A TOP economist has tipped the Gold Coast’s property boom to last for at least three years on the back of a perfect storm of economic factors.
But the population growth powering the surge in real estate sales may never let up according to one of Australia’s leading social researchers.
Housing Association chief economist Harley Dale said the Gold Coast’s record-breaking surge in real estate activity was not surprising and expected it to continue until at least 2024.
“I think it will continue for some time to come given the current environment of super lower interest rates, federal government stimulus which has driven prices up,” he said.
“We have now found ourselves in an environment where we have a cash rate of 0.1 per cent and that feeds through to very low variable mortgages or fixed interest rates.
“Given that circumstance and the recovery in consumer and business confidence, the amount of net interstate migration post COVID and the general state of the Queensland economy, prices will not necessarily rise at a gangbusters rate but this residential property upturn will sustain.”
Experienced real estate agents have told the Bulletin the current boom is the biggest in 40 years, while the supply of units had slowed because fewer towers or smaller projects had been built.
Social researcher Mark McCrindle said there was a strong shift from residents in southern states moving to the Gold Coast, creating a sustainable population increase.
“Previously the Gold Coast’s growth was at the whims of policy and the economy while this interstate growth is now far more sustainable than relying on those coming from overseas,” he said.
“Having baked-in growth is great for the future.”
Andrew Potts – Gold Coast Bulletin – 22 March 2021
