Growth set to continue as home values surge in February.
Summer is officially over but the heat shows no sign of leaving the Gold Coast property market with February figures revealing staggering growth in housing values.
CoreLogic’s national home value index reports national home values surged 2.1% higher in February – the largest month-on-month change in 17 years.
Regional Queensland was a standout performer, outshining the capital with a 1.9% increase in housing values over the past month and 9.2% growth over 12 months, compared to Brisbane’s 5%.
Spurred on by a combination of record-low mortgage rates, improving economic conditions, government incentives and low advertised supply levels, Australia’s housing market is in the midst of a broad-based boom.
“The last time we saw a sustained period where every capital city and rest of state region was rising in value was mid-2009 through to early 2010, as post-GFC stimulus fueled buyer demand,” says CoreLogic’s research director Tim Lawless.
Exceptional February figures are in line with a record sales month for Kollosche who handled more than 50 prestige property transactions in February. Average year-to-date days on market remain low at 24 while results under the hammer are strong with a clearance rate of 80%.
Kollosche managing director Michael Kollosche said strong price growth in February was a continuation of record prices and unprecedented demand over many months.
“Supply levels remain tight and there are more buyers than sellers,” says Michael.
“Our biggest challenge right now is sourcing enough stock to satisfy our network of buyers.”
“January was exceptionally strong for Kollosche and March is looking every bit as good. As long as rates remain low, I don’t see the demand nor prices dropping any time soon.”
Luxury growth set to continue
Knight Frank’s latest wealth report predicts strong demand for luxury property is set to continue across the country, with price growth of 3% predicted for the Gold Coast.
The Prime International Residential Index (PIRI 100), which tracks the movement of luxury residential prices across the world’s top 100 residential markets, shows luxury residential price growth was strongest in the smaller Australian cities over 2020.
The Gold Coast is among five Australian cities (including Perth, Brisbane, Sydney and Melbourne) to have ranked in the top 65 for luxury residential market performance over the past year, recording annual price growth greater than the global average of 1.9%.
The Gold Coast ranked 36 overall with an annual growth of 3.2%, up from a ranking of 55 in the 2019 index, with a growth forecast of 3% for 2021.
Outdoor space and leisure facilities or amenities are among the attributes listed as most important for Australian ultra-high-net-worths purchasing a new home in 2021.