Market Insights

Why Prestige Property Prices Have Held in 2022

November 18 2022

Housing supply has been the fundamental driver of Gold Coast real estate this past year and that situation shows no sign of changing in the sprint to Christmas.
Why Prestige Property Prices Have Held in 2022

The property market opened the year riding high on the coat-tails of extraordinary pandemic property price growth, the effects of which were felt well into the first quarter.

In May, the first of several rate rises took some of the heat out of the market as buyers cooled their heels and banks tightened their lending belts.

As the year went on, speculation of significant price falls was rife against a backdrop of rising inflation and higher mortgage costs.

Why Prestige Property Prices Have Held in 2022 | Kollosche

And while market momentum has certainly shifted, sales results in the prestige property arena have largely held their own – in part because high net worth buyers have cash to splash, but mostly because there aren’t enough houses for sale to satisfy the demand.

Stock levels are extremely tight as the Gold Coast struggles to recover from an influx of an estimated 50,000 new residents who arrived in the city last year alone.

In the next two years, the short supply of houses and apartments is expected to be even more acute as the impacts of stalled construction play out across the city.

A flight to quality has been evident this year, as is often the case in these market conditions.

Prestige property buyers are preferring new or renovated residences with nothing to do but move in, moor the boat and mix a martini.

Why Prestige Property Prices Have Held in 2022 | Kollosche

With summer fast approaching, Kollosche is expecting buyers to remain active over the festive season when people are relaxed with more time to inspect property.

An influx of holidaymakers from interstate and abroad also makes summer an ideal season to get eager eyeballs and plenty of foot traffic to the doorstep of any serious seller.

The supply demand ratio can only continue to keep sale prices high as more buyers compete for fewer properties, especially those that are marketed in the right way.

In you are considering going to market in the warmer months, reach out to one of 30 Kollosche agents who work as a team to get the best price for our asset.

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