House prices beat slump

HOMEOWNERS can breathe a sigh of relief as Gold Coast house values return to prices seen before the national property market slump.

And industry players expect prices to continue to rise with more people moving to the city for its enviable lifestyle.

Latest CoreLogic data to August shows the median house price jumped to $659,000 for the first time since February, when it briefly hit $660,000 then gradually declined in the lead-up to the federal election.

The only other time it has reached $660,000 in the past nine years was between August and December last year.

REIQ Gold Coast zone chairman Andrew Henderson was confident house prices would keep climbing, especially since back yards remained a big part of the Australian lifestyle.

“I can’t see that changing,” he said.

“The Gold Coast is one of those places that’s always going to grow as people are always going to move here.”

He said a lack of supply to meet current demand and limited land to build would also bump prices up, but he did not think it would push people out of the market.

“On a national scale, I think we’re still relatively affordable,” he said.

“We’ve still got plenty of townhouses and apartments and we’ve still got the opportunity to build up.”

Harcourts Coastal managing director Dane Atherton said the market was showing signs of strong recovery while shedding a reputation for seasonal sales periods.

He said the climate was responsible for its year-round consistency.

“We have selling seasons but they are nowhere near as magnified as Melbourne,” he said.

“You can sell the Gold Coast lifestyle in June because (the weather) is not as bitter.”

Ray White Broadbeach principal Mitch Palmer said the data reflected what was happening on the ground.

“Money has never been cheaper so we’re definitely seeing buyer activity increase,” he said. “The prices being achieved are healthy.”

While price growth was expected, Mr Palmer did not think it would climb as far or for as long as it has in previous years.