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Affordable & Liveable Property Guide 1st Half 2021 | Gold Coast

Overview

Median property prices in Gold Coast Metro increased by 20.2% for houses to $787,000 from Q1 2020 to Q1 2021*, and by 10.2% for units at $496,000. Across the same period, total sales in Gold Coast Metro increased by 52.9% (to 2,347 sales) for houses and by 75.6% (to 3,520 sales) for units.

Gold Coast Metro’s median price growth occurred amidst increased sales activity, indicating real returns in capital investment. This is great news for current and future owner-occupiers, as they can be confident of the property’s market value.This is further supported by the decline in average days on the market by -30.3% (to 46 days).

A key finding in this report was that majority of the affordable and liveable suburbs identified were diversified within the north and south side of Gold Coast Metro. In previous reports, there has been an even spread throughout the metro for affordable and liveable suburbs.

Another interesting finding is that premium suburbs are located within the south coastal side of the Gold Coast Metro. Furthermore, those with a the lower price budget below $500,000 can still access suburbs that are located within the Gold Coast CBD. Although opportunity in this price range is limited, eagle-eyed first home buyers and investors can benefit.

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


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Access to Market

The dominant proportion of homes sold in Gold Coast Metro across 2020/21# were in the premium price bracket of $850,000 and above (34.4%). Units recorded a split dominant price bracket of $550,000 and above (36.7%) and less than $399,999 (33.3%). This further indicates that Gold Coast Metro is a premium market, however with some affordable opportunities available.


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Affordable & Liveable Suburbs

To identify affordable and liveable suburbs premiums of 71% for houses and 12% for units were added to the Queensland (QLD) average home loan, which were below those required to reach Gold Coast Metro’s median prices (80% for houses and 13% 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.

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Investment Opportunities

In March 2021, unit rental yields in Gold Coast Metro were recorded at a strong 5.5%. In the 12 months to Q1 2021, the median unit rental price increased by 6.0% to $460 per week, coupled with average days on the market declining by -33.3% (to 16 days).

In March 2021, Gold Coast Metro recorded a low vacancy rate of 0.8%, well below that of Brisbane Metro (1.5%) and Sydney Metro (3.4%). Vacancy rates in Gold Coast Metro remained well below Real Estate Institute of Australia’s healthy benchmark of 3.0%, even throughout COVID-19. Furthermore, Gold Coast Metro’s vacancy rate has shown a declining trend since peaking in May 2020. This indicates a healthier rental demand which should  invite astute investors to capitalise in the Gold Coast market.

The Gold Coast Metro rental unit market has shown strong growth and resilience throughout COVID-19, which is a comfort to investors who may be wary of a unit rental oversupply due to restrictive economic and border conditions.

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 2019 to 2020/211.
  • Investment criteria – as of March 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 $438,131** as of Q4 2020. Premiums of 71% for houses and 12% for units were added, which were below those required to reach Gold Coast Metro’s median prices (80% for houses and 13% for units). This places the chosen suburbs below Gold Coast’s median prices, thus 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 1st half of 2021, as well as a higher proportion of residential and mixed-use 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, December Quarter 2020 release).

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PRD Affordable and Liveable Property Guide 1st Half 2021 - Gold Coast