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

InvestorKit’s latest report found that eight markets in the Gold Coast region reported strong market indicators for the year to August 2021, with Broadbeach – Burleigh posting the highest median home price increase.

Arjun Paliwal, InvestorKit’s head of research, said the limited supply of homes on the Gold Coast has pushed prices up across the region, especially amid the reversal trend among buyers from Sydney and Melbourne.

“While house prices in Surfers Paradise and Broadbeach – Burleigh crossed the $1 million mark a few years ago, with Coolangatta rapidly approaching, many other regions in the Gold Coast remain quite affordable,” he said.

“That said, market pressures in the region will see house prices continue to climb over the next 12 months, but the pace of growth may slow as sales volumes decline slightly in some areas and supply increases.”

For the 12 months to August, the Gold Coast region reported a 39% growth in sales volume, while the total number of offers declined by 7.3%.

Mr Paliwal said these numbers indicate the Gold Coast is experiencing a demand-driven real estate boom, with vacancy rates already at “crisis level”.

“Rental data indicates similar intense market pressures as the sales market, and investors will notice a decline in rental yields as home values ​​rise,” he said.

Broadbeach – Burleigh, Surfers Paradise and Coolangatta are expected to average returns of 3%, while those in growing markets such as Robina, Nerang and Southport are likely to report returns in excess of 4%.

“Given the rising rents, low interest rates and affordability of these regions compared to the major coastal urban markets, the yields are well positioned in the current environment,” said Mr Paliwal.

Booming Gold Coast Markets

Market

House price growth

Unit price growth

Remarks

Broadbeach – Burleigh

38.2%

15.7%

Days-on-market for both homes 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 is below 1%.

Nerang

18.1%

13.1%

Units are expected to achieve higher rental yields, to over 5% versus 4% for homes.

Ormeau – Oxford

13.7%

4.3%

Rents rose for both homes and units.

Robina

13.4%

6.5%

The sharp rise in prices caused the expected rental income to fall slightly.

Southport

14.1%

89%

Rental income is expected to rise above 4%.

Surfers paradise

18.9%

13.5%

Rising prices, dwindling inventory and falling supplier discounts make it a highly pressured sales market.

Photo by City of Gold Coast on Unsplash.

Top Suburbs: Stafford Hts, Tuart Hill, Leumeah, Harris Park, Wiley Park

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