- Over the past year, Gold Coast has experienced a demand-led property boom
- Broadbeach - Burleigh experienced the highest house price increase at +38.2%
- Coolangatta (+21% ) and Surfers Paradise (+18.9%) had the next fastest price rises
Over the past year, the Gold Coast has experienced a demand-led property boom, with monthly sales volumes growing 39.9%, while the total monthly listings have fallen 7.3%, according to new research by InvestorKit.
Property market pressure in the Gold Coast is among the highest in the country, following a steady growth over the past 10 years and a significant acceleration since the start of the pandemic.
InvestorKit head of research and founder Arjun Paliwal said that the significant stock shortage in the Gold Coast is “pushing house prices up”.
Broadbeach – Burleigh experienced the highest median house price increase across the Gold Coast at +38.2%, followed by Coolangatta and Surfers paradise at +21% and +18.9%.
“While house prices in Surfers Paradise and Broadbeach – Burleigh surpassed the $1 million mark a few years ago, with Coolangatta fast approaching, many other regions in the Gold Coast remain quite affordable,” said Mr Paliwal.
With the fastest rates of capital growth occurring where there is the highest market pressure, Mr Paliwal expects the Gold Coast region to continue booming over the next six to 12 months.
“Market pressure in the region will see house prices continue to rise over the next 12 months, but the pace of growth may slow as sales volumes decline slightly in some areas and listings increase,” he said.
He also noted that rental price data is indicating a similar intense market pressure to the sales market. He believes investors will notice a decline in rental yields as house values increase.
For those who have properties across the most popular beachside regions of Broadbeach – Burleigh, Surfers Paradise and Coolangatta, medium level yields of 3% are to be expected, while those in growing markets, such as Robina, Nerang and Southport may see yields above 4%.
“Considering the increasing rents, low interest rates, and affordability of these regions in comparison to major city coastal markets, the yields are well placed in the current environment,” he said.
Gold Coast (2019-2021)
Broadbeach – Burleigh
Houses experienced the highest annual growth in the Gold Coast in the last 12 months to August 2021, at +38.2%, while units grew by +15.7%.
The average day on market sales has declined 39.4% for houses and 24.4% for units.
The pressure within the rental market has led to a strong rise in median rents over the last year, up +15.6% for houses, and +13.3% for units annually.
Median house prices rose +21% over the 12 months to August, while units have grown +16.9%.
The pressure within the rental market has led to a strong rise in median rents, too, up +10.4% for houses, and +10% for units annually.
Investors can expect a medium-level rental yield of more than 3.5% for both houses and units in Coolangatta, which are relatively well placed in the current low-rate environment.
Gold Coast – North
Median house prices increased +11.2% while units grew just +5.6% in the 12 months to August 2021.
The average number of monthly listings for lease has been declining over the last 15 months, down 21.1% and 11.3%, respectively, for houses and units over the past year indicating a high-pressure rental market.
The vacancy rate is now sitting well below 1%.
Median house prices increased +18.1% while units have grown +13.1% this year.
Investors can expect house rental yields of more than 4% while units can command a high rental yield of more than 5%.
Ormeau – Oxenford
Experiencing one of the lowest increases in the region, at +13.7%, the report states capital growth still remains strong overall. Meanwhile, unit prices increased by just +4.3%.
Increased rental demand in the area has led to a rise in median rents over the last year, up +6.5% for houses and +7.5% for units.
Median house prices have achieved +13.4% annual growth while units have grown +6.5% annually.
With rental market pressure rising, investors can expect a healthy house rental yield of more than 4% and a high unit rental yield of more than 5%.
The data reveals yields are reducing slightly due to the heavy uplift in prices, however, rents are also rising steadily.
Median house prices have been rising over the past year, with house prices increasing +14.1% and units growing +8.9%.
Pressure within the rental market has led to a steady rise in median rents over the last year, +10.1% for houses, and +7.5% for units annually.
Investors can expect rental yields above 4%.
Median house prices experienced some of the highest growth rates in the Gold Coast increasing +18.9%, with units +13.5%.
The monthly sales volumes for houses has increased +52% and +72.7% for units.
The combination of rising prices, declining inventory, and falls in vendor discounting indicates the region is a high-pressure sales market.
Ten Year Trend
Analysing the 10-year trend between 2012 and 2021, the Market Pressure Review Report found houses performed slightly better than units for median house prices in the Gold Coast.
Houses in Broadbeach – Burleigh and Coolangatta experienced the highest growth, compared to unit prices in the same area.
QLD Price Growth
|Region||10-year house increase||10-year unit increase|
|Broadbeach – Burleigh||131%||53%|