As the third quarter of the financial year ends, data shows house prices have remained resilient despite macro-economic factors hitting consumers’ hip pockets.

Healthy price growth was recorded across both houses and apartments, according to PropTrack data, driven by a sustained imbalance between supply and demand.

The Gold Coast remained a hotspot with house prices across the city rising 2.8 per cent in the past three months and 13.8 per cent annually. This growth outperformed that of the capital cities and brought the median price of a home on the Coast to a record $1.12 million.

SOLD: ‘De Ville’ penthouse Main Beach – $8,800,000

The apartment market was particularly robust with local agents continuing to report stable demand from buyers looking to upscale within existing buildings or downsize to the beachfront from larger hinterland or riverfront estates.

Kollosche achieved positive results across both sectors, including the sale under the hammer of the the ‘De Ville’ penthouse at 103/3645 Main Beach Parade, Main Beach for $8.8 million, and a waterfront property at 5 La France Court, Mermaid Waters for $13 million.

WHAT LIES AHEAD?

Heading into the Easter holiday break, however, global tensions between the US and the Middle East, national fuel shortages and an impending food crisis are dominating property conversations as leading consumer uncertainty to grow.

If the Strait of Hormuz remains closed – placing further pressure on Australia’s construction sector in the form of increased transport, material and labour costs – it will slow delivery of new housing, tightening the already constrained supply.

SOLD: 5 La France Court, Mermaid Waters – $13,000,000

From a demand perspective, there is a valid question around how long buyers can absorb the pressures. Prolonged hikes in the cost of living will start to erode borrowing capacity and confidence, particularly within more price-sensitive areas of the market. This could lead to lower transaction volumes and an extension of days on market.

While it is impossible to predict what the outcome of prolonged global instability will have, homeowners should be reassured that underlying market fundamentals remain intact.

The fact that Gold Coast prices continued to lift in an already high cost-of-living environment is the sign of a market with underlying strength, where demand is genuine, and buyers are still willing to transact at higher price points.

Population growth, interstate migration, and an unwavering preference for lifestyle-driven locations will inevitably sustain a certain level of demand.

At the same time, some property owners will choose to hold rather than sell, further limiting the availability of stock, maintaining competitive conditions and prices for those in the market.

A sharp downturn appears unlikely while the key drivers of performance – scarcity, location and lifestyle appeal – remain.

TRUSTED ADVICE

As the situation evolves, navigating shifting conditions, understanding buyer sentiment and positioning a property correctly will prove critical for those transacting in the market.

Kollosche agents have access to qualified buyers, strategic campaign management, and informed negotiation skills will help you to achieve a favourable outcome.

Reach out to a trusted Kollosche agent who can guide you through the current market with confidence.