A remarkable year of recovery and record growth
In a year which saw the world brought to its knees by a global pandemic, record growth was not the outcome most of us could have predicted for Gold Coast real estate.
Many forecast the city might suffer badly from border closures, a drop in overseas tourists and investors and a sudden loss of employment or income.
Some sectors of business and our community have been impacted more heavily than others as the economic fallout from the COVID crisis saw Australia fall into its first recession in almost three decades.
Despite the challenges posed to both health and the economy, property at the top end of town has not just held its own – the Gold Coast has emerged as a go-to lifestyle location.
Interstate migration has added to an already growing population base as more Australians enjoy the freedom to work remotely in a town or city of their choosing.
The upside for the Gold Coast property market, and for us at Kollosche, is growth.
Growth in terms of demand and prices, which in turn has supported the growth of our team as well as the sectors and markets we service.
Record sales and price growth
The second half of 2020 has seen Kollosche record our best months – month on month – on record. In October our team transacted $90 million in prestige property in a trend that looks set to continue right up to Christmas and beyond.
Buyer activity has been particularly vigorous in the auction arena where higher than average bidder registrations and tight stock levels have contributed to a clearance rate of 100%.
The prestige market continues to show strength across the city, with acreage and riverfront real estate proving every bit as popular as beachside suburbs in a year where lifestyle is top of mind for buyers.
The results have defied all odds, with continuing high demand for luxury real estate putting pressure on stock levels and driving impressive price growth.
When ranked against the top five percent of luxury property markets across the world, the Gold Coast is 18th with 1.8 percent price growth in the third quarter of 2020.
High demand for luxury rentals
The property management sector has gone from strength to strength thanks to an influx of new residents looking to ‘try before they buy’ as well as locals upgrading or downsizing.
Our team has been handling large volumes of inquiry from high net worth tenants looking to secure quality homes and apartments across the city.
From July to September, southern Gold Coast suburbs recorded some of the lowest vacancy rates in the state, led by Coolangatta (0.2 per cent), Miami (0.4 per cent), Burleigh Heads (0.4 per cent), Currumbin (0.6 per cent) and Palm Beach (0.1 per cent).
Rental vacancy rates in Surfers Paradise fell from 5 per cent to 2.1 per cent in the three months to September – the tightest conditions in more than two years.
Demand far outweighs supply in key locations making it an ideal time to get in touch with our team if you have an executive property to rent on the Gold Coast.
Interstate buyers fuel the fire
In the months since COVID hit, up to 30 percent of our inquiry has come from interstate with an increasing number of remote buyers purchasing off the back of FaceTime tours and virtual videos walk-throughs.
But it’s not just those in lockdown looking for a better life in the Sunshine State – locals are also highly active in the market while those needing to bank their money in bricks and mortar have been responsible for a fair proportion of inquiry and sales.
Inquiry is strong across all price sectors – from $2 million right up to $15 million – and stock levels in the second half of this year are the tightest they’ve been in over a decade.
Properties that were sitting on the market have transacted and prices are at levels not seen since the Global Financial Crisis.
There’s been a recent influx of activity around our exclusive projects – Infinity in Broadbeach and White in Main Beach – from both locals downsizing off larger properties and interstate buyers looking to relocate and secure holiday homes on the Gold Coast.
With borders set to open ahead of Christmas, our team is bracing for a busy start to the new year as interstate buyers and holidaymakers descend on the Gold Coast to inspect properties in person.
Kollosche has recently expanded our service area across the border into Byron Bay, with vendors set to benefit from our network of buyers on the Gold Coast as well as those coming out of southern states.
Building the team across sectors
Growth has also been a prominent theme this year inside the Kollosche team, having welcomed several new members to bolster a team of 63 across residential, projects, commercial, property management, marketing and administration.
A huge thank you also to the Kollosche team who’ve gone above and beyond to ensure our clients have enjoyed an exceptional experience throughout the year.
Of course, our success would not have been possible without our clients — we thank you for your ongoing and unwavering support in 2020.
I wish you all a very merry and safe Christmas as we count our blessings in all that life offers us here on the Gold Coast.