The Gold Coast property market is currently navigating a highly dynamic and evolving environment, driven by a convergence of construction pressures, labour shortages, and future infrastructure demand.
One of the most significant factors shaping the market right now is the growing competition between private development and government-led construction projects. As we move closer to the 2032 Brisbane Olympic and Paralympic Games, government infrastructure projects are accelerating, drawing heavily on the available labour force.
Naturally, subcontractors and trades are gravitating towards these government projects. They offer scale, funding security, and clearly defined delivery pathways. While this is positive for long-term infrastructure outcomes, it is placing increasing pressure on private residential development.
We are already seeing the effects of this shift. Project delays, cost escalations, and in some cases, developments being deferred or abandoned altogether are becoming more common. While construction costs showed signs of stabilisation earlier this year, recent global tensions have once again introduced upward pressure, particularly through fuel and material costs.
Looking ahead, these pressures are unlikely to ease in the short term. In fact, developers are now moving quickly to commence projects ahead of further labour constraints, resulting in a surge of new development announcements across the Gold Coast.
However, the reality is clear: not all of these projects will proceed within their intended timeframes. The combination of limited labour availability, rising costs, and competing priorities will inevitably lead to delays across the development pipeline.
From a property perspective, this has important implications.
As supply struggles to keep pace with demand, particularly in the new housing sector, we can expect to see continued upward pressure on prices over the coming years. This is already influencing buyer behaviour.
Completed property is becoming increasingly attractive.
For buyers, it offers certainty, of price, certainty of delivery, and the ability to move or lease immediately without exposure to construction delays or cost fluctuations. In the current environment, that level of certainty is becoming a significant advantage.
Interestingly, recent data highlights the scale of development activity already underway. The Gold Coast currently has 75 active cranes, surpassing Brisbane’s 64. While this reflects strong local momentum, it will be important to watch how this balance shifts as Olympic-related development in Brisbane intensifies in the years ahead.
Turning to broader market conditions, Ray White’s national data is showing signs of stabilisation following recent global uncertainty.
Auction clearance rates have improved from 55.2% two weeks ago to 67.5% last week, bringing them back in line with the same period last year, a notably strong market. Buyer activity remains consistent, with an average of 2.4 active bidders per auction nationally, indicating that while the pace of the market may have moderated, competition remains present.
We are also seeing a modest increase in auction volumes, as some vendors bring forward decisions ahead of potential changes to capital gains tax and negative gearing settings as the end of the financial year approaches.
What continues to stand out is the performance of auctions as a method of sale.
In the current market, auctions are consistently delivering stronger outcomes than private treaty, both in terms of success rates and time on market. This is particularly relevant as buyers grow increasingly cautious of properties priced above perceived market value, which can result in extended negotiation periods and reduced engagement.
At Ray White, we remain proud to lead the way as the number one auction network on the Gold Coast, with local results continuing to outperform national benchmarks across both clearance rates and bidder participation.
Finally, I’m pleased to share the success of our recent Ray White Bell Group Business Meets Sport Lunch, which raised $122,000 for the Surfers Paradise Surf Life Saving Club. These funds will go towards critical rescue equipment, supporting the essential work of keeping our beaches safe as visitor numbers continue to grow each year.
As always, the market continues to evolve in response to both local and global influences. While conditions can shift quickly, the fundamentals of the Gold Coast property market remain strong, underpinned by ongoing demand, population growth, and long-term infrastructure investment.
I’ll continue to keep you updated as conditions develop.
