Booming conditions slated for Gold Coast’s housing markets

By Gerv Tacadena | 10 Nov 2021

Local markets in the Gold Coast region are experiencing high levels of market pressure, which could point to another 12 months of booming conditions.

Local markets in the Gold Coast region are experiencing high levels of market pressure, which could point to another 12 months of booming conditions.

InvestorKit's latest report showed that eight markets across the Gold Coast region reported strong market indicators over the year to August 2021, with Broadbeach - Burleigh recording the highest median house price increase.

InvestorKit head of research Arjun Paliwal said the limited supply of homes in the Gold Coast has been pushing prices up across the region, especially amid the sea-change trend among Sydney and Melbourne buyers.

"While house prices in Surfers Paradise and Broadbeach - Burleigh surpassed the $1m mark a few years ago, with Coolangatta fast approaching, many other regions in the Gold Coast remain quite affordable," he said.

"In saying that, the 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."

Over the 12 months to August, the Gold Coast region reported a 39% growth in sales volume, while total listings fell by 7.3%.

Mr Paliwal said these figures indicate that the Gold Coast is experiencing a demand-led property boom, with vacancy rates already at "crisis level".

"Data on rental prices indicates similar intense market pressure as the sales market, and investors will notice a decline in rental yields as house values increase," he said.

Broadbeach - Burleigh, Surfers Paradise, and Coolangatta, are expected to hit medium-level yields of 3% while those in growing markets such as Robina, Nerang and Southport are likely to report 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," Mr Paliwal said.

Booming Gold Coast markets

Market

House Price Growth

Unit Price Growth

Remarks

Broadbeach – Burleigh

38.2%

15.7%

Days-on-market for both houses and units decreased significantly.

Coolangatta

21%

16.9%

The market is expected to record a rental yield of more than 3.5%.

Gold Coast - North

11.2%

5.6%

Rental vacancy rate is sitting below 1%.

Nerang

18.1%

13.1%

Units are expected to record higher rental yields, up to more than 5% versus 4% for houses.

Ormeau – Oxford

13.7%

4.3%

Rents increased for both houses and units.

Robina

13.4%

6.5%

The heavy uplift in prices slightly reduced expected rental yields.

Southport

14.1%

89%

Rental yields are expected to increase to above 4%.

Surfers Paradise

18.9%

13.5%

Rising prices, declining inventory, and drop in vendor discounting makes it a high-pressure sales market.

Photo by City of Gold Coast on Unsplash.

Top Suburbs : belmont , ferntree gully , berala , glendenning , west wodonga

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