There has been a lot of talk lately regarding Gold Coast property prices. Depending on which newspaper or media outlet you subscribe to, you could be reading that Gold Coast property prices have peaked or that the local property market is still breaking records. So which is it?
What these stories don’t take into consideration is that the Gold Coast is made up of a number of suburbs, and while some may still be performing exceptionally well, growth in others has started to slow.
At Elanora Realty, it’s our business to know the Southern Gold Coast property market. And this week we’re focusing on Elanora and what recent property sales and external factors indicate about the current market.
Elanora market statistics
Like the rest of the Gold Coast, Elanora has seen exceptional real estate market growth over recent years. Since 2013—in just 5 years—the median sale price has increased by a massive 43.1%.
In the last 12 months alone, property prices have increased steadily from $650,000 in July 2017 to $686,000 in May 2018. In June this year, however, we saw median house prices dip for the first time, with sales dropping below the previous month. This could indicate that prices have hit a plateau and, while we are not expecting a huge drop in sale prices, it is unlikely Elanora will experience the kind of growth it has had over the last 5 years.
Market cooling factors
Nationally, the housing market is down by 2.7% and regional market growth is slowing. This trend is being led by Sydney and Melbourne where property values have dropped 6% and 3.4% respectively, over the past 12 months.
In addition to lower property prices, there is concern that the Financial Services Royal Commission will have a cooling effect on the property market. Mortgage finance is one of the main drivers of the substantial increase in house prices that we have seen in recent times. If the Australian Prudential Regulation Authority (APRA) insists mortgage lenders further tighten their lending criteria, it will affect the real estate property market. We predict property prices will drop because buyers will have to apply for lower mortgages than they can under the current lending rules.
With the possibility of tighter lending criteria on the horizon and the slight cooling of Elanora property prices, now may be the right time for you to put your house on the market. Prices are still strong and are unlikely to rise substantially over the next 12 months.