The Gold Coast property market is a hotspot for investors and buyers with one query in mind: Will property in Gold Coast drop in price? With constant housing shortages, increased unit values, and ongoing population growth, property values will continue to hold strong in 2025.
Industry experts, including CoreLogic’s analysts and the chief economist at REA Group, have forecasted a 4-6% price rise during the period, not a drop. This article explores key trends in the market, expert analysis, and whether now is the right time to buy or sell real estate.
Gold Coast Property Market Overview
The 2025 property market in the Gold Coast presents both opportunities and challenges:
- A housing shortage is pushing median house values higher, especially in sought-after areas like Surfers Paradise and surrounding suburbs.
- The Gold Coast rental supply is shrinking—from 1,900 units in 2025 to just 50 in 2027—which is expected to drive up prices.
- The median house price currently sits at $1 million, while properties in Palm Beach average $1.3 million.
- The rental market remains tight, with vacancy rates below 1% and rental prices projected to increase by 8-10% in 2025 (CoreLogic, REIQ).
What Factors Could Cause Gold Coast House Prices to Drop?
While prices are expected to remain strong, a few factors could slow down growth:
1. Interest Rate Adjustments
- Major banks predict a drop in interest rates in 2025, with CBA forecasting 3.35% and Westpac expecting 3.6% by mid-year.
- While lower interest rates could boost borrowing capacity, demand remains high, making a price crash unlikely.
2. Economic Uncertainty & Market Conditions
- A major financial crisis or economic downturn could impact house price growth.
- However, the 2025 market outlook remains positive, with property values expected to reach 90% of projected gains.
3. Supply and Demand Imbalance
- New housing supply remains lower than demand, due to labor shortages, rising construction costs, and limited land availability.
- Even if demand slows slightly, Gold Coast prices are unlikely to drop significantly.
Why Gold Coast Property Prices Will Likely Stay Strong in 2025
Despite some risks, the real estate market is set for continued growth, driven by several key factors:
1. Ongoing Housing Shortages
- Approval rates for new homes remain below required levels, tightening supply further.
- Construction delays due to labor shortages are exacerbating the housing crisis.
- Limited land availability continues to push prices upward.
2. Population Growth & Migration Trends
- The Gold Coast population is expected to reach 753,000 by 2025, adding 250,000 new residents over the next decade.
- Interstate migration, particularly from Sydney and Melbourne, remains strong.
- Job opportunities and lifestyle appeal continue to fuel housing demand.
3. Strong Rental Market & Investor Demand
- Rising rental prices due to severe housing shortages provide higher yields for people investing in the Gold Coast.
- Low rental vacancy rates (below 1%) indicate sustained demand.
- Investors are capitalizing on strong rental returns, keeping the market competitive.
Should You Buy or Sell Property in 2025?
With a strong growth outlook, both buyers and sellers have opportunities in 2025:
For Buyers:
✅ Act sooner rather than later—prices are expected to increase by another 4-6%.
✅ Interstate migration continues to drive demand, making early investment strategic.
✅ Expected interest rate cuts in 2025 may improve affordability.
For Sellers:
✅ Limited housing supply gives sellers an advantage.
✅ Surfers Paradise and other top suburbs are seeing high demand.
✅ The market is expected to stay strong, making early 2025 a great time to sell.
Conclusion
There are no clear signs of a market downturn. Instead, experts predict steady price growth, driven by strong demand and limited supply.
If you’re concerned about finding affordable properties, check out our round ups of cheap houses for sale in Gold Coast and cheap Gold Coast rentals to find suburbs within your budget.
FAQs on Will Gold Coast House Prices Drop?
1. Are Gold Coast house prices expected to crash?
No, experts predict a 4-6% price increase in 2025 due to high demand and supply shortages.
2. What factors are driving Gold Coast property prices up?
Key drivers include population growth, limited land availability, and rental demand.
3. Is now a good time to buy property in the Gold Coast?
Yes, buying early in 2025 may be beneficial before prices increase further.
4. Will interest rate cuts make homes more affordable?
Yes, but they are unlikely to cause a price drop due to sustained demand.
