Low property price window is ‘closing’

A LEADING property economist has warned the window for buying a Gold Coast property at lower prices is rapidly closing as the market rebounds from “the great correction”.

Falling land values and rising interest rates have slowed the property market from the highs of the Covid boom while mortgage stress levels have climbed.

But with population growth remaining steady as the development industry failing to keep pace on the Gold Coast, Ray White chief economist Nerida Conisbee said she expected Coast properties to remain at a premium.

“Population pressure is a big factor. With so many people still migrating to the Gold Coast, demand for housing is still high,” she said. “The window for purchasing a home at these low prices is closing.

“The low prices that we have seen will not last. Prices will start to rise again, so if you are looking to purchase, don’t let that window close on you.”

The latest Colliers Market Overview report, released on Thursday, revealed the Gold Coast has avoided the worst of the market correction, with the economy tipped to annually grow four per cent during the next three years, far outstripping the 1.5 per cent anticipated growth of the national economy.

According to the report, the city’s median house price has fallen to $925,000, down 1.5 per cent or $15,000 from the $940,000 at the height of the market in June 2022.

This compares to the 8.4 per cent decline recorded nationally between May and January this year by Corelogic’s national Daily Home Value Index.

More than 15,000 people are moving to the Gold Coast annually.

A new apartment essentials report by property consulting firm Urbis in February showed 100 projects have been launched across the Gold Coast in the past three years, containing 7760 new apartments. Currently there are around 5800 apartments under construction with around 3000 due to completion in 2023.

However, it warned the slowing market meant “new launch activity is expected to slow overall, which will further impact dwelling delivery in a market that is behind on dwelling targets, and indicating one of the tightest residential vacancy rates in the country.”

The low vacancy rate and high demand has seen rents increase 19 per cent nationally in the past year.

On the Gold Coast, rents have in creased by 16.9 per cent to a median of $725.