Gold Coast overtakes Sydney as Australia’s most expensive city apartment market amid Queensland property boom

The Gold Coast has overtaken Sydney to become Australia’s most expensive big city apartment market thanks to strong population growth, downsizing sea changers and hungry investors, new data shows.

Real estate group Ray White has revealed the midpoint price for a unit in this corner of South-East Queensland hit $956,000 in September, putting it ahead of Sydney on $927,000, with values more than doubling in a decade.

But Sydney wasn’t even Australia’s second most-expensive apartment market with the Sunshine Coast in second place with a median price of $928,000.

Ray White chief economist Nerida Conisbee said strong population growth in South-East Queensland was driving unit values, especially on the Gold Coast which had traditionally been seen as an affordable alternative to Sydney.

“Migration continues to be a major factor. The region is attracting new residents from across Australia and overseas, drawn by lifestyle, climate, and improving infrastructure,” she said.

“Population growth in the Gold Coast and broader South-East Queensland remains among the fastest in the country, yet new housing supply is failing to keep pace.”

Sea changers

Ms Conisbee said sea changers from Sydney and Melbourne and investors had been driving the surge in Gold Coast unit prices.

“Demand is being led by downsizers and interstate buyers from Sydney and Melbourne who are willing to pay premium prices for waterfront living,” she said.

“Developers have responded with a wave of high-end apartment projects offering resort-style amenities and large floorplans, a product now synonymous with the modern Gold Coast skyline.

“Investor lending in Queensland has now reached record levels, with the Gold Coast one of the key beneficiaries. Rising rents and tight vacancy rates continue to attract investors seeking both income and capital growth potential.”

During the past decade, apartment prices in the south-east of Queensland have more than doubled, with Gold Coast prices soaring by 101 per cent as Sunshine Coast values surged by 121 per cent.

Beach prices

The growth was strongest near the beach. Currumbin and Tugun unit prices soared by 134 per cent to $1.3 million, which is comparable to the Gold Coast’s midpoint price for a house.

Main Beach was the Gold Coast’s most expensive apartment market at $1.73 million, following a 103 per cent increase over a decade.

The focus on high-end apartment developments has seen builders neglect the more affordable end of the Gold Coast unit market.

“At the same time, it has become increasingly difficult to build affordably,” Ms Conisbee said. “While construction costs are starting to moderate nationally, they remain high in Queensland, limiting the viability of lower-priced developments.

“This means new stock under $750,000 is now almost impossible to deliver without significant incentives or planning flexibility.”

Gold Coast councillor Bob La Castra, a former actor on Neighbours, downplayed the suggestion too few new affordable apartments were being built, with 80 cranes now dotting the skyline.

“No, I wouldn’t say it’s just high end at all. There’s a lot of mid and lower-priced housing across the city,” he told The Nightly.

But Mr La Castra acknowledged the housing shortage crisis on the Gold Coast was hurting the likes of hospitality workers and nurses.

“There’s definitely a concern with affordable housing, there’s no doubt about that,” he said.

“We have so many people working in the service industries as well who are not particularly well paid so it is a major problem for us because we need to be able to retain those employees.

“If they can’t afford to live here, of course, that’s going to put pressure on being able to fill those jobs.

“It’s not just the younger people. There are quite a few people in that 50 to 60 age group that are really struggling.”

In Sydney during the past decade, apartment prices have only grown by 30 per cent or $215,000.

By comparison, Brisbane apartment prices since 2015 have grown by 79 per cent to $768,000.

Adelaide had even stronger growth of 90 per cent, taking it up to $673,000.

Perth prices have risen by 47 per cent to $658,000 while Melbourne values have gone up by 28 per cent to $645,000.

Across Australia’s capital cities, apartment values have grown by 47 per cent in a decade to $717,000, with the Ray White data sourced from Neoval figures on land title sales.

Houses versus units

Sydney had the biggest gap between detached houses and units, with the median house price of $1.69 million well above the equivalent unit price of $927,000.

By comparison, the Gold Coast had a mid-point house price of $1.32 million, compared with $956,000 for units.

The Sunshine Coast’s median house price of $1.26 million was well above the $928,000 median for apartments.

In another part of south-east Queensland, Brisbane’s median house price of $1.11 million and a mid-point unit price of $768,000.

Melbourne had the cheapest median unit price of $645,000 among the State capital cities and a mid-point house price of $1.06 million.

Adelaide’s median house price was at $960,000 compared with $673,000 for units.

Perth had a middle house price of $980,000 which was above the middle unit price of $658,000.