Gold Coast property market: How Glitter Strip land values compare to Australian capital cities

A leading property economist has warned the window for buying a Gold Coast property is rapidly closing, with renters set to face significant pain.

A LEADING property economist has warned the window for buying a Gold Coast property at lower prices is rapidly closing as the market rebounds from “the great correction”.

Falling land values and rising interest rates have slowed the property market from the highs of the Covid boom while mortgage stress levels have climbed.

But with population growth remaining steady as the development industry failing to keep pace on the Gold Coast, Ray White chief economist Nerida Conisbee said she expected Coast properties to remain at a premium.

Nerida Conisbee

“Population pressure is a big factor. With so many people still migrating to the Gold Coast, demand for housing is still high,” she said.

“The window for purchasing a home at these low prices is closing.

“The low prices that we have seen will not last. Prices will start to rise again, so if you are looking to purchase, don’t let that window close on you.”

The latest Colliers Market Overview report, released on Thursday, revealed the Gold Coast has avoided the worst of the market correction, with the economy tipped to annually grow four per cent during the next three years, far outstripping the 1.5 per cent anticipated growth of the national economy.

According to the report, the city’s median house price has fallen to $925,000, down 1.5 per cent or $15,000 from the $940,000 at the height of the market in June 2022.

This compares to the 8.4 per cent decline recorded nationally between May and January this year by CoreLogic’s national Daily Home Value Index.

More than 15,000 people are moving to the Gold Coast annually.

The development industry continues to build towers but at a slower rate. Picture Glenn Hampson

A new apartment essentials report by property consulting firm Urbis in February showed 100 projects have been launched across the Gold Coast in the past three years, containing 7760 new apartments. Currently there are around 5800 apartments under construction with around 3000 due to completion in 2023.

However, it warned the slowing market meant “new launch activity is expected to slow overall, which will further impact dwelling delivery in a market that is behind on dwelling targets, and indicating one of the tightest residential vacancy rates in the country.”

The low vacancy rate and high demand has seen rents increase 19 per cent nationally in the past year.

On the Gold Coast, rents have in creased by 16.9 per cent to a median of $725.

Ms Conisbee said developers needed to be encouraged to invest in build-to-rent projects to take pressure off the market.

“There has also been a big conversion of renters to buyers – and that is largely a result of this migration to the Gold Coast, and the prices rises in the rental market,” she said.

Revealed: Truth about Coast’s property market

THE Gold Coast’s real estate market is withstanding the heavier property value declines seen elsewhere around the country as the city’s economic growth outstrips national figures.

The latest Colliers Market Overview report, to be released on Thursday, reveals the Gold Coast economy will annually grow 4 per cent during the next three years, far outstripping the 1.5 per cent anticipated growth of the national economy.

According to the report, the city’s median house price has fallen to $925,000, down 1.5 per cent or $15,000 from the $940,000 at the height of the market in June 2022.

This compares to the 8.4 per cent decline recorded nationally between May and January this year by CoreLogic’s national Daily Home Value Index.

Colliers director Steven King. Photo: Supplied

Colliers Gold Coast director Steven King said the city’s economy was withstanding the year’s “great property market correction”.

“The latest population forecasts, the strength of the Gold Coast’s employment market and the massive investment in infrastructure across the city is providing the local property market with remarkable resilience,” he said.

“Certainly, we’re seeing challenges across the board, driven by higher construction costs and labour constraints causing ongoing housing supply issues, but the Gold Coast is still firing on all cylinders from an economic perspective which will continue to support the residential and commercial sectors in the near term.”

The Gold Coast’s housing market has declined by a much smaller amount than other capitals.

According to the report:

* Employment on the Gold Coast grew by 1 per cent across 2022, keeping the jobless rate at 2.9 per cent, well below the national rate of 3.7 per cent.

* There were $675m of property sold in 2022, around 25 per cent of total sales across the state.

* Retail rents have risen between 15-20 per cent in the past year.

* The Gold Coast office vacancy rate declined to 6 per cent in January, its lowest level in 14 years, with just 27,467 sq m out of 454,149sq m of available stock yet to be let.

* More than 131,000 sqm of industrial space was added to the market across 2022, almost double 2021’s figures.

The report tipped significant growth to occur in some of the Gold Coast’s western and northern suburbs.

“Ormeau-Oxenford will make up most of that population expansion with another 114,000 people expected to live there by 2041,” the report reads.

“Coomera’s population is likely to almost triple, while Worongary-Tallai, Southport-North, and Mermaid Beach-Broadbeach are each expected to double in population.”

Mr King said the city’s growth was not slowing.

“These growth forecasts underpin the pace of activity we are currently experiencing across each of the key property categories,” said Mr King.

The Gold Coast skyline is changing Picture Glenn Hampson.

“The high growth areas to the north and west are likely to drive sustained demand for new developments such as retail to service these areas, as well as industrial and commercial areas to provide key local employment nodes.”

The report comes just days after the Bulletin revealed fresh figures warning that the city’s unit rental market was set to remain one of the tightest in the country, with a slowing development industry failing to keep pace with population growth.

More than 15,000 people are moving to the Gold Coast annually.

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Originally published as Gold Coast property market: How Glitter Strip land values compare to Australian capital cities