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Suburbs up and down the Gold Coast have been among the nation\u2019s biggest price gainers over the past year, and while further growth is expected in 2022, some sub-regions have stronger potential for investment success than others.<\/p>\n
Suburbs up and down the Gold Coast have been among the nation\u2019s biggest price gainers over the past year,\u00a0and while further growth is expected in\u00a02022, some sub-regions have stronger potential for investment success than others.<\/p>\n
Price pressures on the Gold Coast are among some of the highest in the country, according to analysis by buyer’s agency InvestorKit, with home values across the region accelerating significantly since the start of the pandemic.<\/p>\n
Properties in the Broadbeach<\/a> to Burleigh<\/a> sub-region recorded a median house price increase of 38.2 per cent in the past year, followed by Coolangatta<\/a> at 21 per cent and Surfers Paradise<\/a> at 18.9 per cent.<\/p>\n InvestorKit founder and head of research Arjun Paliwal said he was expecting growth to continue in 2022, and be particularly strong in the first three to six months of the year, but he was not anticipating a repeat of the massive gains recorded in 2021.<\/p>\n \u201cI do see momentum continuing over the first two quarters of next year, however what is apparent is two key trends across some of these sub-regions,\u201d Mr Paliwal told Australian Property Investor Magazine<\/em>.<\/p>\n \u201cThose trends are a stabilisation of listing volumes, we aren\u2019t seeing a huge decline in listing volumes any more, they are ticking up, and we are seeing a peak that\u2019s been reached in terms of sales volumes.<\/p>\n \u201cWhen those things start to happen, we do see a slowdown because sales volumes are not able to grow much more, and with listings creeping up they will eventually catch up to each other.<\/p>\n \u201cHowever, right now, we are still anticipating the first quarter at minimum and potentially the second quarter of 2022 to still have some strong growth conditions, because all of these movements were done without much mobility in Queensland.\u201d<\/p>\n Mr Paliwal said he expected mobility to improve substantially as the Queensland border becomes more open as COVID vaccination rates reach targeted levels.<\/p>\n \u201cI don\u2019t think the relocation trends we are seeing are going to slow down any time soon,\u201d he said.<\/p>\n \u201cWhile some workers will have to go back to a sense of normality, the group of people who I don\u2019t think are going to go back to normalcy are those who are looking to move their retirement plans forward.<\/p>\n \u201cI think that creates even more pressure than any sort of working balance change.\u00a0<\/p>\n \u201cIt\u2019s those age groups and segments who are more cashed up than any other groups of Aussies, who are able to actually bring their retirement plans forward.\u00a0<\/p>\n \u201cThey are going to be the ones who are going to keep things ticking along, in my opinion.\u201d<\/p>\n While Mr Paliwal\u2019s expectations were for further capital growth on the Gold Coast, he said not all of the in-demand region\u2019s suburbs were strong picks for investors.<\/p>\n \u201cWhen we think of some of the areas that offer the greatest opportunity for investors, Nerang<\/a> was one of those sub-regions that stood out and the other one was Coolangatta<\/a>,\u201d Mr Paliwal said.<\/p>\n \u201cIt\u2019s just a combination of the building approvals in the pipeline, balanced with how much capital growth has happened over the last 12 months versus what we think could be in the tank, and the balance of the rental market alongside the sales market strength.<\/p>\n \u201cNerang and Coolangatta are more well balanced across all of those factors, whereas some of the other markets suchs as Ormeau<\/a>–Oxenford<\/a> have a lot of housing in the pipeline.<\/p>\n \u201cSome of the absolute coastal suburbs like Broadbeach<\/a> and Burleigh<\/a> have gained huge momentum over 2021, so it just makes those areas a little bit harder for the mass market to attain.\u201d<\/p>\n In terms of downside risks, Mr Paliwal identified two factors that investors should be wary of.