Queensland's coastal property boom not done yet

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on November 10, 2021 Fact Checked
Queensland's coastal property boom not done yet

Property prices have exploded on the Sunshine Coast and Gold Coast by up to 54%, with more room for growth anticipated by experts.

Whether you head up or down the coast, the demand for property is the same - some of the highest in the country.

Queensland's Sunshine Coast and Gold Coast have experienced record property price growth over the course of the pandemic.

The Gold Coast experienced 'steady' price growth over the past 10 years, but these prices experienced 'significant' acceleration since the pandemic began.

The demand-led property boom saw monthly sales volumes rise 39.9% over the past 12 months, with vacancy rates at a 'crisis' level of less than 1%.

Findings from buyers' agency InvestorKit revealed that Broadbeach - Burleigh experienced the highest median house price growth of 38.2%. 

Following Broadbeach - Burleigh was Coolangatta where house prices rose by 21% and Surfers Paradise, up 18%.

Additionally, median house prices increased by 18.1% in Nerang; 14.1% in Southport; 13.7% in Ormeau - Oxenford;  13.4% in Robina; and 11.2% in Gold Coast - North according to InvestorKit's report.

Arjun Paliwal, Head of Research and founder of InvestorKit, forecasts that the Gold Coast region will continue to boom over the next six to 12 months.

"The significant stock shortage in the Gold Coast is pushing house prices up, as buyers from Sydney and Melbourne consider a seachange and shift in lifestyle during the pandemic and others bring forward their retirement plans," Mr Paliwal said.

"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."

However, he anticipates that the pace of growth may slow as sales volumes decline slightly in some areas.

Sunshine Coast's record-high house prices could push even higher

Domain's latest house price report revealed that the Sunshine Coast is home to some of the best-performers in annual price growth over the past 12 months.

Specifically, the median house price in Minyama exploded by 54.4% to $1.66 million, making it the sixth-best performer over the past year.

Also home to the eighth-best performer, Sunshine Beach, where house prices soared by 47.6% to an 'astonishing' $2.665 million.

The region's property boom was fuelled by 'insatiable' cashed-up southerners, with the 'aggressive' growth shooting the median house price of 11 suburbs into the millions.

This brings median house prices over $1 million in the Sunshine Coast to 15, with more tipped to join the club.

Domain chief of research and economics Dr Nicola Powell said there's still more room for growth as the market continues to power along.

"I would say the Sunshine Coast was one of the best performing cities in Australia over the September quarter … and it’s up there for annual growth," Dr Powell said.

Reed and Co Estate Agents director Adrian Reed said tension in the Noosa property marketplace is 'palpable' following the recent Queensland-record sale of a 'luxurious' Noosa apartment for $16.1 million.

"Records are being re-written daily, and the sense of urgency to secure blue-chip property is at a level we have never experienced," Ms Reed said.

"Homes are selling faster, and stock is not lingering or accumulating on the market."


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Rates correct as of December 7, 2021. View disclaimer.


Image by Lynda Hinton on Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Rachel is a Finance Journalist, and joined Savings in 2021. Coming from a background in the FinTech space, her interests include the innovation of lending technology, property, investing, and more. With a passion for educating and informing people about their finances, she hopes to increase the financial literacy of everyday Australians.

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