Gold coast property market predictions 2022

By Greg Bell

Interested in what the Gold Coast's real estate and property market will look like in 2022? In this article, we'll share some of our best insights and will point you in the right direction to make the best choices in the coming future. We'll look at things like the impact of global events and COVID-19 latest news as we move into 2022 and how that will impact capital growth. 

2021 housing market round-up

The past two years in the real estate industry have been interesting, to say the least. The Australian real estate market has experienced thethird fastest annual rate of house price growth in 140 years. We can use the information from this historical high to help predict what the market will look like in the future.

QBE's Australian Housing Outlook reports that the Southeast Queensland real estate market outperformed most other markets, including Brisbane, Perth and Adelaide. The number of first-time home buyers, average home buyers and investors in general increased in 2021. Another property analytic report found that Gold Coast homes reached a median house price of $727,219, which was an increase of 26.7% over the previous year. So demand was up on all fronts and supply was low, which is the perfect storm for sky-high Gold Coast property prices.

Several other factors have propelled the Gold Coast to the top of the market, as far as investors are concerned. With closed borders and less traveling, more people are attracted to all that the area has to offer and investments on the Gold Coast have increased in value over the past few years. According to ABC News, the northern Gold Coast is one of the region's fastest-growing areas and people are preferring that location over beach-side areas and islands.

2022 urban apartment investments

Looking to invest in apartment buildings on the Gold Coast? As more people are moving to the area, the right apartment investment could bring you success and see high returns. Here are the projected market values as 2022 begins to solidify.

The rental yield of Gold Coast is notoriously high and can be seen growing in tandem with the area's vibrant economy. Apartments and other units have been showing a yield of 5.8%, which is a decent yield for an investment property at this time.  A rental yield is how much income the investor gets from the rental after other costs, including interest rates and other measurements.

Keep in mind that even though the yields are high now, you should not bank everything on thinking that it will continue to grow. The housing and property market usually operates in a cycle. This can be seen in the following excerpt from Andrew Bell's Market Wrap up:

"The depth of our experience in knowing how to work in every stage of the market cycle certainly came to bear. We understand the concerns of buyers and we can rely on our experience to share knowledge with them. It's evident by the results. There are auctions held by other real estate companies that got very poor results. It reminds us just how important experience is when appointing a real estate agent. Not just experienced in the last year to five years but experience through many real estate cycles."

As more people move to the Gold Coast, they are looking to rent bigger apartments. Simultaneously, there is less stock on the market than ever. However, it is important to note that supply chains are beginning to operate more quickly, so more buildings are likely to be built.

Commercial real estate

Moving into the new year, we have already seen house prices stabilize, at least minimally. The value, however, is still growing, though at a slower rate than last year. Commercial real estate is also just beginning to get its feet under it, after nearly two years of businesses and office spaces being underused. More people are returning to work and picking up their at-home business to move to a storefront.

In addition, many investors are looking at the interstate migration trends and the aforementioned population growth to inform their next move. A good investor considers every factor, including the incoming 2032 Olympic Games' effect on the market — even though it's 10 years away. By the time 2032 comes around, 812,000 people will live in the regional Queensland area. All these people will bring with them a need for commercial rental spaces, so the projections will be good in the long term. Even in 2022, commercial real estate will begin its journey to recovery.

Home rental investments

A Domain report has data showing median price increases of almost 47% across some suburbs on the Gold Coast. According to our own Andrew Bell, "When any one particular suburb will kick on a bit, it normally drags shoulder suburbs up as well."

Despite this, the strain on the market is projected to increase as international travel opens up across the world. Even now, vacancy rates are low and there is still not enough inventory. At the end of 2021, the vacancy rates were 0.6%, when a healthy rate would be 2.6% to 3.5% according to REIQ chief executive Antonia Mercorella.

Some suburbs have been performing well, as the demand for rental homes in the area is high. Some of these include Broadbeach/Burleigh Head and Coolangatta. CoreLogic found that homes in those regional areas saw a 32.4% increase in costs compared to the capital city.

Keep an eye on the homes and suburbs along the future route of the Gold Coast light rail, as the property there is likely to increase in value. According to the government's website, the public transportation project will run near or by "Burleigh Head National Park, Palm Beach Village Centre, Currumbin Wildlife Sanctuary, Southern Cross University, Gold Coast Airport and Coolangatta shopping and business precinct."

As the Gold Coast continues to shine as an attractive investment, let us be your guide to property and real estate in the area. Reach out to a professional to learn more today.

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