Waiting for the Gold Coast property market to peak? Best get comfortable, you could be waiting a while.
Debate over how long the heated market will last has rumbled on since the news spread last October that someone had paid a whopping $27m for a waterfront mansion on the Isle of Capri – setting the Queensland record at the time.
That sale was only the beginning of a string of high-end transactions that have since dominated the market, starting with the $12.5m deal struck for a main river mansion in Broadbeach in January. This was followed in March with the sale of a Southport mansion for $24m, and last month a penthouse unit in the Soul building in Surfers Paradise exchanged for a record-breaking $15.25m
There are others.
In fact, there have been in excess of 20 properties this year – houses and units – for which buyers have stumped up more than $6m. This is almost double the number that sold above this price point in 2020.
Sales between $3m and $5m have also been plentiful. All are serving to fuel the market and house price growth.
Six months into the year, some may have expected to see signs of fatigue, but the Gold Coast market remains defiant.
The latest Property Price Index report from Hotspotting has earmarked the region to be in the country’s top ten localities for continued price growth.
The Gold Coast trumps all other regional markets, including its northern nemesis, the Sunshine Coast, which the report stated is showing signs of a slowdown. (Although, this may soon change after details emerged on the weekend confirming two recent mega sales in the area totalling $56m.)
A buyer from Victoria snapped up 59 Commodore Drive, Paradise Waters, last week for $5.5m.
Back on the Gold Coast listings continue to shift at unprecedented speed, with houses sitting on the market for an average of 47 days, compared with 74 days 12 months ago, and units 55 days, compared with 87 at the same time last year.
Just when you think the pressure-cooker might start to lose steam, a fresh round of Covid-19 restrictions bring everything back to the boil.
Jamie Harrison of Kollosche said the most recent lockdown in Melbourne had triggered fresh interest in the Gold Coast as residents took action on their desire for more space, sun and surf.
He said inquiries from the southern states always picked up at this time of year when the mercury started to drop and the prospect of another long, gloomy winter set in.
Nicole Bricknell of Cole Residential estate agency, who just penned a $5.5m contract for a six-bedroom, six-bathroom, three-storey, main river residence in Paradise Point to a buyer from Victoria, agreed sales to the interstate market remained strong.
In the unit market, more than $110m in sales have been ratcheted up for a new beachfront development in Surfers Paradise, which is yet to be approved by council.
Buyers have forked out between $3.5m and $9m for half of the 43 units earmarked for “Coast”, a 35-storey luxury high-rise. This brought the median unit sales price in the building to $4.5m.
More than half of the Gold Coast’s 52 suburbs now have a median house price of more than $1m, according to Core Logic. Palm Beach, Burleigh Heads, Tallebudgera, Burleigh Waters, Miami, Tallai, Coolangatta, Benowa, Bonogin, Currumbin Waters, Surfers Paradise and Mount Nathan were newcomers to the price point in May, compared with the same time last year.
So where do buyers go if, after all this, they still think they can find themselves a bargain?
As the million-dollar house price club shows, the central and southern areas of the Coast are all but saturated. There will be relatively few, if any undiscovered gems to uncover there.
The advice? Head north.
According to the latest Heron Todd White report, it is the suburbs of Coombabah and Biggera Waters, along with those around the Broadwater that, despite registering steady capital growth, still represent value for money.
Author: Lisa Hughes
Originally published 21 June 2021 RealEstate.com.au