In June, the recovery of home values across the nation persisted, as indicated by the latest data revealing that national prices are now merely 0.1% lower than they were a year ago. Moreover, prices in the combined capital cities have surpassed last year’s figures.
According to the most recent PropTrack Home Price Index, Australian home prices experienced a 0.3% month-on-month increase in June. Interestingly, this growth occurred despite the Reserve Bank’s decision to raise the cash rate for the 12th time since May of the previous year. The impact of higher interest rates has been counterbalanced by a limited influx of new properties into the market, as well as robust housing demand fundamentals. Although the total number of properties listed on realestate.com.au has shown improvement compared to the previous year, the supply of new properties entering the market has remained subdued, resulting in a more competitive environment for properties entering the market. Strong auction clearance rates and a reduced number of properties hitting the market during the winter season are likely to sustain price growth in the short term, despite the potential for further interest rate increases. It’s worth noting that prices in the capital cities have now exceeded their levels from a year ago.
However, while capital cities experienced a price increase of 3% since December, regional areas recorded slower growth at 0.8%.
Since September 2019, there has been a significant increase in the median house price on the Gold Coast. Back then, the median price stood at $642,000. However, as of now, the median price for a house is $945,000. This indicates a substantial growth of at least $143,500 compared to the median house price in Brisbane. Furthermore, it brings the Gold Coast closer to the median house price in Melbourne, highlighting the notable upward trajectory of property values in the area.
By the end of the decade, the price of a typical house on the Gold Coast is projected to surpass that of greater Sydney and Melbourne, according to data from PropTrack. Over the past eight years, Gold Coast house prices have witnessed a remarkable surge of 96.3%. However, Cameron Kusher, the head of economic research at PropTrack, anticipates that such rapid growth is unlikely to be replicated in the coming decade. Nevertheless, it is expected that the price of a typical house on the Gold Coast could reach an astonishing $2.7 million, surpassing the prices of all capital cities in the nation.
Andrew Henderson, the Gold Coast zone chair of the Real Estate Institute of Queensland, acknowledged the positive implications of such substantial price growth for existing homeowners. However, he emphasized that the city’s growth is contingent upon its affordability, recognizing the importance of maintaining a balance between price increases and accessibility for prospective buyers.
Which Gold Coast suburbs are booming?
Sought-after suburbs on the Gold Coast have experienced a remarkable doubling of home values within a relatively short timeframe, fueled by robust demand and limited housing supply in these top-performing markets. Despite the rise in interest rates since last year, these factors have acted as a buffer against price declines. Tallebudgera Valley emerged as the leading local house market, with prices in this southern acreage suburb soaring by 100% in just 50 months until March of this year. The average house in this exclusive area, renowned for its expansive lots and lush rainforest setting, now commands a price tag of $2.02 million.
Other top suburbs on the list also witnessed a doubling of house prices within six years. These include Burleigh Waters (median price $1.5 million), Mount Nathan ($1.55 million), Palm Beach ($1.5 million), Worongary ($1.275 million), Miami ($1.38 million), Bilinga ($1.3 million), Mermaid Waters ($1.65 million), and Wongawallan ($1.39 million).
In the unit market, Palm Beach secured the top spot, with prices rising by 102% over a span of seven years, reaching a median price of $840,000.
What is the current outlook for rental prices on the Gold Coast?
Queensland is known to be one of the least affordable states for renters, with rental prices reaching significant levels, particularly in popular areas like the Gold Coast and Brisbane. In March, the typical rent for a unit on the Gold Coast stood at $750, while in Brisbane, it was $520. These figures exceed the take-home wages of several surveyed occupations, making it challenging for individuals to allocate a reasonable portion of their income towards rent. Even the highest paid essential workers, such as firefighters, school teachers, and ambulance officers, who earn a weekly net pay between $900 and $1000, would find themselves spending at least half of their income on rent in Brisbane and even more on the Gold Coast.
For landlords, however, these high rental prices can be advantageous in terms of rental yield. With the substantial demand for rental properties in desirable areas like the Gold Coast, landlords have the potential to generate significant returns on their investment. The strong demand coupled with limited housing supply often results in competitive rental markets, enabling landlords to charge higher rents and potentially achieve favorable rental yields.
To gain a better understanding of housing prices on the Gold Coast and determine the potential value of your property, consider taking action and scheduling a property appraisal today. Don’t miss out on the opportunity to stay informed and make informed decisions about your rental property. Contact us below to get started.
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