Hysteria eases but market still strong
SOMETHING has changed in the Gold Coast property market in recent weeks.
Dare I say that the unfettered buying hysteria that has been sweeping the Coast since COVID-19 restrictions were lifted has begun to dissipate – not a lot, but a little.
Undoubtedly we are still in one of the most buoyant markets the Coast has experienced in decades, a market where house prices continue to eclipse record sales, and where demand still outstrips supply by up to 50 per cent, according to some agents.
Last week in Paradise Waters, 94 Admiralty Drive sold for $6.98m through Karen Pirie of Amir Prestige. It is among the top sales of 2021.
In Sorrento, two Bayden Goddard-designed properties transacted for $5m each – No.28 Kookaburra Court, sold through Michael Kollosche and Simon Worthington of Kollosche, and 12a Freyburg St, marketed by Charlon Delos Angeles and Marc Keswell of Amir Prestige.
So don’t get me wrong, the market is still red hot, there’s just a mild breeze blowing through.
Figures released by REA in its May Housing Indicators report show my instincts may not be entirely misguided.
Based on the 12 million people who search website realestate.com.au each month, REA data shows that while search activity in April was up 46.3 per cent relative to a year ago, it was down 8.4 per cent from the historic high of recent weeks.
The typical number of days a property is staying on the market is 38, up from 34 in March, but still way down on the 52 days a year ago.
REA’s report author Cameron Kusher said an increase in the supply of new stock available for sale coupled with a drop in search activity and sales volumes has resulted in slowing demand (based on views per listing).
This suggested the next wave of potential buyers might not be as large as what we had seen early in 2021.
“Preliminary weekly sales volumes are still significantly higher than they were a year ago but they have not yet returned to their pre-Easter high and look unlikely to do so before spring,” Mr Kusher said.
“There are fewer firsthome buyers entering the market as government assistance grants peter out.
“With HomeBuilder coming to an end, inquiry from first-home buyers continues to fade.”
Yet investor inquiry has risen, indicating a return to the market for this buyer group, which has been relatively non-existent since the start of COVID.
“Investor inquiry continues to grow and is now 84.2 per cent higher than last year,” Mr Kusher said.
Harcourts Coastal agent Glenys Pitkin, who focuses on the northern suburbs, said that, in some ways, the Gold Coast had become a victim of its own success.
“The market has become so hot it has almost worked against us,” Ms Pitkin said.
“There are many people who would consider moving but they have nowhere to go.
“If people can make money on a move, they’ll do it, otherwise they’re staying put, which means stock remains low and prices continue to rise.”
In the south, Madonna Delaney, who operates her own agency, said she also felt the market was changing.
“It hasn’t slowed but that freneticism that we saw at the beginning of the year has gone,” she said.