Affordable & Liveable Property Guide 2nd Half 2021 - Gold Coast

Overview

Median property prices in Gold Coast Metro increased by 21.8% for houses to $877,000 from Q3 2020 to Q3 2021*, and by 9.1% for units at $540,000. Between Q3 2020 – Q3 2021 total sales increased for both property types, by 55.1% (to 2,886 sales for houses) and by 104.4% (to 4,414 sales for units). House and units in Gold Coast Metro show real returns in capital investment, as median price growth was alongside increased sales volumes.

First home buyer activity in Queensland (QLD) has significantly increased in the past 12 months, by approximately 40%. This is the highest growth across all states in Australia. There has been an increase in activity since the Olympics 2032 and roadmap to interstate and overseas announcements, with investors returning to the market in preparation for future demand.

The majority of the chosen affordable and liveable suburbs are located in the west middle and outer ring of the Gold Coast CBD. Many of the residential and mixed-use projects that are planned in the 2nd half of 2021 are in this area also, interestingly focusing more on units and townhouses property types. Although commended, subdivision residential lots and stand alone dwellings are not part of the planned projects – yet these property types are highly demanded by buyers in the Gold Coast Metro.

Table 1 highlights the top suburbs in Gold Coast Metro based on price growth and total estimated value of projects commencing in the 2nd half of 20212.

Access to Market

The dominant proportion of homes sold in Gold Coast Metro across 2021# were in the premium price bracket of $850,000 and above (49.8%). Units also recorded a dominant premium price bracket of $550,000 and above (47.0%). There has been a large shift towards premium pricing in Gold Coast Metro. Affordable options are still available, however have shrunk in the past 12 months.

Figure 1. Hobart Metro Houses Sold by Price Range

Affordable and Liveable Suburbs

To identify affordable and liveable suburbs, premiums of 61% for houses and -1% for units were added to the QLD average home loan, which were below those required to reach Gold Coast Metro’s median prices (90% for houses and 17% for units). Thus, the chosen suburbs have a median price below that of Gold Coast Metro’s, meaning that the suburbs identified within this report are more affordable for buyers.

Considering all methodology criteria (property trends, investment, affordability, development, and liveability), Tables 2 and 3 identify key suburbs that property watchers should focus on.

Investment Opportunities

In September 2021, house rental yields in Gold Coast Metro were recorded at 4.6%. In the 12 months to Q3 2021, the median house rental price increased by 21.5% to $650 per week, further complemented with a low average days on the market of 19 days. The house rental market has continued to show strong growth, proving its gains to investors.

In September 2021, Gold Coast Metro recorded a low vacancy rate of 1.2%, below that of Brisbane Metro (1.4%) and Sydney Metro (2.7%). Vacancy rates in Gold Coast Metro have remained within 1.0-1.5% in 2021, and have remained well below Real Estate Institute of Australia’s healthy benchmark of 3.0%, even throughout COVID-19. Gold Coast Metro’s vacancy rate continued to indicate quick rental occupancy throughout 2021 as supply levels were limited and interstate migration drove high demand. This should provide greater confidence to investors in the near future.

Methodology

This affordable and liveable property guide for Gold Coast Metro analyses all suburbs within a 20km radius of the Gold Coast CBD. The following criteria were considered:

• Property trends criteria – all suburbs have a minimum of 20 sales transactions for statistical reliability purposes. Based on market conditions suburbs have either positive, or as close as possible to neutral price growth between 2020 to 2021*.
• Investment criteria – as of September 2021, suburbs considered will have an on-par or higher rental yield than Gold Coast Metro, and an on-par or lower vacancy rate.
• Affordability criteria – identified affordable and liveable suburbs have a median price below a set threshold. This was determined by adding percentage premiums to the Queensland (QLD) average home loan, which was $461,414** as of Q2 2021. Premiums of 61% for houses and -1% for units were added, which were below those required to reach Gold Coast Metro’s median prices (90% for houses and 17% for units). This places the chosen suburbs below Gold Coast’s median prices, meaning that the suburbs identified within this report are more affordable for buyers.
• Development criteria – suburbs identified must have a high total estimated value of future project development for the 2nd half of 2021, as well as a higher proportion of commercial and infrastructure projects. This ensures the suburbs show signs of sustainable economic growth, in turn positively affecting the property market.
• Liveability criteria – all identified suburbs have low crime rates, availability of amenities within a 5km radius (i.e. schools, green spaces, public transport, shopping centres and health care facilities), and an unemployment rate on-par or lower in comparison to the QLD average (as determined by the Department of Jobs and Small Business, June Quarter 2021 release).