Gold Coast unit prices have reached a “fresh price peak”, with a year-on-year increase of 10.32 per cent, while overall falls in the housing price market have “lost momentum”.
New data from the PropTrack Home Price Index shows home prices in Australia bounced in February across most markets, including the Gold Coast, after rapid price falls in recent months.
PropTrack senior economist Eleanor Creagh said market conditions shifted very quickly last year with substantial interest rate tightening and home prices falling in most parts of the country.
“We’ve seen that home prices bounced in February in most markets, over the last quarter, home [all dwelling] prices on the Gold Coast have jumped 1.43 per cent,” she said.
Ms Creagh said low stock levels were contributing to the home prices trend.
“There is weaker home buying demand with consumer confidence having fallen and expectation of further home price falls,” she said.
“That’s also being balanced by the fact there’s fewer poperies for sale at the moment, so there’s less choice for buyers.”
Home price growth, FebruaryYear-on-year Quarter-on-quarterOff peakPre-pandemicGold Coast – all dwellings1.13%1.43%-1.71%53.45%Gold Coast – units10.32%3.95%0.00%52.68%Gold Coast – houses-2.43%0.36%-4.30%53.79%
Unit prices peak
Unit prices on the Gold Coast have risen by 3.95 per cent during the past quarter, while house prices have risen by 0.36 per cent.
Ms Creagh said while units didn’t experience the same increases houses did during the pandemic, unit prices were “holding up better.
She said prices were holding up better in markets with more affordable property types as maximum borrowing capacities were reduced by 30 per cent.
“We really saw house prices outperforming unit prices throughout the pandemic,” she said.
Now as we’ve seen borrowing costs rise and maximum borrowing capacity reducing, we’re seeing the unit prices are holding up better. ”
Ms Creagh said the average unit price on the Gold Coast was $644,000 and the average house price was $983,000.
Andrew Henderson says lifestyle is a big factor in people’s decisions to move.(ABC News: Ian Cutmore)
Real Estate Institute Queensland Gold Coast zone chair Andrew Henderson said unit stock levels had increased slightly, but were still on the low side.
“A few of the new buildings that are nearing completion, a lot of locals are buying into those buildings,” he said.
Mr Henderson said they were buying into new apartment developments for a lifestyle change.
“Some are getting to the stage where maybe the stairs are a bit too much, maybe garden maintenance, they may want to travel,” he said.
“Having an apartment over a freestanding house with a garden and maintenance could be beneficial for a change in lifestyle.”
Article source: www.abc.net.au