Gold Coast home prices expected to rise by up to six per cent in 2019.
GOLD Coast home prices could grow as much as six per cent next year, bucking national trends.
The 2019 Housing Boom and Bust Report, from leading independent property analyst SQM Research, expects home prices on the Glitter Strip to rise between two and six per cent next year and rents to increase between two and five per cent.
Prices on the Gold Coast are expected to rise between two and six per cent next year while rents are set to increase between two and five per cent.
SQM Research managing director Louis Christopher attributed the increases to a limit on development in the city combined with an upswing of interstate migration, particularly from Sydney and Melbourne.
“We know the Gold Coast has a boom and bust history and the prominent reason behind that is the momentum picks up again and developers notoriously go crazy and overbuild,” Mr Christopher said.
“This time round the difference is the developers have not been given the finance to go crazy and so building approvals have been somewhat limited in the most recent upturn.”
“We also note that when we look at pricing levels the Gold Coast is offering close to fair value unlike Sydney and Melbourne which are heavily overvalued.”
Pricing levels on the Gold Coast are close to fair value.
Mr Christopher predicted property prices to “bottom out” on the Gold Coast over summer before picking up again in 2019.
It follows a property slowdown after the Commonwealth Games.
“Once the Games were over the market started to slow and prices started to record some modest falls,” he said.
In the 12 months to November, SQM Research revealed house prices on the Coast were down 0.2 per cent while unit prices were up 3.6 per cent.
“We’re not expecting falls to continue in 2019,” he said.
“But the price gains will be fairly modest in the scheme of things.”
Sydney and Melbourne buyers are still flocking to the Gold Coast.
Ray White Surfers Paradise Group CEO Andrew Bell said the softening property market in Sydney was having a positive flow-on effect for Gold Coast real estate.
“Sydney’s loss is our gain, because despite the falls in home prices down south, our market is holding up remarkably well,” said Mr Bell.
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While Mr Bell acknowledged the property market was not as strong as the Gold Coast had hoped for earlier this year, sales volumes and inquiries had firmed over the third quarter of 2018.
“In hindsight it wasn’t as robust as many had expected, while tighter lending conditions didn’t help either, but there has been a definite increase in activity in the latter half of the year,” Mr Bell said.
“With migration to the Gold Coast at record levels we are holding up well as a very robust market, given the high volume of cashed-up downsizers who don’t require finance.”