The Gold Coast could soon see more suburbs hitting the million-dollar mark, according to new research from CoreLogic.
A concept which would have been unthinkable in generations past, with their six figure median price, million dollar suburbs have been on rise in Australia in recent years. Read on to find out how the Gold Coast features.
The million dollar trend
The emergence of more million dollar suburbs in Australia is a phenomenon that has continued to amaze homeowners and investors across the country.
In the aftermath of declining interest rates and investor demand that surrounded the four-year housing boom, the number of six-figure suburbs has seen a steady increase since 2013 – coinciding with an almost 40 per cent increase in house prices across the country from 2012.
This is according to CoreLogic RP Data, which reports 613 suburbs nationwide with a median value of $1million as of June 2016.
"The data highlights the bracket creep that has occurred over the housing growth cycle, and how housing affordability in New South Wales (Sydney) and to a lesser degree Victoria (Melbourne) has deteriorated," writes CoreLogic senior research analyst Cameron Kusher.
It's a figure which marks an increase of over 29 per cent from last year, and a remarkable 125 per cent hike in the past three years. Of all the six figure suburbs, CoreLogic reports that the vast majority (93 per cent) were listed for houses, with the remaining 7 per cent listed for units.
Chairman of the Real Estate Institute Queensland (REIQ) John Newlands expressed his surprise at the increase of million dollar suburbs in the Gold Coast.
"It is pushing up the values on the Gold Coast and that is great news for the market," he told the Gold Coast Bulletin.
"People are willing to pay a premium and of course it will catch the eye of interstate buyers."
Breathing life into the Gold Coast property market
In Queensland, Tenerife takes the top spot as most expensive suburb, coming with a median house value of over $1.6million according to CoreLogic.
"While housing demand overall may be slowing a little, we expect that with historic low interest rates, demand for premium housing is set to remain buoyant over the coming year," writes Kusher.
Kusher also notes that we could see the number of million dollar suburbs continue to grow in the next 12 months.
Perhaps the Gold Coast's most celebrated million dollar suburb, Surfer's Paradise has a median value $1.2million. Other Gold Coast suburbs which have been tipped to join the million dollar club within a year include Bundall, Broadbeach Waters and Runaway Bay.
A particularly spectacular event to stir the Golf Coast property market is the recent sale of 57-59 The Corso in the Isle of Capri. The lavish mansion has been in the spotlight for once hosting Hollywood heavyweight Dwayne Johnson, and was reportedly sold for $15.5million.
It's hard to say whether we will see more multimillion dollar property sales making headlines in the months to come, but the Gold Coast property investment scene will definitely be one to watch over the next year.
Navigating the property market in the Gold Coast
With the potential for the number of million dollar suburbs to increase across Australia, it will undoubtedly present a number of challenges for those looking to get into property investment on the Gold Coast.
Fortunately the team at Ray White Projects Gold Coast is here to provide advice and support for anyone interested in diving into the world of Gold Coast property development. If you're ready to begin your property journey, don't hesitate to contact us.