Property values drop on the Coast

September quarter falls tempered by positive spring selling season

THE spring selling season has helped soften the fall of home values on the Gold Coast, a new report reveals. The latest PropTrack Home Price Index reveals Glitter Strip values fell 1.25 per cent over the September quarter.

Despite the recent falls, Gold Coast values increased 11.69 per cent over 12 months to a median of $921,000 and are up a staggering 52 per cent from pre-pandemic values.

“It’s looking like spring activity will be quite good this year but we’re still expecting property prices to slide lower in coming months,” said PropTrack Senior Economist and report author Paul Ryan.

“Interest rates are going up but economic growth is strong; a lot of people are at that stage where they feel secure in their job.

“It’s likely Brisbane and the Gold Coast will be more resilient than other parts of the country.”

He said a lot of Gold Coast buyers were already homeowners looking to upgrade.

“They often have huge amounts of equity and are ready to upgrade and that’s why we’re seeing strong conditions,” he said.

“The price falls we are seeing are not at all near those enormous gains.”

REIQ Gold Coast chairman Andrew Henderson said the small price adjustment showed the strength of the Gold Coast property market.

“In reality you can’t have a market that continues double digit growth year on year,” Mr Henderson said.

“It’s unsustainable and you’re potentially leading to a bigger correction if that continued.

“What we’re seeing is very much a minor adjustment in pricing which is much more controlled and I feel necessary to save a bigger market correction occurring.”

Mr Henderson said interest rate rises and cost of living factors were impacting property values.

“Interest rates are one of the major factors in reducing people’s borrowing power and the spare cashflow that they previously had,” he said.

“The general cost of living increase has also brought people’s spending into consideration.”

Gold Coast values increased 11.69 per cent over 12 months to a median of $921,000.