With significant global and economic developments unfolding, this week also marks an important local event, with many clients and members of the Gold Coast community attending the Ray White Bell Group ‘Business Meet Sports’ Charity Lunch. This year’s event features a fireside discussion with former Prime Minister John Howard, following a strong legacy of distinguished speakers including Harry Triguboff, Bruce Mathieson and Clive Palmer. The event continues to support the Surfers Paradise Surf Life Saving Club, raising vital funds for rescue equipment to service the millions of visitors who enjoy our beaches each year.
Turning to the property market, recent commentary has highlighted that underlying fundamentals remain relatively strong. While interest rates have begun to rise, the more significant risks continue to stem from global events rather than domestic conditions. Recent geopolitical tensions are a timely reminder of how quickly external factors can influence economic stability and market confidence.
Nationally, house prices are currently sitting approximately 14% higher than this time last year, marking the strongest annual growth since mid-2022. However, there are now clear signs that this growth is beginning to moderate, particularly across Sydney and Melbourne. Rental growth has also eased, with house rents increasing by 4.8% and units by 4.2% nationally. Notably, the Gold Coast now leads the country in house rental rates at approximately $950 per week, surpassing Sydney.
The level of price growth experienced over recent years was never sustainable indefinitely. A combination of record population growth—exceeding 500,000 people annually—and constrained housing supply created significant upward pressure on prices. While population growth has now slowed, housing construction has not meaningfully improved. Rising construction costs continue to present challenges, particularly within the affordable housing sector, where feasibility remains tight.
This leaves the market in a position where demand is easing, but supply constraints persist.
Looking ahead, one of the key variables to monitor is the global oil market. While current supply is being supported by existing stockpiles, there are growing concerns around potential disruptions to key shipping routes and refinery infrastructure. Any sustained increase in oil prices would have broad economic implications, contributing to inflationary pressure and potentially prompting further interest rate rises globally.
Such conditions would inevitably influence property markets.
As a result, the environment we have experienced over the past several years—characterised by consistent and often double-digit growth—is unlikely to continue in the same way. This shift is already influencing behaviour, with more property owners choosing to bring listings to market and transact while conditions remain favourable.
Despite these changes, two key factors continue to support the Gold Coast property market. Firstly, housing remains an essential need, and demand continues to exceed available supply, providing a strong underlying foundation. Secondly, the Gold Coast has evolved into one of the strongest and most resilient markets in Australia, positioning it well to withstand potential economic headwinds.
From a broader perspective, Australia continues to offer a level of stability, safety and lifestyle that is difficult to match globally. While there will always be challenges, it remains one of the most desirable places to live and invest.
Looking forward, it is important that buyers and sellers adjust expectations. The rapid growth seen in recent years is unlikely to be repeated at the same pace. However, property continues to represent a sound, long-term investment across both owner-occupier and investor markets.
The hope is that global conditions stabilise in the coming weeks, allowing markets to regain greater certainty. Until then, a measured and informed approach will be key.
