The Gold Coast is starting to see a return of investors to the market as they seek to capitalise on high rental yields and price growth in the region. 

Increased competition, rising interest rates and changes to rental legislation unfavourable to landlords led to many investors exiting the market in recent years. 

But investor activity has now started to ramp up again, spurred by the convergence of key factors, including the potential for long-term capital gains off the back of a predicted population boom. 

An already rapid rise in the region’s population has led to sustained demand for rental properties. Coupled with limited supply this has worked to drive up rental yields, positioning the Gold Coast as one of Queensland’s most lucrative investment areas.

According to Kollosche Managing Director Michael Kollosche, fewer barriers to entry, such as less competition and stabilised interest rates, have helped to tempt investors back to the market.

“Investors are recognising the potential for solid returns, particularly as rental prices continue to rise alongside demand for well-located, quality homes and apartments,” he said.

“The area’s infrastructure development and upcoming projects are also contributors, assuring investors of future growth.”

What are investors buying?

The strongest interest is in low-maintenance properties that offer immediate rental potential, including modern apartments and new developments and townhouses in proximity to beaches, shopping hubs and popular dining and entertainment precincts. 

The market is also experiencing increasing demand for properties with unique features, such as water views or proximity to elite schools.

Broadbeach Waters, Mermaid Beach and Palm Beach are particularly popular with investors, drawn by the blend of lifestyle and rental appeal these areas provide. 

According to CoreLogic, the average rental price for a house in Broadbeach Waters is $1,300 a week, with units $700 a week, up 13.5 per cent and 10.2 per cent, respectively, over the past 12 months.  

In Mermaid Beach the weekly rent is $1,275, up 28.1 per cent on the same time last year. Units rent for $700 a week, up 6.6 per cent. Meanwhile, Palm Beach tenants pay an average of $990 per week, up 10 per cent compared to 12 months ago, with units at $700 a week, representing a 9.4 per cent lift. 

Newer apartments, which often come with high-end amenities, are especially attractive for investors seeking to meet the demand from professional tenants and executive renters. For those looking at long-term gains, land and renovation projects in key locations also remain viable options.

With the Gold Coast’s enduring appeal and significant growth potential, investors have ample opportunity to secure properties that yield stable returns in well-chosen locations. The key lies in a strategic approach to pricing and a focus on providing properties that meet the evolving needs of the market.

If you are considering buying for investment, reach out to a Kollosche agent, who will outline the options that best align with your goals.