Issue 5 | Thursday 9 March 2023 | How’s this for some interesting facts?
I am excited to provide you with another update on the state of the Gold Coast real estate market as we pass the one-sixth milestone of the year and wave goodbye to the stunning summer that was.
Despite the sharp rise in interest rates and media attention, the market has not slowed down significantly. In fact, we are all surprised by the resilience of the market, which is great news for property owners and investors.
This fortnight we look at the results of recent research from Ray White, who has invested significantly in industry leading research with a team of nearly 20 experts led by Nerida Conisbee, Australia’s leading economist in the field of real estate. The research provides invaluable insights into the market and the outlook for the balance of 2023.
The graph below shows the decline in Australian capital city house prices since the peak of the market in March last year. While Sydney and Melbourne have seen significant declines at 10.9% and 9%, respectively, the Gold Coast has defied that trend and has experienced negligible decline. This is impressive considering that property values on the Gold Coast rose by up to 53% during the boom years of 2020 and 2021 so giving back just 4% over a year is negligible.
Two factors have contributed to the resilience of the Gold Coast real estate market. First, we continue to see strong migration from other parts of Australia to the Gold Coast, which creates ongoing demand. Other major city centers like Sydney and Melbourne have recorded a dip in migration numbers, lowering the demand and contributing to those price declines.
Second, there has been a continuous decline in the number of new listings coming to the market over the past three months. This means that there is greater competition for the properties that are available, leading to higher demand and strong sales prices.
The Gold Coast real estate market is poised to be one of the best performing markets in Australia this year. Even with the potential wild cards and X factors, such as a significant economic downturn or higher interest rates, the current research suggests that the market will remain strong.
Finally, I would like to invite you to be a part of the Business Meets Sports Luncheon next Friday 17th March. We have a big crowd expected, and Bruce Mathieson, one of the most successful businessmen in Australia, will be sharing his secrets to success. We will also hear from champion sportspeople and a comedian, making it an enjoyable and informative afternoon.
Thank you for your time, and I look forward to providing you with further updates in a fortnight’s time.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group