soho-logo-Hoz-Light

Will Gold Coast House Prices Drop?

December 9, 2022
Will Gold Coast House Prices Drop

Key takeaways:

  • This Gold Coast property market price growth pulled neighbouring suburbs in its growth, with some suburbs experiencing up to a 60% increase in 2021.
  • The house prices in Gold Coast are far from their pre-Covid levels yet, but it’s a good sign for property buyers and investors that these numbers are trending lower.
  • If you are holding out on buying a property now, whether for your own home or investment, it’s best to not wait too long.

Gold Coast house prices surged during the onset of the pandemic, a trend that continued for more than a year. This surge in house price in Gold Coast isn’t a surprise to many, especially industry experts, as the region’s real estate market has been growing steadily in the last decade or so. But will Gold Coast house prices drop soon?

Let’s investigate the rentals in Gold Coast, the current housing situation and neighbouring regions in Queensland to forecast what the rest of the year has to offer for potential buyers and investors.

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.

Recommended Reading: Gold Coast Property News

Gold Coast House Prices Surged, But Why?

Will Gold Coast House Prices Drop

In late 2021, InvestorKit published a report citing that many suburbs and communities in Gold Coast saw a property price increase, specifically property prices in the suburb of Burleigh increased by over 38% from August 2020 to August 2021. 

This Gold Coast property market price growth pulled neighbouring suburbs in its growth, with some suburbs experiencing up to a 60% increase in 2021. This recent phenomenon is what real estate experts would call the ‘cascading effect’. It marks the most significant growth phase for the region’s housing market in recent history. 

Impact of the pandemic on Gold Coast housing prices

Several factors impacted this surge in Gold Coast house prices, but Covid-19 is the most significant factor. Heavy restrictions were imposed by the Victorian and New South Wales government throughout the pandemic. 

These restrictions caused interstate migration to swell in Queensland, especially on the Gold Coast. The sudden rise in new arrivals of migrants and the subsequent demand for housing in Gold Coast contributed largely to the price surges in the region. 

According to the Gold Coast Bulletin, interstate migration resulted in housing prices skyrocketing with 11 suburbs seeing homes going up to $1 million. 

To put things into perspective, those who recently purchased a home or property in the Gold Coast were able to see the value of their investment grow in 12 months when it would normally take a 10-year period to see that much growth. 

Interstate migration

Will Gold Coast House Prices Drop

Aside from interstate migrants moving from other states to Queensland (specifically to the Gold Coast), locals or current residents in Queensland are also buying into the market.

Many of these residents are capitalising on the work-from-home setup of the pandemic era by investing in Gold Coast real estate and choosing to live where they can enjoy a work-life balance. 

Retirees visiting the Gold Coast are also seeing the appeal of living in the area, which is why many have decided to call it home. This was especially true when the uncertainty of the pandemic restricted international travel. 

But it’s not just retirees that are moving to Queensland, Andrew Henderson, the chairman of the Gold Coast REIQ Zone, states that people across all age groups are moving to the region, like younger demographics studying on the Gold Coast or looking for the property investment Gold Coast has to offer. 

The price increase for houses in Gold Coast created an affordability issue for potential home buyers and renters (as the rental market has gotten very tight, too). Finding cheap rentals in Gold Coast is harder than ever and in particular, cheap waterfront Gold Coast homes. Industry experts hope that new apartment developments will soften the staggering surge in property prices and bring forth a more positive Gold Coast house prices forecast for the immediate future. 

The Gold Coast property market in 2022

Will Gold Coast House Prices Drop

Will Gold Coast house prices drop soon? To answer the above question, here is an overview of the housing prices movement in the Gold Coast real estate market heading into the final quarter of the year 2022:

Type of PropertyMonthlyQuarterlyAnnualMedian Prices
All-1.9%-4.8%13.5%$867,542
Houses-2.5%-6.5%12.1%$1,032,755
*Source: Corelogic (Sept 2022)

The Gold Coast property market is cooling

The house prices in Gold Coast are far from their pre-Covid levels yet, but it’s a good sign for property buyers and investors that these numbers are trending lower. 

Industry experts claim that the trend will continue for at least the early 2023. If you’re wondering if Gold Coast house prices drop soon, it looks like it is finally starting to happen. 

As of September 2022, the national median for properties in Gold Coast fell 1.4% (up to 4.8% lower than its peak growth level). It is a long way from a bust or even a serious downturn for the real estate market in the region. 

However, it is entering a cooling phase. Home and property values are now falling at a rate faster than anywhere in the state of Queensland, or its neighbouring states. The same is true for the Sunshine Coast properties

Effect of rising interest rates

Interest rate hikes put the brakes on the housing market momentum in the Gold Coast. The interest rate hikes caused house sales to drop 15.7% in September 2022, which is the third month in a row house prices plummeted. 

The impact of the price drop of the houses in Gold Coast is also felt in the rental market. Almost every suburb in Gold Coast has reported that vacancies and average weekly rental costs are also beginning to drop. 

Best areas to invest in Gold Coast in 2022 and beyond

Will Gold Coast House Prices Drop

When house prices in Gold Coast surged in 2021, industry experts predicted that prices would slow in 2022, particularly in the latter half of the year. This prediction proved to be right on point with the recent development in the housing market. 

Affordability constraints and interest rate hikes were the critical factors in weakening the price growth, even resulting in a steady price drop. 

Therefore, property investors are already looking at the best markets to invest in as they foresee the real estate market’s impending recovery in a few years. 

Popular Gold Coast suburbs for investment

Experts agree that the best areas to begin your search for potential property investments are in the suburbs of Broadbeach/Burleigh Heads and Coolangatta. One of the reasons why these suburbs are worth investing in is that they are part of the future Gold Coast light rail route. 

As always, it is crucial to research the specific suburbs you’re looking to invest in. The key metrics to focus on are the rental yields, the days on the market (DOM), vacancy rates, and auction clearance rates, among others. It’s also important not to get caught up in the numbers and to look at the big picture.

Will Gold Coast house prices drop before they rise again?

Will Gold Coast House Prices Drop

If you are holding out on buying a property now, whether for your own home or investment, it’s best to not wait too long. The current housing prices might give rise to affordability constraints but these numbers could pale in comparison to the predicted house prices in 2030 Australia. 

Even with the increased interest rates, housing prices have bounced back recently, contributing to the exacerbation of the housing crisis.

According to experts, Sydney house prices are estimated to cost $1.8 million from their current price of $1.06 million, based on the same price growth rate in the past three decades. Apartment buyers can also expect a significant increase in 2030 with prices going up from $780,000 in 2022 to $1.26 million in 2030. The same price growth rate is predicted for the Gold Coast housing market, if not higher. 

Soho
Soho is your expert team in Australian real estate, offering an innovative platform for effortless property searches. With deep insights into buying, renting, and market trends, we guide you to make informed decisions, whether it's your first home or exploring new suburbs.
Share this article
soho-logo-Hoz-Light
Don’t waste time searching for a home. Let our AI do the work

Latest

Soho logo

Our AI match engine will match you with over 150,000+ properties and you can swipe away or shortlist easily. Making your home buying journey faster and easier 

Soho logo
Our AI match engine will match you with over 150,000+ properties and you can swipe away or shortlist easily. Making your home buying journey faster and easier.