Gold Coast closes the door on housing plunge

The Gold Coast property market has been resilient against the property downturn on the back of strong interstate migration through the pandemic.

The Gold Coast property market has been resilient against the property downturn on the back of strong interstate migration through the pandemic, driven by strong market fundamentals.

Real estate firm Colliers’ latest market report found median house prices in the region had slipped just 1.5 per cent – the equivalent of $15,000 – at the end of 2022 from the peak of $940,000 six months earlier.

Colliers Gold Coast director-in-charge Steven King said the latest data showed the region is holding firm, supported by continued growth in the city’s commercial property sector.

“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,” Mr King said.

The report highlighted the key economic markers underpinning the region’s success.

Unemployment on the Gold Coast remains at 2.9 per cent, sitting well below the national rate of 3.7 per cent, while the local economy is forecast to grow 4 per cent a year over the next three years, making it an economic hotspot in comparison to the Reserve Bank’s estimates of 1.5 per cent growth in the national economy in 2023 and 2024.

Ray White Surfers Paradise chief executive Andrew Bell said the face of the Gold Coast is changing, with greater interest coming from cashed-up buyers who are choosing to set down roots in the lifestyle region.

“This is the changing face of the Gold Coast,” Mr Bell said. “It's not a whim anymore, people are moving here and that rubs off to everything, cars and restaurants all over town. There is confidence in the region.”

Mr King did note the market has not been immune to the property and economic challenges facing other areas across the country.

“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 auction this month for a mansion at Tallebudgera Valley called Bellagio La Villa saw it sold for $42m. In 2021, the four-storey penthouse of the Soul tower was purchased by the co-founder of streetwear brand Culture Kings, Tah-nee Beard, for $15.25m at auction.

Data firm PropTrack’s latest Home Price Index revealed a modest increase in values nationally for the second month in a row, which suggests the market may be bottoming out after a nine-month price correction.