Gold Coast property glitter stripped

THE median price of homes and units on the Gold Coast dropped more in the September quarter than those in any of the nation’s capital cities, new figures show.

On the Coast, the median house price dropped 4.8 per cent to $470,000 while the median unit price dived 9.1 per cent to $350,000.

The figures which were released as part of Australian Property Monitor’s quarterly report were ascertained using a stratified median methodology, which takes into account the composition of different areas and price bands.

The Coast’s 4.1 per cent drop in median house prices is also significantly bigger than the other capitals: Darwin and Brisbane were again the closest with drops of 1.9 per cent and 1.7 per cent respectively.

Despite the disappointing figures, Gold Coast property owners have been urged not to panic, with Real Estate Institute of Queensland Gold Coast zone chairman John Newlands saying several factors would conspire to help prices recover next year.

“The marketplace at the moment is at a stage where buyers are very cautious and unless they can buy right, they won’t buy at all,” he said.

“As things start to pick up in areas like tourism and the building industry, people will become more confident.

“There are other factors like population growth and a lack of available land opportunities on the Gold Coast, which should push prices back up.”

But APM head of research Yvonne Chan said while median prices would remain steady in the short term, property owners should brace for more bad news in 2011.

“The trend in the short term is it will remain unchanged but we will possibly witness further falls next year,” she said.

Ms Chan said the dramatic drop in median prices on the Coast could be attributed to several factors.

“Over the last few years, there has been continued growth in house prices on the Gold Coast, so with the change in economic conditions and with multiple rate rises, it has become more affordable,” she said.

There was some good news for local vendors.

“When we look at the sales, it shows there is a very high level of activity in certain areas,” said Ms Chan.

“Many suburbs have recorded healthy capital growth in the past 12 months.

“Places like Coomera, Hope Island and Benowa have had very strong sales and have achieved about a 10 per cent growth in median house prices in the past 12 months.

“In units, Mermaid Beach, Coolangatta and Main Beach … have also recorded a 10 per cent growth.”

Story Featured in the Gold Coast Bulletin by Henry Tuttiett   |  October 28th, 2010