‘Unprecedented demand’ drives Gold Coast sales boom

New property sales have surged by almost 100 per cent on the Gold Coast, according to recent property data. Industry experts say the figures are the most significant recorded in more than eight years, with intrastate-based Queenslanders driving the surge, followed by Victorians. A local property researcher says the "unprecedented demand" has led to a stock shortage, with the rate of sales expected to remain for "several years".

Gold Coast property research and real estate advisory firm Urbis recently released its quarterly report looking into the new apartment and housing market for the first quarter of 2021. Director Matthew Schneider said the results were significant, nearly doubling to more than 700 sales compared to the previous quarter. "In the first quarter of 2021, we saw a total of 742 new apartments sold in the Gold Coast marketplace," Mr Schneider said. "That's the highest number that we've seen since the service has been doing this report (since about the end of 2013)". "Over the course of the period between 2021 and back to 2013, we've really seen somewhere between 300 and 500 apartments transact each quarter. So, to have results as high as 742 in the first quarter of 2021 is a significant increase on what we're seeing over that last period … [it has] almost doubled the volume over that period." 

Mr Schneider said the majority of sales came from within Queensland, as well as from the south. "There's a strong representation of people moving from other parts of Queensland to the Gold Coast and [from] other regions, " he said. "There is a big proportion of interstate migration, particularly out of Victoria, as people move north, driven by lifestyle opportunities. "But, certainly, the relative value of property on the Gold Coast, compared to capital cities, is a really strong feature. Mr Schneider said the biggest driving forces were the change in buyer profile, from investors to owner-occupiers, and locals downsizing family homes to townhouses and apartments. "One of the pleasing things is we are seeing this level of activity driven by relatively fundamental forces things, [such as] low interest rates … good value here on the Gold Coast, good quality products, access to jobs and schools."

Property researcher Colleen Coyne said she did not believe the surge in prices could continue at the rate it had, but sales growth could continue. "Back in April, Core Logic was reporting for the March quarter a 23 per cent gain on average property prices over the year to March 2021," she said. "I do feel like [that level of price rise is] unsustainable … 23 per cent in a year." "Maybe that can continue for a year, or something like, that but, after that, surely supply [needs to] catch up. So, perhaps the level of price increases will diminish in 12 months but I think the momentum that Queensland and the Gold Coast has got going is going to continue for several years."

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