Market Insight

P O S T P A N D E M I C - B O O M

Every property market around the world follows a predictable cycle, from boom to bust. As does the residential Real Estate market in Southeast Queensland. Specifically on the Gold in which we are currently in the midst of experiencing the biggest boom since 1989 in which prices rose 30%. In the world of Real Estate we call this a “Sellers’ Market”, this is because all key indicators are in the favour of those who are currently selling their homes. ⁠

Demand is currently explosive. We are seeing demand deriving from three main sources, the largest being interstate migration. We have always noticed this but now more so than ever. “Queensland gained the most people from net interstate migration (+7,000) over the March 2021 quarter, while Victoria lost the most (-4,900), closely followed by the New South Wales (-4,500). Also noting that the Northern Territory suffered a net migration decrease of 410 people (ABS, 2021). This is translating to very large turnouts at open homes, multiple offers and buyers registered at auctions. ⁠

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Secondly, interest rates are currently at an all-time low with the RBA deciding to hold the official cash rate at 0.10% on November 2nd 2021. This has created an average variable home loan rate of 3.93% the lowest found being as little as 1.93% (Finder, 2021). This is allowing local buyers and interstate buyers to blow out their budgets. We are seeing this firsthand with our buyers commonly changing their search criteria adjusting their budgets up by $100,000’s and not the type of property they are looking for. This has a flow-on effect that is directly increasing the sale prices of homes. ⁠

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Lastly, ex-pats are returning in flocks to Southeast Queensland and spending big. They are returning because markets such as the Gold Coast are seen as an economic and lifestyle haven. Having come from cities such as London, Tokyo and Los Angelos where the median house prices are exorbitant. They see a lot of value in the Gold Coast and are more than happy to pay a premium to secure a property.

There are a few things to note during a boom and these include rapidly rising property prices, shortage of tradespeople, shortage of building supplies, more buyers than sellers, intense media interest and ridiculous sale prices for homes! We are seeing all of these in the market now. There is no doubt that we are currently in a boom. The key question is what will the futr hold? How long until we start to see a shift towards the market slowing down.

For an insight on the futr of the market please contact us now. We can delve into your home, seeing where it sits in the market today. 🏡