A report conducted by KnightFrank on global cities’ prime residential price growth positions the Gold Coast as Australia’s best performing city. With a 19.3% rise in residential price growth in the 12 months leading up to Q1 2022, it is also the seventh best performing city in the world. Sydney and Brisbane follow behind with a 16% and 11.3% growth respectively.
After taking a dip in Q2 2020, the annual percent change in prime price growth has steadily increased from 1% to almost 10% in Q4 2021, before taking a small dip to 9% in Q1 2022.
Despite a slowing of price growth, the Gold Coast continues to grow and outperform other cities.
In the six-month period between Q3 2021 and Q1 2022, the report shows that the Gold Coast had an 11.2% price growth rate. Within the same period, the Coast outperformed San Francisco, Los Angeles, and Seoul - the fourth, fifth, and sixth best performing cities in the world respectively.
It is clear that buyers continue to remain optimistic and enthusiastic about the Coast’s property market.
But why the slowing annual price growth? Evidently, the pandemic-induced boom is starting to wear off. What with inflationary pressures prompting higher costs of living and rising mortgage rates, buyer sentiment around the world has started to subside. Despite this, the Gold Coast continues to grow.
James Nikiforides, the Sales and Marketing Director of Niecon, says that, “The Gold Coast continues to be one of the fastest growing regions of the Queensland property market, showing over the last 12 months, the city’s median house price tipping over the $1 million mark. Additionally, with record-low rental vacancy rates it is an attractive choice for owner occupiers and investors alike.”
Niecon, currently led by the 3rd generation of the Nikiforides family, is a well-established local property developer best known for some of the Gold Coast’s iconic developments including The Oracle, Niecon Plaza, and Reflections Towers.
One of Niecon’s current projects is Ventura Residences Mermaid Beach. The property is a boutique development of 47 apartments and is already 90% sold.
It is easy to see why the Gold Coast is outperforming other major Australian cities. The sunny metropolis offers the best of coastal lifestyles and opportunities.
“The appeal for coastal living is what we foresee as the main driver for the surge in demand for Gold Coast properties,” James Nikiforides says. “As well as the relative affordability compared to capital cities such as Melbourne and Sydney, the increased investment in local infrastructure, desirable amenities and reduced commute times and less congestion versus the capital cities, plus strong levels of capital growth which for many years has been undervalued.”
As property demand in the Gold Coast continues to rise, so do residential prices.
“Residential property values in the Gold Coast are starting to catch up to our neighbours down south,” James Nikiforides says. “The net interstate migration as a result of COVID and the new normal of working-from-home arrangements make the Gold Coast much more appealing to many Australians.”
KnightFrank’s report may show a slow-down in buyer sentiment globally. But, with the Gold Coast’s off-the-plan market evidently continuing to succeed, it is clear that the Gold Coast property market is thriving.
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