Gold Coast apartment prices trending upwards

Gold Coast apartment prices are tipped to record increases across the balance of 2024, underpinned by the continued tight rental market, moderate supply and likely interest rate cuts later in the year.

The latest research by leading property advisory groups says the national trend of buyers opting for apartments over houses is especially prevalent on the Gold Coast, where median unit prices have outperformed houses in many suburbs.

Ongoing challenges in the construction industry are making it more difficult for new highrise projects to get off the ground, contributing to an increase in the number of more boutique developments favoured by owner occupiers and interstate investors.

Chapter Two’s Holm at Rainbow Bay project is a 12-level, 87-unit development recently named by Urbis as the number one selling building south of Burleigh Heads.

New research by Colliers has found average Gold Coast apartment prices have reached a record high, breaking the $1.6 million barrier amid continuing supply shortages.

It said the dramatic pricing was reflected in a surge of interest from owner-occupiers, who accounted for around 55% of total sales in the December quarter.

JLL’s latest apartment market overview said demand remained robust for smaller high-end apartment projects, predicting overall supply would remain moderate over the next few years and sit well below underlying housing demand.

“This means little relief for the tight rental market, but it should support apartment prices,” it said.

The strength of the Gold Coast market has also been confirmed by its current top 10 ranking in Hotspotting’s National Top 10 Best Buys report.

In a recent article, hotspotting.com.au founder Terry Ryder said factors putting upward pressure on prices and rents on the Gold Coast included strong population growth, a desirable lifestyle, a shortage of dwellings and a major national trend of more buyers favouring attached dwellings.

“Lifestyle buyers, downsizing couples, investors and others are choosing attached dwellings for the low-maintenance, lock-up-and-leave lifestyle, for relative affordability, for high rental yields and for the views,” he said.

Charter Keck Cramer is also positive about the Gold Coast market, according to its State of the Market report for H2 2023.

“After considering all the data, our view is that the market will continue improving over 2024, especially when rates begin to be cut,” the report said.

“Given rate rises and diminished purchasing capacity for buyers, it is anticipated that additional buyer demand will be driven into the unit market, which stands to support upside price growth potential in many locations in Gold Coast.”

Finally, CoreLogic Research Director Tim Lawless told a recent Property Council of Australia event on the Gold Coast that the region’s population growth projections meant there would be no let-up in demand.

“The raw numbers of people coming to the Gold Coast over the next 10 years, let alone from now to 2046, is absolutely huge,” he said. “It’s going to be the biggest growth market in terms of population … there’s no other market that has stronger fundamentals than this.”

Find out more about Holm here.