Buying frenzy eases but market is still hot

THE Gold Coast property market remains hot, despite coming off the boil from last year’s sizzling gains.

Corelogic’s first quarter 2022 Home Value Index shows only six suburbs notched double-digit growth in the first three months of this year.

Although strong, it’s a steep drop from the December quarter in which house prices were up at least 10 per cent in 19 suburbs.

Pacific Pines was the quarter’s top performer, up 11.3 per cent to a median of $902,180.

Once a tenants’ haven, prices in the northern growth suburb soared as owner-occupiers snapped up properties previously held by investors.

Sales specialist Tim Wolff, of LJ Hooker Pacific Pines, said about 25 per cent of houses in the suburb were investorowned, down from about 40 per cent pre-pandemic.

Young professionals and families chose Pacific Pines for its newer housing profile, inclusive community and convenient access to amenities.

Mr Wolff said the housing spectrum ranged from family homes on large, elevated blocks, priced between $1-2m, to townhouses under $550,000.

“We’ve got fantastic capital growth now which is great, but we’ve also got a huge shortage of rental properties,” he said.

“A number of the properties coming on the market were rental stock, but a lot of investors are now priced out of the area and we are seeing families, single parents as well as first-home buyers move in.

“That’s obviously displacing those families that were renting, who have children in school here, and are now trying to get into somewhere else.”

Molendinar was also in front for the quarter, up 10.7 per cent to a median $959,773.

Growth was as strong in Highland Park (up 10.7 per cent) and Worongary (10.5 per cent) – suburbs earmarked for major new housing development Skyridge.

In contrast, values cooled along the beachside strip.

Mermaid Beach maintained its mantle for strongest annual price growth, up 44.5 per cent to $2.726m. But the March snapshot shows 8.7 per cent growth, down from 11.2 per cent in December.

Likewise, Palm Beach was up 6.6 per cent this quarter, but down from 11.7 per cent.

Gold Coast Mortgage Broker’s Adam Hall said inquiry had halved since Christmas as the pandemic’s frenzied activity by interstate buyers eased and local buyers adjusted price expectations to meet the market.

“Our office had become a little fatigued doing pre-approvals for loans that didn’t proceed, but over the last six months our local buyers have finally swallowed that bitter pill on price,” Mr Hall said.

“I still think there’s some real competition in the market. It hasn’t turned to be a buyers’ market at all yet.

“I’m well aware that interest rates are as low as they’ve ever been, and the next frontier of that easing of inquiry will come down to affordability and what that adjustment is going to be like after the first rate rise.”

Statewide, the home value index showed gains of two per cent in March across houses and units.