The Gold Coast property market was expected to follow in the footsteps of Sydney and Melbourne this year but instead defied expectations and proved it is a leader.
Herron Todd White’s Year in Review found house prices remained stable and the market picked up dramatically in spring despite grim predictions at the start of the year.
The leading independent property valuation and advisory company dubbed the central Gold Coast as the city’s shining light among dull conditions nationally.
“At the beginning of the year, a few questions were posed and some market predictions were made concerning the central areas of the Gold Coast,” the report read.
“Overall, we anticipated the local market to continue to soften throughout 2019.
“After the first two quarters of this year, there were signs of the market cooling but generally speaking it remained stable … however, there has been a noticeable change in the market particularly over the September (and) October period and it must be admitted, we did not expect to see such encouraging signs at the moment.”
Real Estate Institute of Queensland Gold Coast zone chairman Andrew Henderson said there were a few factors that put a pep in the step of buyers.
“Everything post (federal) election is where the major turnaround started to happen and more buyers got confidence in the market,” he said.
“APRA reduced some of their red tap making it easier to get finance and the combination with interest rates falling as well, made purchasing property a very attractive proposition again.”
Burleigh Waters, Mermaid Waters and Broadbeach Waters were some of the best performers despite being thought to have reached peak last year.
“The central Gold Coast offers a very convenient lifestyle and owner occupiers have been a strong buyer in that spring market and that will continue into our summer market as well,” he said.
“They are highly desirable areas to live in and as the urban renewal continues in those areas prices will continue to rise.”
It was a different story for the city’s units, which have hit the bottom of the market due to investors dropping off significantly, according to the report.
Surfers Paradise units and activity for apartments in low-rise building across Southport, Labrador and Hope Island felt the brunt the most, but have already started to show signs of recovery.
“Analysis we have conducted has shown that values for one and two-bedroom units have weakened significantly,” the report read.
“It appears that this segment has now stabilised, albeit at levels 10 to 15 per cent lower than say 2017.
“The values of three and four-bedroom units generally appear to have eased or, at best, maintained their values.”
Mr Henderson the unit market worked in cycles and the record-low interest rates would be a turning point for investors to get back into the market.