Housing stability still ‘three years off’

SURGING Gold Coast property prices will stabilise within three years, according to the city’s leading real estate figures, as unit sales continue to surge.

While units and houses are selling out before developers can even take them to the market, buyers have been warned the current red-hot conditions will not last forever.

Ray White Surfers Paradise head Andrew Bell said the Gold Coast was in a “solid position” but warned there were concerns about the impact of inflation on the market.

“We are really starting to see early concerns about inflation, which would probably cause regulators to tighten up on financing to curtail the price growth in the market,” he said.

“We are also seeing, independent of the Reserve Bank, that money markets will push interest rates up, which will undoubtedly have an impact on the market but this is a healthy thing.

“You cannot have year-onyear 30-40 per cent growth, it’s just not sustainable or supportable by wage growth.

“Without a wildcard, I think we will see a gradual slowing of the real estate industry, which will cause it to level out.”

Properties on the coastal strip are the most popular among buyers but agents said the increasingly tight levels of supply meant many were being forced to buy whatever was available.

Real estate figure Amir Mian said he expected the backbone of the property market to remain strong for years to come.

Aside from interest from locals and interstate, inquiries from Australians trapped overseas looking for a place to live once they return were increasing.

Leading prestige property agent Michael Kollosche said supply levels in unit development remained tight but he expected demand to remain strong.

“The interest is strong but the supply is pretty tight,” he said.

“The rising cash rate will soften the prices and level out the market, but this will take three or four years to occur.”