A word from our clients
The Gold Coast’s biggest boom suburbs of the past year
Posted: 7th December 2021
Posted in: Media
We’re all aware of the pandemic’s impact on the Gold Coast property market. But what exactly does that mean for you in your suburb, and what can we expect in the near future as the economy begins to piece itself back together? Here at J.W Prestige Agents we’ve done some research and found some answers for the biggest boom suburb.
Where are we at now?
According to Corelogic, Gold Coast house prices have risen around 29% over the past twelve months. Price growth appeared to peak in the first quarter of this year, when the marked surged 3.5% in March. Right now, the average price of a Gold Coast house is around $887,000. It’s a similar story with unit prices, which increased around 23% over the past year. Unlike housing demand, which seemed to spike earlier this year, price growth in the unit market continues to trend upwards. The median unit price is now around $545,000.
Which suburbs have boomed?
Over the past eighteen months, the entire Gold Coast has experienced an increase in property prices and the biggest boom suburb, however some locations have performed better than others. Some standout suburbs include the following.
Beachside Miami experienced a massive surge in prices, rising by a huge 39 per cent from around mid-2020 to mid-2021.
Bundall was one of the few standout suburbs that isn’t located close to the beach, with prices jumping approximately 33 per cent over the same period.
Popular Burleigh Heads was near the top of the list, as was Tallebudgera, with both locations increasing by around 31 per cent. Coolangatta which experienced a difficult year amid border closures, was another standout, with prices climbing by nearly 30 per cent. Another boom suburb was the centrally located Mermaid Waters, with strong growth raising prices by around 29 per cent. The southern beachside suburb of Tugun continued its rise in popularity, with property value climbing by 24 per cent.
Property prices in Mermaid Beach also surged during the pandemic, increasing by approximately 18 per cent. Carrara, which often flies under the radar in most discussions on Gold Coast property, rose by about 15 per cent.
Why has the Gold Coast boomed?
The COVID-19 pandemic has been an extraordinary case study of the Australian property market. In early 2020 as the pandemic was just getting started, many top economists were predicting declines of up to 10 and 20 per cent of property values.
Many Gold Coast property experts point to unprecedented demand coming from interstate buyers from Sydney and Melbourne. It is said that these buyers who battle high cost of living, expensive real estate and long commute times have used the pandemic as a period to re-evaluate their lives and are now looking for something better.
Astute local experts have also noted the strong surge in prices along the future southern route of the Gold Coast light rail project, which will draw more people to these areas, allowing greater development. Economists also point to the fact that the pandemic has increased people’s savings to very high levels, which, combined with the record low interest rates we now have, has created a ripe environment for investors looking to buy in to the market.
What can we expect going forward?
Well, experts are reluctant to commit to any bold predictions given the amount of uncertainty ahead. However, when looking at the broader national market, both CommSec and ANZ predict Australian house price growth to slow to about 6% in 2022.
But when it comes to the thriving interest in Gold Coast living coming from our biggest cities, it’s hard to see popularity in the Gold Coast slowing anytime soon.