- Gold Coast has experienced a demand-led property boom with monthly sales volumes growing 39.9%
- House prices in Broadbeach – Burleigh experienced the highest annual growth at 38.2%
- Market pressure will see house prices continue to rise in next year, said InvestorKit head of research and founder
The Gold Coast is experiencing some of the highest property market pressure in the country, according to a new report by InvestorKit.
Its steady growth over the past 10 years has been quickly accelerated due to the COVID-19 pandemic.
Over the past 12 months to August 2021, Gold Coast has experienced a demand-led property boom with monthly sales volumes growing 39.9%, a 7.3% fall in total monthly listings, and some regions at crisis level with vacancy rates lower than 1%.
InvestorKit head of research and founder Arjun Paliwal said, “The significant stock shortage in the Gold Coast is pushing house prices up, as buyers from Sydney and Melbourne consider a sea change and shift in lifestyle during the pandemic and others bring forward their retirement plans.
“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.”
Broadbeach – Burleigh
House prices in Broadbeach – Burleigh experienced the highest annual growth in the Gold Coast in the 12 months to August 2021, at 38.2%, while units grew by 15.7%.
The average days on market for sales has declined 39.4% for houses and 25.4% for units.
The pressure within the rental markets has led to a strong rise in median rents over the last year, up 15.6% for houses, and 13.3% for units annually.
Analysing the 10-year trend, between 2012 and 2021, the report found houses in Broadbeach – Burleigh experienced some of the highest growth, up 131%, compared to unit prices at 53%.
Coolangatta
Median house prices in Coolangatta rose 21% over the past year, while units have grown by 16.9%.
Median rents are up 10.4% for houses, and 10% for units.
The report said investors can expect a medium-level rental yield of more than 3.5% for both houses and units, which are relatively well placed in the current low-rate environment.
Coolangatta also experienced some of the highest growth, when analysing the 10-year trend, with median house prices up 102%, compared to unit prices at 86%.
Gold Coast – North
Median house prices in Gold Coast – North increased 11.2% while units grew 5.6% in the 12 months to August 2021.
There is an indication of a high-pressure rental market with the average number of monthly listings for lease declining over the last 15 months, down 21.1% and 11.3%, respectively, for houses and units.
The vacancy rate is now sitting below 1%.
Nerang
Median house prices in Nerang increased 18.1% while units have grown 13.1% this year.
Pressure within the rental market has led to a steady rise in median rents, with houses up 10% and units up 4.7%.
The report said investors can expect house rental yields of more than 4% while units can command a high rental yield of more than 5%.
Ormeau – Oxenford
Median house prices in Ormeau – Oxenford experienced one of the lowest increases in the region at 13.7%, yet capital growth remains strong.
Unit prices increased by 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.
Robina
Robina’s median house prices have achieved a 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 report found yields are reducing slightly due to the heavy uplift in prices. However, rents are also rising steadily.
Southport
Over the past year, median house prices in Southport have been rising, with house prices increasing 14.1% and units growing 8.9%, annually.
Pressure within the rental market has led to a steady rise in median rents over the last year, up 10.1% for houses, and 7.5% for units annually.
The report said investors can expect rental yields above 4%
Surfers Paradise
Median house prices in Surfers Paradise experienced some of the highest growth rates in the Gold Coast, with houses increasing 18.9% and units rising 13.5%.
The monthly sales volumes for houses have increased 52% and 72.7% for units.
The combination of rising prices, declining inventory, and drop in vendor discounting indicates Surfers Paradise is a high-pressure sales market.
“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.”
InvestorKit head of research and founder Arjun Paliwal
