Gold Coast property investment update 2022

Here we explore the property market and key areas to understand the investment benefits that are available in getting you prepared to start investing in the Gold Coast.

Updated June 2021

Gold Coast Housing Market

As one of the top destinations in Australia for internal migration for the past few years, it is no surprise that the Gold Coast’s housing market is currently in the midst of a boom.

In March 2021, the median house price in the Gold Coast reached a record high of $749,950 - a 15.4% increase compared to March 2020.¹ While house prices are experiencing record highs, units in the Gold Coast are currently sitting at a median price of $479,400 - a 1.2% decline compared to the previous quarter.²

While other housing market’s across the country saw declines in 2020 due to COVID-19, the Gold Coast area benefitted from the rise of working from home culture due to the lifestyle it offers.

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Gold Coast Economy and Infrastructure

The Gold Coast is Australia’s sixth largest city³ and one of the fastest growing. As of June 2020 the city's economy has an estimated Gross Regional Product (GRP) of $38.1 million, making up 10.24% of Queensland’s total economy.⁴

As a city that is predominantly known for its booming tourism industry, it’s no surprise that much like many others around the world Gold Coast’s economy saw the negative impacts of COVID-19, especially in terms of the unemployment rate. As the below graph indicates, Gold Coast’s unemployment rate has soared to new highs, eventually reaching a peak of 7.2% in March 2021.⁵ In April 2021, Gold Coast’s unemployment rate recorded its first decrease since March 2020, showing promising signs for the city’s future.

Source: Unemployment Rate, Participation Rate & Employment Rate Time Series

This decline in economy and employment figures can be attributed to the loss of tourism Gold Coast experienced in 2020. Compared to 2019, the Gold Coast experienced a 39% decline in total visitors, most of this due to the loss of daytrips and interstate visitors caused by border closures and lockdowns.⁶

As Gold Coast’s economy is heavily reliant on domestic tourism compared to international visitors, 2021 aims to be a good year for the city’s economic growth as the state borders are beginning to open up and domestic travel is increasingly being encouraged.

In order to boost the economic recovery of the region, the Queensland government have invested $1.146 billion of capital investment in 2020-21.⁷ Through identifying 24 infrastructure projects to be prioritised as part of their Gold Coast Regional Recovery Action Plan,⁸the government aims to build opportunities and create jobs to fuel the growth of the Gold Coast’s economy.

Key infrastructure projects as part of Gold Coast’s recovery plan include:⁹

Pacific motorway (M1) upgrades

Construction planned to improve the roads on the M1 in multiple Gold Coast areas, such as Yatala South (Exit 41), Pimpama (Exit 49), Oxenford (Exit 57), and Varsity Lakes to Tugun.
Projects on The Spit

Fast Tracking projects to support jobs and enhance livability, safety and accessibility on the Spit. Projects include improvements to Seaway Promenade and $5m to the Moondarewa Spit upgrade and $2m to deliver a superyacht berth at the Southport Yacht Club.
Arts and Cultural Recovery package

$15.4m in 2020-21 invested to reactivate cultural and creative spaces, creating jobs in the arts and boosting cultural tourism.
Gold Coast Light Rail

$709.9m to extend the light rail from Broadbeach to Burleigh.

Gold Coast Rental Yields

Rental yield is one of the most important figures to understand when investing in a property. It is essentially the amount of money you make on an investment property by measuring the gap between your overall costs and the income you receive from renting out your property.

By having an understanding of the rental yield in the area you want to invest in, you will be better equipped to find the right investment property for your situation. As of June 2021 both the house and unit markets in the Gold Coast have recorded strong rental yields of 4.7 and 5.4%, respectively.¹⁰

Property investor guide

If you are looking to invest in property or simply exploring the possibilities, this guide will help you navigate the steps involved to kickstart your property investment journey.

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Best Suburbs to Invest in:

Surfers Paradise, 4217

Key Stats	House	Unit
Median buying price	$1,800,000	$417,750
Median rent (per week)	$638	$420
Rental Yield	1.8%	5.2%
Distance to CBD	4.3km

Source: https://www.realestate.com.au/neighbourhoods/surfers-paradise-4217-qld

Surfers Paradise has long been a popular coastal city in Australia due to being the major city of the Gold Coast region. Located an hours drive from Brisbane, Surfers Paradise is quickly becoming a popular destination, offering a beach lifestyle mixed with a growing business centre. With low unit prices and high rental yields, Surfers Paradise is becoming an ideal destination for investors.

Miami, 4220

Key Stats	House	Unit
Median buying price	$1,020,000	$615,000
Median rent (per week)	$625	$500
Rental Yield	3.2%	4.2%
Distance to CBD	10.1km

Source: https://www.realestate.com.au/neighbourhoods/miami-4220-qld

Located a bit further out from Surfers Paradise, but still within close proximity to the CBD, Miami is a great destination for investors that is showing strong growth rates. This suburb has experienced a 10.3% compound growth rate over the past 5 years in their housing market and an 8% increase in unit prices.¹¹

Southport, 4215

Key Stats	House	Unit
Median buying price	$680,000	$378,500
Median rent (per week)	$500	$420
Rental Yield	3.8%	5.8%
Distance to CBD	7.5km

Source: https://www.realestate.com.au/neighbourhoods/southport-4215-qld

Similar to Miami, Southport is another suburb that is still within close proximity to the CBD buth with a more affordable house and unit price. The affordability of Southport’s property market along with the high rental yields in units especially is making this suburb a great location for investors.

How to Invest in the Gold Coast Property Market?

Once you’ve decided Gold Coast is the right market for you to invest, it’s time to look at getting an investment home loan to start your journey.

If this is your first investment property we have created a beginners guide to outline the main factors you need to consider and the costs involved with an investment property here.

When you are ready to start your investment home loan application, it is best to understand what type of loan is right for you and the associated rates. You can compare investment loans across multiple lenders from our panel here or speak to a Mortgage Choice Broker who can go through your situation, compare the loan available and find the loan that’s right for you.

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Of course, this is only a starting point, as there are many areas in Gold Coast that can offer similar or greater investment opportunities. If you’re interested in investing in the Gold Coast and are ready to get the process started, it is best to speak with your local Mortgage Choice broker to get expert advice on your property investing journey.