Issue 7 | Thursday 6 April 2023 | Gold Coast Continues to Shine Despite National Downturn
With over 40 years of experience in the real estate industry, I can confidently say that the market has never received as much daily attention as it does presently. Thanks to technology, real-time information is more readily available and widely discussed than ever before. While we measure more aspects of life in general, this trend is particularly evident in the real estate industry. Furthermore, there is now more government intervention than in the past, with active involvement from the reserve bank and an abundance of information provided by the media. Given the current housing crisis, it’s easy to see why so much attention is directed towards the real estate market.
However, all the information can be overwhelming and confusing, as one small piece of news, such as a rise in interest rates, doesn’t give us the whole picture of the market. Even discussions surrounding falling real estate prices can be misleading as they may not be relevant to many segments of the population in Australia. Therefore, I wanted to provide a quick snapshot of the real estate market on the Gold Coast.
Firstly, the graph below shows that the Gold Coast is one of the strongest performing markets in the country, with house prices increasing over the past five years.
Secondly, the following graph illustrates that every city in the country except Adelaide and the Gold Coast has experienced year-on-year price declines. Although the Gold Coast suffered a slight price decline, it was negligible compared to other cities.
Thirdly, the next graph depicts that while there were nominal declines in house and unit prices, prices have actually increased slightly in recent months.
However, it’s important to note that these graphs are based on median pricing, which can be influenced by increased activity in one price segment or another. For example, while there was significant activity in the $2 million+ bracket over recent years, the strongest activity at present is in the $800,000-$1.8 million price bracket.
The media has always relied on auctions to measure real estate activity, with a fixation on success on auction day. However, as an industry, we respectfully decline the highest offer at auction when we know a better price could be achieved in the days following. It’s also worth noting that a high number of sales occur in the seven days following auction day. Even using the media’s measure, real estate activity around the country is nothing short of extraordinary at present, with huge numbers of people turning up for open homes across the country during March. For instance, one of our properties had 37 attendees at the open home last week, and during the last weekend of March, Sydney recorded a 70% success rate on auction day.
Ray White, who auctions more properties in the country than anyone else, and are regarded as the country’s best auctioneers, reported a 75% success rate. Our own Ray White Surfers Paradise recorded an incredible 87% success rate at our March in-room auction, and on average, there were 4.8 bidders for each auction property.
Despite reports in the media of falling property prices and 10 consecutive interest rate rises turning buyers away from the market, the reality is that everyone needs a roof over their head. With rental properties in short supply, many people are being forced to commit to a real estate purchase, even if it means buying a lesser property. While we may see more properties come on the market as the year progresses, there is every reason to believe that prices will vary throughout the country, with some regions experiencing significant price falls and others holding firm. In my opinion, the Gold Coast is in an excellent position.
As we conclude the past two weeks, I want to express my genuine appreciation to everyone who attended our Business meets Sports luncheon the week before last. It was an unforgettable event with a record turnout, and I am amazed by the incredible feedback we received. The speakers were absolutely captivating, and the room was filled with positive energy and camaraderie. Our comedian was a hit, and his performance had everyone in stitches.
Thanks to the tremendous support of our community, we are able to donate approximately $75,000 worth of the latest rescue equipment for our beach. Our goal at Ray White Surfers Paradise has always been to ensure that our beach is the safest in the country, especially as we’ve witnessed numerous tragic deaths in our waterways and on our beaches this year. This equipment will go a long way in keeping both locals and tourists safe. We’re incredibly grateful to everyone who attended and supported this wonderful cause. Once again, thank you from the bottom of our hearts!
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group