The Gold Coast has always been a favorite getaway in Australia, known for its beautiful beaches, lively atmosphere, and impressive skyscrapers. It was the place where people flocked for sun, surf, and fun. This combination made it a hotspot for investors, with many buying apartments for vacations or rental income. However, this also led to a “boom-bust” reputation for the market.
Caitlin Rosenboom, who oversees projects for Ray White on the Gold Coast, explains that many things affect the property market here, often beyond local control. “The Gold Coast has historically been a holiday destination, so apartments were mainly geared towards holidaymakers,” she says. “When economic troubles hit, like during the Global Financial Crisis (GFC), the Gold Coast suffered more than other regions. People holding vacation homes were the first to sell in hard times, leading to a flood of properties on the market and pushing prices down.”
Data from Ray White showed that house prices fell by about nine percent from 2010 to 2011 due to the GFC, a rough patch that mirrored broader economic struggles. However, things took a turn for the better after that. Between 2012 and the end of 2020, house prices skyrocketed by over 56%, with only a minor dip in 2018. Units experienced a similar growth, albeit at a slower pace of about 30%.
Rosenboom points out that the Gold Coast has matured significantly over the last decade. “It’s no longer just a vacation spot; it has become attractive for long-term living due to improved infrastructure and larger apartments,” she notes.
When the COVID-19 pandemic hit in 2020, many feared a crash like the one seen in the GFC. Surprisingly, the opposite happened. The Queensland Government’s approach to managing the pandemic allowed Gold Coast residents to continue enjoying life, unlike those in Melbourne and Sydney. This led many people from the southern capitals to migrate north, seeking a lifestyle change.
In just one year, from June 2022 to June 2023, the Gold Coast welcomed nearly 20,000 new residents, making up 13% of all migration to Queensland. Properties were in high demand, with new apartments selling out almost as soon as they were listed. Prices rose dramatically, driven by this surge in demand.
Despite concerns about the market’s stability with the reopening of borders and a return to in-office work, growth continued throughout 2023 and into 2024. Prices for houses and units both jumped by around 57% over just four years. Rosenboom accurately describes the Gold Coast now as a “lifestyle destination.”
Local amenities have greatly improved, and the housing market has shifted from being dominated by holiday rentals to a focus on owner-occupiers. High-quality developments like ARC Residences in Surfers Paradise showcase this change, offering luxury features that attract diverse buyers, from locals to newcomers from Sydney.
Experts like Ray White Senior Economist Nerida Conisbee echo these positive sentiments. She highlights that the economic stability, combined with a growing population and limited land, is driving demand. However, this growth also puts pressure on housing, stressing the need for higher-density developments to accommodate newcomers.
The Gold Coast is not just bouncing back; it’s leaping forward, promising a vibrant future fueled by tourism, a robust lifestyle appeal, and major events like the upcoming Brisbane 2032 Summer Olympics. The changes here reflect a dynamic shift towards a population that values not just a place to visit, but a place to truly call home.
Check out this related article: Discover How a Sedentary Lifestyle Affects Your Heart Health: Insights from Dr. Sharma
Source link