Emerging global developments, including pushback against Donald Trump’s new US tariffs, are putting upward pressure on inflation, but slowing economic momentum. As a result, interest rates are expected to drop significantly over the next 12 to 24 months as central banks, including the Reserve Bank of Australia, react to this changing landscape.

A succession of reductions in the cash rate will have a significant impact on the Gold Coast housing market, with the first two rounds of cuts, totalling 0.5 percentage points, already coming into effect.

Analysis from the latest K Insights Gold Coast Outlook report, produced by Kollosche in conjunction with one of Australia’s leading demographers and property market analysts Michael Matusik, shows that every 0.25 per cent drop in mortgage rates increases borrowing capacity by up to 3 per cent, or about $15,000 for the average Australian household.

This boost in buying power, paired with record-low housing supply, is the perfect recipe for a Gold Coast property boom and the market is already exhibiting early signs that support this.

According to the report, there are seven core criteria that underpin a market boom, and the Gold Coast meets every one of them. They are:

• Population Growth – The Gold Coast is growing faster than expected, with the city attracting no longer just retirees but families, professionals and entrepreneurs. The forecast is that the Gold Coast’s population will reach 825,000 within the next decade, representing a 20 per cent rise.
• Employment Growth – Job creation in the region is strong, with tourism bouncing back and commercial activity surging. More than $3.1 billion in commercial development was approved in 2023 alone, and 4.9 million tourists injected $7.5 billion into the economy last year.
• Rising Wages – The average household income on the Gold Coast has risen to $145,000, which is about 5 per cent higher than the Queensland average. This shows the region is no longer just a lifestyle location but a serious economic hub.
• Tight Supply – Approximately 2,900 houses and 3,170 attached dwellings are currently listed for resale on the Gold Coast, equating to a 3.6-month supply pipeline. In the rental market, vacancy rates have also fallen significantly over the years, leading to an under supply. Housing shortages push up prices.
• Undervalued Housing – Renovation is starting to rise for the first time since the pandemic. Local investors are highly active, but the cost of building new homes continues to rise. With construction lagging demand, existing properties are holding value and lifting.
• Balanced Demographic Mix – The Gold Coast is now made up of a diverse, multi-generational community of downsizers, upgraders, young professionals, and families – all driving demand.
• Lifestyle Appeal – Beaches, climate, infrastructure, and lifestyle make the Gold Coast one of the most desirable places in the country to live.

With interest rates expected to drop by up to 2 per cent in the next 18 months and a market already short on supply, housing values and rental returns will lift strongly, outpacing most buyers’ earning capacity.

Astute buyers will act with urgency before competition lifts in the market and price growth moves into a state of momentum, whilst the broader market will wait until the market has lifted and the frenzy begins before they act.

For further information, data, and trends, download a free copy of the full K Insights Gold Coast Outlook report.