021, 91 per cent was sold, according to a report by real estate firm Knight Frank.
It dwarfed the clearance rates in Sydney (58 per cent), Brisbane (54 per cent) and Melbourne (24 per cent). Perth was closest to the Gold Coast with 85 per cent of homes put up for sale in the first quarter changing hands.
According to the report, Gold Coast unit sales accounted for 75 per cent of all residential development sales in 2020, significantly higher than the 29 per cent in 2019.
But it is coming at a cost, with the number of new units available on the Gold Coast falling to its lowest level in more than seven years as pressure grows on the city’s booming property market.
The 624 units on the market at the end of June were the smallest number seen since early 2014.
An Urbis Gold Coast apartment essentials report for the second quarter of this year shows 1192 units were sold on the Gold Coast between January and June, which is a 21 per cent increase on the 987 sold through the entirety of 2020.
Originally published as Gold Coast housing prices: Suburbs where land values are increasing $400 a day.
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