Gold Coast Property Market Remains Strong
The Gold Coast property market is defying a slowdown in population growth and continuing to be a ray of sunshine in real estate trends. The Gold Coast appears to have a downward trend in population compared to previous estimations. But the housing sector appears to remain robust.
The Gold Coast Shines
Colliers published a Gold Coast Market Overview, and data indicates a projected population figure of 915,611 by 2041, lower than the anticipated target of over one million. Even so, this shift in projections hasn’t significantly impacted the property market.
Why is Gold Coast property going strong despite a dip in population?
Experts like Steven King of Colliers suggest that the scale of future population projections is key. Because the Gold Coast is a maturing city, with high numbers of migration and new investment property projects down the pipeline, it’s in a very good position to continue enjoying high demand and unlikely to fall off a cliff in the medium to longer term.
Among the anticipated events is the city’s hosting of the 2032 Olympics, which means there will be transport and road expansion, and the development of a light rail system that will connect northern suburbs to the south and vice versa.
Another concrete reason why the Gold Coast is robust is the region remains an appealing destination for both domestic and international migrants, especially migrants from Sydney and Melbourne. In fact, the influx from these capital cities drives as much as 77% of the Gold Coast’s population increase.
Gold Coast Suburbs Expected to Grow
As outlined in the Colliers Market Overview, the Ormeau-Oxenford precinct within the city is projected to witness the lion’s share of forthcoming population expansion, accommodating an estimated 103,000 additional residents from 2021 to 2041.
“The anticipated growth will predominantly occur in areas like Coomera, Helensvale, and Hope Island, poised to experience the most substantial population surge,” the report highlighted.
At the same time, Gold Coast North is expected to welcome around 35,000 more Australians during the same period. Labrador and Biggera Waters are forecasted to bring the most growth.
King emphasized that the Gold Coast remains an important destination for home buyers and investors, citing limited property supply, robust tenant demand, and healthy rental rates as key factors for its appeal.
Residential Growth Seen More in Units
Internal migration means there’s a big demand for residential development on the Gold Coast. But the supply has to keep up with this surge of homebuyers and renters.
Queensland, for instance, is already grappling with a huge backlog of residential projects, as issues of construction costs, higher interest rates for project plans.
The impact of construction lags is particularly felt in large-scale projects – unit and townhouse approvals already outweigh house construction approvals. Data also showed that home seekers prefer newly introduced developments that provide better residential amenities over older generation buildings.
Recently launched apartments in premium locations are popular with investors. However, potential buyers are also cautious with new residential projects, ensuring that the developer has an established track record. Projects that are already making headway in construction look much more appealing than approved plans that haven’t commenced.
Interestingly, three major projects started as build-to-rent have switched to build-to-sell. This points to internal migrants, mostly Sydneysiders, homing in on the city’s natural landscapes and idyllic lifestyle.
Gold Coast maintains its glimmer when it comes to property. It’s the top pick for retirees and migrants from other capital cities like Sydney and Melbourne. Even with interest rate hikes, Gold Coast’s housing market has withstood without much downsizing and is predicted to be resilient in the coming years.
