The Gold Coast, with its breathtaking beaches and enviable lifestyle, remains a top choice for real estate investors and those seeking to relocate. However, like the rest of the country, the Gold Coast has been grappling with a chronic shortage of new properties. Despite this challenge, the housing market is expected to see a 4% increase in value by 2024, according to experts.
The Current State of the Gold Coast Property Market
The Gold Coast's property market has experienced limited supply, especially in popular areas such as the North Shore, Coastal Fringe, and Southern Beaches. This scarcity, coupled with strong population growth, has contributed to the rise in property prices. In fact, according to SQM Research, Gold Coast property prices have seen an annual increase of 6.5%.
The median value of a home on the Gold Coast currently sits at just over one million dollars, with record-high prices for both houses and units. This suggests a robust market that shows no signs of slowing down.
Tim Lawless. Image: CoreLogic
Expert Insights and Predictions for 2024
To gain further insights into the Gold Coast's property market in 2024, The Property Tribune consulted a range of experts. Tony Coughran, a Gold Coast buyer's agent, anticipates a "red-hot" market for properties under one million dollars, with an expected price increase of 4% to 8%. Knight Frank's research also supports Coughran's predictions, estimating a growth rate of 4% in 2024 and 6% in 2025.
Coughran also highlights that properties in the higher price ranges, particularly those above 1.5 to 3.5 million dollars, may experience a slight slowdown due to financial pressures. However, properties in the prestige market, especially well-located ones, are expected to perform strongly.
Andrew Henderson, the REIQ zone chair for the Gold Coast, believes that the real estate market will benefit from strong migration numbers from southern capital cities. He also expects the development of mid- and high-rise units along the coastline to continue.
Alison Hedger. Image: LinkedIn
Alison Hedger, the director of residential project sales at Knight Frank, shares an optimistic outlook for 2024. She mentions that as we enter the new year, weekly rents remain on the rise, vacancy rates remain low, and established residential prices continue to surge. Although there has been a shortage of new home constructions, Hedger predicts that this pressure will ease throughout 2024.
Michael Christie, CEO of Christie & Co. Property Group, emphasizes that established homeowners will benefit from consistent capital and rental growth, thanks to limited availability of stock. He also mentions that centrally located housing remains in high demand and within reach for many.
Continued International Interest
Aside from interstate migrants, the Gold Coast is also attracting considerable interest from Asian buyers. Daniel Ho, co-founder and group managing director of Juwai IQI, notes a significant increase in Chinese buyer inquiries. In the third quarter of 2023 alone, Chinese buyer enquiries were up 138% compared to the previous year.
Ho predicts a shift in buyer behavior in 2024, with fewer Asian buyers looking for investment properties and vacation homes. Instead, there will be a rise in buyers seeking primary residences. He points out that many "foreign" buyers today are actually new Australians who intend to stay long term. With more than 18,000 students in Queensland, Ho expects many of them to purchase properties after completing their studies.
Challenges for First Home Buyers and Renters
While the overall outlook for the Gold Coast's property market is positive, there are challenges ahead for some. First home buyers may need to adjust their expectations and price points due to reduced borrowing capacities. Tony Coughran advises being flexible and finding an entry-level comfort zone within the market.
Renters will also face difficulties as the supply of rental properties continues to be an issue. Michael Pell, director of Propell Property, highlights the population growth from southern states as a significant factor contributing to the pressure on housing and rental availability.
Michael Pell. Image: LinkedIn
Despite these challenges, Michael Christie points out that first home buyers in Queensland are fortunate to benefit from the doubling of the First Home Owner grant. Opportunities for affordable housing and significant growth can be found in southern and northern coastal suburbs like Pimpama, Coomera, and Upper Coomera.
Gold Coast's Future and Factors Affecting Property Prices
While the pace of growth in housing values may slow over the next year, Tim Lawless from CoreLogic expects a modest level of appreciation to continue. Factors such as migration, low supply, relative affordability compared to Sydney, and interest rates will support the market's performance.
Lawless emphasizes that the direction of interest rates will play a crucial role in the Gold Coast's market performance in 2024. Lower interest rates would drive housing demand, while an increase could pose a downside risk.
Michael Christie suggests that the revival of the construction industry will also influence property prices on the Gold Coast. He expects a surge in new constructions entering the market, particularly in the central Gold Coast, in the third to fourth quarters of the year.
In conclusion, the Gold Coast's property market is poised for growth in 2024, with various factors contributing to its positive outlook. While challenges remain for some buyers and renters, the overall fundamentals of the Gold Coast's real estate market remain solid. With its stunning beaches and desirable lifestyle, the Gold Coast continues to be an attractive destination for both investors and those seeking a new place to call home.
