Property prices between Sydney and the Gold Coast are coming ever closer, with the region soon tipped to surpass its metro counterpart.

According to the latest Residential Trends Report by K Property Insights, the current price difference between the two cities is 14 per cent, the lowest it has been since a 45 per cent peak in 2010.

With the Gold Coast poised for substantial property growth over the next 12 to 18 months – the report projects a rise of between 5 and 8 per cent – it may become the country’s most expensive market.

Michael Kollosche, Managing Director of Kollosche, says the Gold Coast is receiving unprecedented demand from luxury property buyers, which alongside other market conditions, is pushing the city’s overall median higher. 

CoreLogic shows the Gold Coast’s median house price over the past 12 months as $1,100,000, with Sydney’s $1,415,000. Unit prices are even closer at $715,000 and $780,000 respectively.

“This is a golden opportunity for the Gold Coast to narrow the gap with Sydney, especially as high-net-worth individuals continue to migrate to the region,” Michael says.

When the right market conditions present themselves, the Gold Coast and Sydney’s property market have historically been closely aligned. The gap widened significantly in the decade following the 2000s, but since 2018 it again began to reverse.

While an apartment oversupply has contributed to previous price gaps, the city now faces a severe deficit in the number of new apartments being delivered, which will have a significant impact on prices.

Combined with the fact that 30 per cent of existing high-end apartment buyers currently originate from Sydney and the price gap is expected to narrow further. 

“The growth that we are seeing is being driven by a combination of factors – a tightening market, rising demand, and key developments, including the Olympics.

“This is setting the stage for the city to potentially surpass Sydney’s property prices over the next decade.”