FORECASTS for the Gold Coast property market are bright, with healthy gains to house values predicted for the next few years.
The CoreLogic-Moody’s Analytics Australia Home Value Index Forecast for the second quarter of 2019 expects home values to increase by 2.8 per cent next year and jump by 4.5 per cent by 2021.
This will be an increase of more than $27,000 to the Gold Coast’s $608,000 median house value in the next two years, according to CoreLogic data to May.
But before then, there will be a drop of 2.4 per cent in the median house value overall this year following a 2 per cent rise in 2018.
The risk management advisory group’s projection is less positive than the first quarter’s outlook, in which a 3.6 per cent jump was expected for next year.
But Moody’s Analytics economist Katrina Ell said despite this year’s fall, a gradual recovery was not far off.
“The Gold Coast is on track to escape the bulk of the national housing market correction, that has seen Sydney and Melbourne hit particularly hard,” she said.
“In fact, while other places like Great Sydney and Greater Melbourne saw sharp falls in 2018, Brisbane, the Gold Coast and the Sunshine Coast experienced growth, albeit relatively modest.
“An important driver is that the Gold Coast didn’t experience the same aggressive run-up in values that Sydney and Melbourne experienced.”
Kollosche Broadbeach director Michael Kollosche said the Glitter Strip was poised for a positive cycle for the next few years.
“It definitely feels like the market is starting to get some strong momentum,” he said.
“A lot of money is being spent on public and private infrastructure, a lot of jobs are being created and there’s a huge increase again in interstate migration.
“The Gold Coast will benefit from the reduction in the cash rate, which is primarily driven by the RBA which are trying to give the southern markets a soft landing from the current market conditions.”
Ray White Surfers Paradise Group CEO Andrew Bell agreed that despite an unsteady start to the year, the positive shift and market improvement were already noticeable.
“There is more confidence in the marketplace now that these obstacles have passed,” he said.