<\/p>\n \u201cNumber one is treating all asset classes the same,\u201d he said.<\/p>\n \u201cPeople are going to look at the Gold Coast, think of the location, realise the houses aren\u2019t as cheap as everyone thinks they are when people consider Queensland, and they will make the mistake of jumping into apartments\u00a0 or units just because they want to ride the wave.\u00a0<\/p>\n \u201cThe second downside risk is people who are looking to buy an investment property on the Gold Coast are looking in their rear-view mirror of 20 per cent to 30 per cent growth and thinking that\u2019s what lies ahead.\u00a0<\/p>\n \u201cIt\u2019s not normal for markets to do 20 per cent to 30 per cent growth in a year, and that\u2019s not to say it can\u2019t happen next year, but the main thing is that after missing out investors shouldn\u2019t go growth chasing in an area that\u2019s just had that, thinking it will repeat itself.\u201d<\/p>\n Gold Coast sub-region market analysis<\/strong><\/p>\n Broadbeach – Burleigh<\/strong><\/p>\n House prices in Broadbeach<\/a> – Burleigh<\/a> experienced the highest annual growth in the Gold Coast in the 12 months to August 2021, at 38.2 per cent, while units grew by 15.7 per cent. With the property market remaining hot, the average days on market for sales has declined 39.4 per cent for houses and 25.4 per cent for units. The pressure within the rental market has led to a strong rise in median rents over the last year, up 15.6 per cent for houses, and 13.3 per cent for units annually.\u00a0<\/p>\n Coolangatta<\/strong><\/p>\n Median house prices in Coolangatta<\/a> rose 21 per cent over the 12 months to August, while units have grown by 16.9 per cent. The pressure within the rental market has led to a strong rise in median rents, too, up 10.4 per cent for houses, and 10 per cent for units annually. Investors can expect a medium-level rental yield of more than 3.5 per cent for both houses and units in Coolangatta, which are relatively well placed in the current low-rate environment.\u00a0<\/p>\n Gold Coast – North<\/strong><\/p>\n Median house prices in Gold Coast – North increased 11.2 per cent while units grew just 5.6 per cent in the 12 months to August 2021. The average number of monthly listings for lease has been declining over the last 15 months, down 21.1 per cent and 11.3 per cent, respectively, for houses and units over the past year – indicating a high-pressure rental market. The vacancy rate is now sitting well below 1 per cent.\u00a0<\/p>\n Nerang<\/strong><\/p>\n Median house prices in Nerang<\/a> increased 18.1 per cent while units have grown 13.1 per cent this year. Pressure within the rental market has led to a steady rise in median rents, with houses up 10 per cent and units up 4.7 per cent. Investors can expect house rental yields of more than 4 per cent while units can command a high rental yield of more than 5 per cent.\u00a0<\/p>\n Ormeau – Oxenford<\/strong><\/p>\n Median house prices in Ormeau<\/a> – Oxenford<\/a> experienced one of the lowest increases in the region, at 13.7 per cent, but capital growth still remains strong, overall. Meanwhile, unit prices increased by just 4.3 per cent. Increased rental demand in the area has led to a rise in median rents over the last year, up 6.5 per cent for houses and 7.5 per cent for units.<\/p>\n Robina<\/strong><\/p>\n Robina<\/a>\u2019s median house prices have achieved a 13.4 per cent annual growth while units have grown 6.5 per cent annually. With rental market pressure rising, investors can expect a healthy house rental yield of more than 4 per cent and a high unit rental yield of more than 5 per cent. The data reveals yields are reducing slightly due to the heavy uplift in prices; however, rents are also rising steadily.\u00a0<\/p>\n Southport<\/strong><\/p>\n Over the past year, median house prices in Southport<\/a> have been rising, with house prices increasing 14.1 per cent annually and units growing 8.9 per cent annually. Pressure within the rental market has led to a steady rise in median rents over the last year, up 10.1 per cent for houses, and 7.5 per cent for units annually. Investors can expect rental yields above 4 per cent.\u00a0<\/p>\n Surfers Paradise<\/strong><\/p>\n