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CoreLogic’s Regional Market Update, released today, shows Gold Coast median house prices climbed 6.9 per cent to $590,934 in 2016 while units increased 5.5 per cent to $388,392.
It was up on pre-GFC highs when house prices reached $530,000 in 2007 before slumping to $485,000 in 2009 as a result of the global financial crisis. The median house price has steadily recovered since.
It’s also the best result for Queensland, with runner-up, the Sunshine Coast, only managing a 4.5 per cent house increase and 3 per cent for units.
In Brisbane, house prices increased by 4 per cent while unit prices dropped 0.2 per cent.
House and unit values across Townsville fell 3.2 per cent and 3.8 per cent respectively, while values across Cairns rose at 0.9 per cent for houses and were unchanged for units.
CoreLogic research analyst Cameron Kusher predicted Sydney and Melbourne buyers would drive more growth on the Gold Coast this year.
“They like the Gold Coast, they are cashed up and they have a lot of equity in their property so they will probably start to look for more holiday homes in the area,” he said.
“You are also seeing interstate migration into Queensland starting to pick up slowly, and that will be a further driver of the market.
“We definitely think that values will continue to rise in 2017 and obviously in the lead up to the Commonwealth Games.”
While the number of house sales dropped 10 per cent to just over 19,000, properties sold faster — averaging 72 days in 2016, instead of 84 days the year before.
“There are less sales, but you see the values are rising,” Mr Kusher said. “That’s pretty clear that there is demand coming back into the market. When you see time-on-market falling it is also really indicative of an improving housing market.”
REIQ Gold Coast zone chairman John Newlands tipped the median house price would soon hit $600,000.
“I think the market has still got a few leaps to it,” he said. “The interstate market is performing really well and as a result of that we will start to see money flow through and more opportunities here.
“The Gold Coast has jobs, construction and tourism, and when paired with a low-interest-rate environment our market will continue to record gradual growth.”
Gold Coast homeowners who held off selling their properties a few years ago, have now decided to take advantage of buoyant market conditions.