The Gold Coast has evolved into one of the most vibrant and economically dynamic cities in Australia.
Recent figures reveal the Gold Coast economy is now growing faster than any capital city in the nation. According to data presented at the recent Economic Health Check Breakfast, the city’s gross regional product increased by 15.1% between 2021 and 2024, outperforming every capital city in Australia. The closest performer was Canberra, while the City of Sydney recorded growth of just 7.3% over the same period. The figures highlight just how dramatically the Gold Coast economy has changed in recent years.
A particularly noteworthy shift is the city’s increasingly diversified economic base. Tourism, which historically dominated the Gold Coast economy, is no longer among the top five economic drivers. Instead, sectors such as construction, health and education have emerged as the leading contributors. Construction alone now injects approximately $4.5 billion annually into the local economy, making it the city’s largest economic driver. Health and knowledge industries follow closely behind, contributing an estimated $4.3 billion each year.
This diversification represents a significant shift from the past, when the city relied heavily on tourism and was far more vulnerable to economic cycles. Moving away from reliance on a single primary sector has created a far more balanced economic structure and a stronger foundation for sustainable long-term growth. The strength of the local economy is clearly reflected in the property market.
Over the past year, the average house price on the Gold Coast increased by approximately $149,000 to reach $1,397,000. Unit prices have also continued to climb and are now approaching the $1 million mark, sitting just $47,000 below that level. According to the latest PropTrack Home Price Index, the Gold Coast has now cemented its position as Australia’s second most expensive property market.
The median overall dwelling price, combining houses and units, has reached approximately $1.15 million. This is a remarkable shift considering the Gold Coast was once widely viewed as a regional lifestyle market rather than a major city.
To put that figure into perspective, the Gold Coast’s average dwelling price of $1.15 million now compares with Sydney at approximately $1.23 million. The gap between the two markets has narrowed significantly, and it will be interesting to see how long it takes for that difference to reduce further. While these figures demonstrate strong long-term growth, there are also signs that the market may face more challenging conditions ahead.
A new analysis drawing on data from CoreLogic, Finder, and the Reserve Bank of Australia shows that Australian households now require around $10,000 per month, or $120,000 annually in gross income, to live comfortably in the more affordable suburbs of major cities. To be considered well-off in those same areas, households would require closer to $15,000 per month, or $180,000 annually in gross income. In some of Australia’s most expensive suburbs, including areas such as Bellevue Hill in Sydney and Toorak in Melbourne, households may require incomes approaching $95,000 per month to maintain that same level of financial comfort. In this context, living comfortably means that after covering essential living expenses, households still retain approximately 30% of their income.
These figures highlight the growing pressure many households are facing as living costs continue to rise. For the property market, this means some buyers may be pushed out of the market altogether, while others may need to adjust their expectations and consider locations or property types they may not have previously considered. Cost-of-living pressures also reduce the amount households have available to service loan repayments, which in turn reduces borrowing capacity.
Higher interest rates have further limited what buyers can afford compared with what they could have borrowed prior to the recent rate increases. Taken together, these factors suggest that the brakes may now be on for significant price growth in the short term. Until incomes rise, living cost pressures ease and interest rates reduce, the property market is likely to experience a period of moderation rather than the rapid growth we have seen in recent years. When that shift occurs remains to be seen.
On another note, tickets are selling quickly for the upcoming Ray White Bell Group Business Meet Sports Lunch. This event will feature a fireside conversation with former Prime Minister John Howard, offering a unique insight into his life, leadership journey and perspectives on the issues shaping Australia today.
As Australia’s second longest-serving Prime Minister, John Howard played a pivotal role in shaping modern Australia and the discussion promises to be both fascinating and insightful. The event will also feature the newly structured Gold Coast Titans ownership group, with Matty Johns and other co-owners sharing their journey and vision for the future of the club.
It promises to be an afternoon filled with perspective, inspiration and engaging conversation. Whether you are attending individually, joining friends, or hosting a table for clients or colleagues, I encourage you to secure your tickets soon as capacity is limited. Booking details are available via the link provided. www.rwbellgroupevents.com
That’s it for this fortnight’s report. I look forward to bringing you another market update in two weeks’ time.
