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Queensland’s Gold Coast has emerged as one of the best-performing real estate markets over the past year, recording double-digit price growth for both houses and units.
Between Q1 2020 and Q1 2021, Gold Coast Metro’s median house prices increased by 20.2 per cent to $787,000, while median unit prices increased by 10.2 per cent to $496,000, according to the latest figures from PRD Real Estate.
Across the same period, the total sales volume in Gold Coast Metro increased by 52.9 per cent for houses and 75.6 per cent for units, resulting in 2,347 and 3,520 sales, respectively.
According to PRD’s latest Affordable & Liveable Property Guide, the median price growth within the region occurred amid “increased sales activity, indicating real returns in capital investment”.
The real estate group considered it as “great news for current and future owner-occupiers, as they can be confident of the property’s market value”.
“This is further supported by the decline in average days on the market by -30.3 per cent to 46 days,” the report added.
Among the top performers across the Gold Coast Metro over the first half of 2021 are:
|
Area |
Suburb |
Median Price 2020/21 |
Price Growth |
|
Inner |
Surfers Paradise - House |
$1,715,000 |
14.3% |
|
Inner |
Carrara - Unit |
$480,000 |
4.3% |
|
North |
Runaway Bay - House |
$1,100,000 |
5.6% |
|
North |
Jacobs Well - Unit |
$690,000 |
21.1% |
|
South |
Mermaid Beach - House |
$1,670,000 |
14.7% |
|
South |
Robina - Unit |
$505,000 |
7.4% |
|
West |
Nerang - House |
$516,000 |
12.2% |
|
West |
Nerang - Unit |
$346,000 |
6.5% |
Affordable and liveable
Majority of the affordable and liveable suburbs identified by PRD were concentrated across the northern and southern areas of Gold Coast Metro.
Opportunities were also flagged as present within the Gold Coast CBD for those with a budget below $500,000.
“Although opportunity in this price range is limited, eagle-eyed first home buyers and investors can benefit,” PRD noted.
The report listed the most affordable and liveable suburbs across the Gold Coast Metro as Oxenford, Maudsland, Robina, Varsity Lakes and Helensvale.
Affordability was measured based on median prices, while liveability was measured based on low crime rates, availability of amenities within a 5km radius and unemployment rate.
Looking ahead, PRD said it’s critical that the Gold Coast property market achieves balance and makes price growth more sustainable.
To make this possible, one of the key focuses should be residential projects, “as it will cater to the high local demand and growing interstate and foreign investment demand into the area”, the report concluded.
Rental market
Much like the sales market, Gold Coast’s rental unit market has also shown strong growth and resilience throughout the pandemic, providing comfort to investors who may be wary of oversupply amid restrictive economic and border conditions, according to PRD.
In the 12 months to Q1 2021, the median unit rental price increased by 6 per cent to $460 a week. Between houses and units, the former currently rents for an average $597 per week while the latter rents for $460.
Over the same period, average days to let declined by 33.3 per cent to just 16 days.
Local vacancy rates have also fallen to 0.8 of a percentage point, well below the vacancy rates of Brisbane Metro at 1.5 per cent and Sydney Metro at 3.4 per cent.
It’s also well below the “healthy benchmark” set by the Real Estate Institute of Australia (REIA) of 3 per cent.
“Gold Coast Metro’s vacancy rate has shown a declining trend since peaking in May 2020 due to COVID-19, and this will invite astute investors to capitalise in the Gold Coast market,” the report said.
Rental yields are currently at 4.7 per cent for houses and 5.5 per cent for units across the Gold Coast Metro, also surpassing yields on offer across Brisbane Metro and Sydney Metro.
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