The holiday beach spots where prices are tipped to push past $1m
- By Peter Gordon
- •
- 18 Jan, 2022
We hope that you had a wonderful Christmas & New Year and managed some time spent with loved ones.
We're back in the office and look forward to another year of meeting some of you for the first time, as well as continuing to work with our existing clients to mentor you through everything to do with the property investment market. To kick the year off, here is an article on the changing face of the QLD property market and how and why it is now one of the most highly sort after markets in Australia.
The booming lifestyle property markets of Queensland’s Gold Coast, Sunshine Coast and the Richmond-Tweed region of northern NSW are all set to pass the $1 million median price for detached houses by March, according to Australia’s largest real estate agency.
Ray White chief economist Nerida Conisbee said all three were star performers last year, with prices rising by between 35 per cent 47 per cent, and expected this momentum to be sustained in 2022.
She said key drivers included interstate migration from Sydney and Melbourne, a trend that would likely increase on the Gold Coast and Sunshine Coast after the Queensland border re-opened.
Work-from-home is also motivating land-locked residents in nearby Brisbane, who have traditionally owned holiday houses in all three regions, to take advantage of a vibrant market in the state capital and move permanently.
Ms Conisbee said the Gold Coast, the largest of these markets, was in the middle of fundamental change.
“There’s just a lot of people moving up there at the moment, and it’s no longer a boom-bust town,” Ms Conisbee said.
“Historically, it’s been up and down, a bit like Perth, but it’s grown and become more of a mixed economy, not so reliant on tourism, and is starting to show more stability with pricing.”
Passing the $1 million median
Citing CoreLogic figures to the end of November, she said the median detached home price had reached $939,000 on the Gold Coast; $956,000 in the Richmond-Tweed region, which includes Byron Bay; and $968,000 on the Sunshine Coast, north of Brisbane.
Based on average monthly price growth of 2 per cent, she expects all will exceed a $1 million median price for houses by March.
The comparable median in Sydney is $1.38 million, while Canberra breached the seven figure mark late last year, reaching $1.07 million, as did the Illawarra region, south of Sydney, where the median is now $1.01 million. Melbourne’s median is $980,000.
She said the coastal lifestyle markets and also Brisbane – where detached housing prices are still relatively affordable, with a December median of $695,000 – were strongly out-performing Sydney and Melbourne.
“We’re just seeing very, very different conditions in south-east Queensland at the moment,” Ms Conisbee said.
“Seller sentiment seems to be a little bit off in Sydney and Melbourne, but when we have a look at south-east Queensland, we see very elevated levels of listings.
“That suggests sellers are still very confident there are lots of buyers. At the end of last year we were seeing very high clearance rates and very high numbers of active bidders in the south-east Queensland market.”
A real test of market resilience will come next Sunday, January 23, when Ray White auctions 143 Gold Coast properties in a single day, Ms Conisbee said.
“That will give us a really good gauge of what’s happening with buyer activity.”
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| Quiet simply, the Palms is the place to buy! |
Sydneysiders and Melburnians, put aside your equally outstanding flat whites for a moment. Stop bickering about whether great beaches beat cool laneways (they do) and desist from debating whether all baristas require waxed moustaches (ideally).
Because Brisbane is closing in on the title of Australia’s best city, and we must join forces to keep this subtropical upstart in its place.
Time magazine recently named Brisvegas on its “World’s Greatest Places” list, and omitted our cities. It’s a huge shock (and who knew they still published Time magazine?). But they might be onto something.
Time points to the 2032 Olympic and Paralympic Games, which will be hosted in the maroon metropolis. Brisbane will do a fine job, even though it’ll baffle the world when rugby league is added to the schedule and Queensland is allowed to field its own team.
Time’s most radical claim is that Brisbane is worth visiting now, but tourism is surging. Not only did Lin-Manuel Miranda recently drop in to catch Hamilton , but hundreds of Hamilfans flew up to watch his interview with Leigh Sales (presumably unaware that it would subsequently arrive on iView for free).
A leading local agent has appraised each side of these duplex's to be worth $665k on completion and rent for $495 per week. So that is massive potentail instant equity of up to $390K on completion, which is incredibly hard to find.