The Year That Was For Property
December 19 2022
Christmas is almost upon us, offering a perfect opportunity to reflect on the Gold Coast property market over the past 12 months.
Broadly speaking, 2022 has been a time for readjustment.
The introduction in May of the first of several successive interest rate rises soon put the brakes on buyers as banks tightened their lending belts.
This led to a Mexican stand-off over pricing as vendor expectations took time to adjust to the new level of ‘normal’ and investors acknowledged that the market was not going to plunge into a state of recession resulting in a bounty of bargain buys.
Profits narrowed marginally, but the huge gains achieved during the pandemic peak allowed price growth to remain well in the black throughout 2022, with many suburbs continuing to register 25 per cent price growth as the market moved into the second half of the year.
Mermaid Beach was a stand-out performer, with a number of mega sales along Hedges Avenue helping to bolster the suburb’s median house price as aspiring buyers fought to claim an address on the tightly-held street.
The prestige property market overall remained impressively strong throughout the year, buoyed in part by a severe shortage of quality housing stock and a large number of cashed-up buyers seeking to move to the Coast or invest, ready for a rainy day.
Rising costs and delivery issues, which continue continue to affect the construction industry, also worked to buoy the prestige market. In 2022 we saw a definite flight to quality, with buyers seeking new-build or well maintained established homes and apartments that offer a lock-and-leave lifestyle.
It’s been an extremely positive year for commercial property sales, with Kollosche Commercial securing some of the biggest deals across the Gold Coast. The Voyager timeshare resort in Broadbeach sold for $45,001,680 and Sunland’s The Marina Village retail precinct in Marina Concourse, Ross Street, Benowa, fetched $16,780,000.
The sales show a high level of buyer confidence in the Gold Coast market across all sectors, which is encouraging heading into the next property cycle.
Luxury apartments in boutique or respected residential-only buildings also performed exceptionally well this year, with price growth outstripping that of houses for the first time.
Buyers with future plans to downsize or relocate were drawn to off-the-plan developments, where the price per square metre presented excellent value compared to established apartments in the current market.
Auctions continued to be the preferred method of sale in 2022, as both vendors and buyers sought transparency in the time of readjustment. The majority of properties continued to sell under the hammer, or shortly after, in many cases above reserve prices.
This was despite a reduction in the average number of registered bidders and auction attendance numbers, particularly throughout the winter months.
The shortage of stock again contributed to the sturdy results, a scenario that is set to continue in 2023 and beyond as the city tries to accommodate an influx of international, intra and interstate migrants. An estimated 18,000 people make the Gold Coast their home each year, with the City Council expecting this to rise to 25,000.
The combination of rising migration and low stock has some commentators predicting that Queensland, aided by the active Gold Coast market, will be the state to lead a national property market recovery next year.
Savvy sellers seeking to capitalise on the recovering market early in 2023 have already locked in marketing campaigns aimed at putting them at the forefront of a swollen Gold Coast population over the summer holidays.
The holiday season on the Gold Coast is traditionally one of the busiest for real estate as visitors combine their annual holidays with a property investment mission.
We look forward to helping you to fulfil your property goals throughout 2023.
‘Ruin-X’ 31 Beaconsfield Drive, Burleigh Waters – SOLD $2,713,888
The fully rendered house stirred up a media frenzy and captured the attention of the nation. More than 300 people squeezed into the home to watch the renovated residence sell under the hammer to a Sydney buyer.
159 Hedges Avenue, Mermaid Beach – SOLD $21,000,000
This beachfront home along ‘Multi-Millionaires’ Row’ was the highest residential sale on the Gold Coast in 2022. Rising to four levels, the home reached more than $5,000,000 above its previous sale price in January last year when it sold for $15,750,000.
‘The Voyager’ 167 Old Burleigh Road, Broadbeach – SOLD $45,001,680
The Voyager Resort was snapped up after a four-year road to market for 3,000 timeshare holders, most of whom bought into the 16-storey building when it was launched in the mid-1980s. A five-week campaign attracted more than 155 enquiries.
Marina Village Retail Precinct Marina Concourse, Ross Street, Benowa – SOLD $16,780,000
One of the last remaining Queensland assets to be released by Sunland Group, the precinct sold to a Gold Coast buyer after a comprehensive marketing campaign garnered 168 enquiries.