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 suburbs are performing exceptionally well, growth in other suburbs have level out.
At Elanora Realty, it’s our business to know the Southern Gold Coast property market. And in this article, 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. In just the last 12 months—the median sale price has increased by a massive 8.5%, which equates to an increase of approximately $60,000.
Elanora House: Median price $772,500, Annual capital growth 8.5%,
Elanora Unit: Median price $450,000, Annual capital growth 9.7%
The on-going talk of a strong rebound in both the economy and property prices in 2021 has interstate and local buyers scrambling to secure their next home or investment property as soon as they can.
Due to COVID-19, Australians are valuing the safety of space more than ever before. With a Westpac survey showing over 70% would now prefer to live in a house that offers more open space.
Apartment living won’t completely lose its appeal due to affordability and location for some buyers, however developers are already recognising the need to re-assess the amount of apartment building they undertake.The changing demand for houses will reflect more multigenerational living, with many young people leaving the rental market in 2021 and returning to the family nest.
Multigenerational families require bigger houses, which could further fuel a move to the more affordable outer suburbs or delay parents’ plans to downsize. It might also inspire renovations and extensions such as separate wings, granny flats and self-contained areas. The borrowing for renovations and extensions has been increasing month by month.
Work patterns have changed and work-from-homers no longer need to live close to the office, so they are free to relocate to more affordable suburbs with good local conveniences and transport links for those necessary trips to the CBD.
We predict property prices will level out over the next 6 – 12 months because many potential buyers will have to re-evaluate their employment situation once the job keeper and other government assistance measures are tapered off or come to an end.
Yes, interest rates are at an all-time low but this doesn’t mean financial institutions will lend money to everybody. Other factors to consider are population growth, interstate migration, housing affordability and unemployment levels.
There will be much conjecture along the way but pay attention to those important factors and you will get a much clearer picture of the road ahead for real estate.
So much is dependent on the next few months and how the economy responds when the government subsidies are tapered off and we will all have to stand on our own two feet. This of course has an impact on interest rate settings, unemployment numbers, population growth, and housing affordability.
Very interesting times ahead to say the least.
