A Unique Australian Property Market
The Gold Coast property market stands as a unique place in Australia’s real estate landscape. With its unmistakable feature of high rise apartment buildings, the Gold Coast is one of three ‘sunbelt regions in the world (the other two being Durban and Miami). The Gold Coast sunbelt region stretches from Tweed Heads in the south to Sanctuary Cove in the north. This finite strip, 46 km long and 25 km wide, bordered by the Pacific Coast and mountains just 25 km to the west, creates a naturally restricted property market where vertical development is often the only option.
Expert Market Insights
Watch as Property Market Expert Dominic Cavagnino from Binnari Property, discusses the key drivers shaping the Gold Coast property market predictions for 2025, including supply constraints, population growth, and investment opportunities in this unique sunbelt region.
Population and Tourism Impact
What makes the Gold Coast property market a rarity in the Australian property market, is that its population is getting close to 750,000 making it a city in its own right but that population swells by 300,000 each month and up to 500,000 visitors at Christmas and Easter periods. No other city in Australia has such an influx of holiday makers in percentage terms than the Gold Coast. As a result, a good portion of the accommodation on the Gold Coast caters for this regular influx of short term visitors.
Economic Diversity
The Gold Coast’s economy extends far beyond tourism, featuring:
– 350 schools and 3 universities
– Over 12,000 medical industry employees
– 52 golf courses
– Hundreds of annual events and conferences
So it is a diverse microcosm!
Historical Performance and Market Maturity
Market Evolution
Historically in the 1980’s and 1990’s a feature of the Gold Coast property market was that it had more extreme ups and downs than those experienced as part of the ordinary property market cycles taking place in the rest of Australia. What has shifted in the last 15 years is that those extreme fluctuations are no longer a feature which proves that the Gold Coast market is now a mature property market showing more stable growth patterns aligned with broader Australian property trends.
Recent Performance
Before we get into where the Gold Coast property market might be heading in 2025, let us look at how it has performed in recent years. Starting with the onset of COVID and the restrictions that were placed on residents in the southern states, there was a strong migration north to Queensland and in particular the Gold Coast to take advantage of the lifestyle the Gold Coast presents. As a result, property prices have increased significantly over the past 4 to 5 years.
Some other regions throughout Australia that saw a rapid rise in prices during COVID have in the past 12 to 18 months seen a decline in prices. Byron Bay for example has seen prices decline 15% to 25%. Whilst the Gold Coast property market has cooled in the second half of 2024, there have not been the price declines that have been seen in other regions in Australia.
Supply Constraints Shaping 2025 Predictions
The Gold Coast property market predictions for 2025 are heavily influenced by current supply constraints:
Development Challenges
– Construction costs increased approximately 40% during COVID
– Many planned projects were halted due to cost blowouts
– Infrastructure development in Brisbane is drawing away labour resources
– Limited new supply is expected to continue for 3-5 years
Impact on Property Values
These supply constraints are expected to underpin property prices throughout 2025 and beyond, creating a strong foundation for market stability.
Growth Drivers and Market Outlook
Several factors support positive Gold Coast property market predictions for 2025:
Strategic Location
– Proximity to Brisbane
– Access to employment opportunities
– Higher income potential from Brisbane job market
Lifestyle Evolution
– Enhanced restaurant and entertainment precincts in areas like Main Beach, Broadbeach, and Burleigh Heads
– Increasing appeal for permanent residents
– Growing luxury apartment market catering to owner-occupier downsizers
There is currently a high amount of net migration from the southern states to south east Queensland and there is no reason that will not continue in the short to medium term.
Investment Opportunities 2025
Entry-Level Markets (Under $1M)
For investors there are new apartments or apartments selling off the plan in a number of areas where the entry point is under $1m. Key areas for investors to consider include:
– Southport (Gold Coast’s business centre)
– Robina
– Selected off-the-plan developments
Premium Coastal Strip ($1M-$2M)
If investors are considering apartments, other areas along the coastal strip represent good investment opportunities for prices between $1m and $2m in 2025. Strong investment potential in:
– Surfers Paradise
– Main Beach
– Broadbeach
– Burleigh Heads
With the anticipated limited supply set to continue into 2025 and beyond, securing an apartment off the plan now just might result in an uplift in the price between what you pay now and what it may be worth when it comes time to settle.
That is due to the price of raw materials and labour being higher in 3 to 5 years than what they are now and therefore the property cannot be built in 3 to 5 years at today’s prices. Hence the sale price of properties will invariably increase. For these reasons the Gold Coast property market predictions for 2025 indicate it will remain one of the top three places in Australia to invest in between now and 2028.
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The content of this blog reflects the personal views of the author and is for information purposes only. It does not constitute financial, investment or professional advice. Readers should conduct their own research and consult a qualified financial or property adviser before making any decisions to invest in property. The author and the blog are not responsible for any actions taken based on the content.
