Median house prices and population growth are both on the rise on the Gold Coast
Christopher Jones – Director of Savills on the Gold Coast says, “As property professionals, we are
constantly asked to comment on the state of the residential market. Our answer needs to consider if
the client is a buyer or seller, an investor or owner occupier.”
Predominantly we represent the seller and are buoyed by the latest statistics supporting the growth and sustainability of the Gold Coast property market. Many experts believe the Gold Coast will be the best performing property market in Australia for 2017 with a growth estimate of 10-20%.
The Gold Coast seems to be enjoying a surge post the GFC following the capital city property markets remarkable recovery. Gold Coast home values are trending upwards consistently increasing on an annual basis from mid-2013. In support CoreLogic data reveals house prices have increased 6.2 per cent over the 12 months to December 2016 and 21.2per cent over three years. This record exceeds Brisbane by $85,000, is just short by $25,500 of Melbourne’s median price. Not surprisingly Sydney’s median house price continues to exceed every city in the country coming in at $905,000.
Low interest rates, tourism growth, population growth, the increasing diversification of employment options, and the huge amount of new infrastructure are the substantial factors supporting the current and expected growth.
With a median house price now of $600k it is great news for sellers but perhaps a challenge for new home buyers. Like many high demand locations, the Gold Coast has and should continue to develop vertical living options close to urban facilities and house and land options with localised facilities and schools. Our advice to buyers is to do whatever it takes to get into the market. I know that may be a little trite but it can be done and buyers should adopt a long-term strategy and understand that they will most likely have to compromise when buying onto the first rung of the property ladder. Perhaps the growth in the median house prices on the Gold Coast is the best indicator to install confidence in the future of their investment (2004 = $414K to 2016=$600K).
The Savills Residential team looks forward to assisting all our clients achieve the very best results possible.