The latest figures from the Domain Group’s house price report released on Thursday reveal the median house price has fallen by 0.2 per cent over the past six months to $618,000. The last the time house prices moved backwards over a quarter was September 2013 when they declined 0.6 per cent.
Although small, the negative movement is in stark contrast to last year’s results which put the Gold Coast up in lights; the glitter strip outperformed every other region in Queensland last year, growing by nearly 8 per cent.
Local agents say they are not surprised but stress it is a “blip” resulting from the Commonwealth Games, rather than a trend which will continue.
“Most of the local buyers went away during the (Commonwealth) Games, which also happened to coincide with school holidays,” says Kollosche Prestige principal Michael Kollosche.
“Once you factor that in, it’s probably the reason we have that slight trend downwards in price.”
Jesse Willcox, of Lambert Willcox, says his agency was prepared for a slower quarter.
“We certainly anticipated this slow down after the Games because so many of our buyers are local. The mass exodus of locals from the Coast was well publicised,” he says.
“That being said, we’ve just had a record month and sold $10 million worth of property in the past two weeks, so go figure.”
It had been nothing but good news for the Gold Coast economy and, in turn, the local property market of late. Recently it was revealed a $30 billion pipeline of private and public development would be rolled out on the Gold Coast over the next decade, putting paid to criticisms it would suffer a post-Commonwealth Games slowdown.
And last week Domain reported more than $20 million in luxury Gold Coast property had sold since the the Commonwealth Games wrapped up, including Australia’s most expensive golf course-fronted house and a record $11.6 million Hedges Avenue beach home.
Moreover, the Gold Coast’s median house price is still up 3 per cent on the same time last year.
Domain data scientist Dr Nicola Powell says while the prospects for the Gold Coast market are still strong, it’s likely growth will remain subdued in the short term.
“We’re not going to see the bomb fall out of the property market by any means,” she says.
“What’s important is how the economy transitions away from the Games. We haven’t seen negative movement like this for the Gold Coast housing market since 2013 — whether that continues or picks up again remains to be seen.”