Mid-Year Real Estate Market Update: Trends, Insights, and Community Highlights

Hi, Andrew Bell here. As we enter the second half of the year, we’re witnessing some shifts in the real estate market. For the first time in about four years, we’re seeing changes in the trendlines. However, it’s important to remember that we are in the depths of winter, which has been particularly cold recently, a factor that historically slows down the market. Additionally, distractions such as the Trump shooting, various sporting events like the State of Origin decider, and the lead-up to the Olympics have diverted attention from the real estate market. Consequently, there’s been a decrease in attendance at open homes and increased hesitancy to pay higher prices.

People’s borrowing capacity is closely aligned with their income, and many have reached their maximum level of weekly loan repayments, limiting their ability to borrow more money for higher-priced properties. High interest rates continue to take a toll. As a result, there are areas around Australia where real estate price growth has not only stalled but even declined. This trend is also observed on the Gold Coast.

The Gold Coast market stands out because our population continues to grow. According to the Queensland Government Statisticians Office, the city welcomed 19,170 more people in the 12 months leading up to June 30, 2023. This growth was the largest among all statistical areas in Queensland, bringing the city’s estimated population to 682,490 as of a year ago. If this growth trend has continued, as expected, the population would have surpassed the 700,000 mark. If this growth persists, the city’s population could reach 1 million by 2037, well ahead of previous estimates.

This continual influx of high-wealth clients, many of whom are selling their multimillion-dollar properties elsewhere in Australia and bringing their wealth to the Gold Coast, drives up real estate prices. These new residents often attract extended family and friends to visit, who then also decide to move to the Gold Coast, further endorsing the region as an attractive place to live.

While many parts of Australia are experiencing substantial price corrections, the Gold Coast has not shown signs of significant price reductions. Although there are fewer people actively looking to buy, those who are remain driven by the need to secure a home, ensuring a solid market floor.

Switching topics, I often get asked about Mt Tamborine, which is a beautiful tourist location, especially at this time of year. I want to highlight an incredible, unique, and award-winning establishment that offers a great lifestyle opportunity. Situated on the edge of a cliff with breathtaking valley views, this property includes a standalone home and five self-contained mountain chalets, each featuring a main bedroom, ensuite, spa, potbelly log fire, lounge, kitchen, laundry, and entertaining deck. It’s located near numerous wineries, specialty shops, and tourist attractions, making it an excellent opportunity to combine income with lifestyle. There is also a restaurant facility available. This rare opportunity deserves mention today. Details are on screen now, or you can email us at the address from which you received this newsletter for more information.

Lastly, for all Gold Coast residents, we are hosting a wonderful community event on Saturday, August 3rd, in Main Beach. “Main Beach’s Next Top Dogel” is now in its fifth year, and we are excited to announce that Bluey and Bingo will be performing their Live Interactive Experience on stage, with a Meet and Greet opportunity. There will be activities for our four-legged friends as well as for children. You can enter your dog into one of six categories or simply walk in the Grand Parade. There will be market stalls and the crowd-favorite Dachshund Dash. This event is one of our favorites because it brings smiles to everyone’s faces. Tedder Avenue will be closed, but all shops, cafes, and restaurants will be open. We would love your support, so join us on Saturday, August 3rd, from 9 am.

There’s plenty to talk about in the coming weeks, and I look forward to sharing more information with you.