We held our invitation only Investors Information Night, which focuses on the local market on September 2. One of the things that showed up clearly in the data presented is just how strong the southern Gold Coast property market is.

These two slides strikingly show just how strong the local market was in 2006-7 and is at this stage of the cycle. The first graph shows that the Gold Coast market had reduced sales and increased prices during that period which is exactly what you would expect to see. The red quarters cover the period of the 2009 $21,000 First Home Owners scheme which was  one of the Rudd government’s responses to the GFC. There is no doubt that across the Gold Coast it did have the desired result.

This second graph is of Palm Beach house prices over the same period. It is almost the reverse. Right through 2006 and 2007 sales were strong in the area while at the same time prices were increasing in line with the rest of the Gold Coast.

 

During the GST response the impact on Palm Beach sales volumes was nowhere near as pronounced as it was for the Gold Coast overall but prices rose in line with the Gold Coast.

 

Since then prices and volumes have risen here for 11 consecutive quarters and turnover is, at least so far, matching turnover during 2006 -7.


Most property observers are predicting that the Gold Coast market will remain strong for at least 12 months and possibly until the Commonwealth Games in 2018.

That being the case it seems the local property market can look forward to continued gains for some time.
We also saw evidence that vacancy rates are tightening, arrears rates are dropping and rents are rising. All these are indications of a growing Gold Coast.