The Gold Coast has always represented significant value for those leaving more expensive cities like Sydney and Melbourne, looking for comparable lifestyles at a lower cost. But it appears the cat is out of the bag, as housing in this Sunshine State hotspot is drying up.
Get in quick
Housing in the Gold Coast is still very affordable, with the median house price for Brisbane-Gold Coast hitting $514,810 at the end of October, according RP Data's Home Value Index. The same data puts units at a median price of $387,770, giving all dwellings a median price of $497,800.
Most of the capital cities measured by RP Data's index are recording median dwelling values over the half-million-dollar mark. Canberra sits at just over $598,000, Darwin at around $526,000, Perth leaps ahead to roughly $614,000 while Melbourne and Sydney lead the pack at around $691,000 and $812,000 respectively.
With figures like those, an average home owner selling in Sydney could afford to buy a home to live in on the Gold Coast, as well as a unit for investment, without adding much to their mortgage. In fact, the rent on the unit would probably make up the difference in repayment costs.
So why the hurry to get into the Gold Coast? Well, it's no secret that living in the bigger cities is becoming increasingly expensive and that the Gold Coast could be the answer to the capital city blues. In fact, SQM Research data shows a steady decline in available housing in the Gold Coast.
Although the October figures from SQM Research show a relative stability over the last couple years, a quick look at the bigger picture reveals a different story.
Units have been a larger proportion of stock on the market for the past few years, with data revealing a steady decline in available free-standing houses since April 2011.
While net interstate migration is currently quite low, according to the Real Estate Institute of Queensland (REIQ), it is expected to rise as other markets peak in living costs.
"With Queensland property prices relatively more affordable than our southern counterparts, one might expect our net interstate migration, and overseas migration, will improve over the coming years," said REIQ research analyst Yvette Burton in a 18 October market insight.
"This is especially the case given that our property markets here in SEQ and our tourism centres along the coast have only recently moved into the recovery phase of the cycle, compared to Sydney and Melbourne which appear to be nearing the peak of the market, if not already there"
Queensland residential construction recovery
It is hoped by many that the positive signs over the past year or so will continue, as a recovery in the Queensland residential building sector becomes prevalent. Not only is this a good sign for employment and the economy as a whole, but it will introduce fresh stock to the Gold Coast market.
Warwick Temby, executive director of the Housing Industry Association (HIA) in Queensland commented on statistics that revealed more new housing starts every year since 2011, with further increases forecasted for the coming years.
"Queensland is in the midst of a sustained upswing in new home building, with activity bouncing back strongly from the difficult post-GFC years," said Mr Temby.
"New dwelling commencements are finishing off their second consecutive year of strong growth, with more to come over the next few years. New dwelling starts in Queensland are enjoying their strongest year since 2008."
Hopefully with new housing on the horizon the Gold Coast will continue to be a place where real estate is relatively affordable and life can be simpler. After all, there is so much to enjoy in the area, who would want to be stressed out about the mortgage anyway?
