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Sammy Burton at home in Mudgeeraba, which was been named one of the Coast’s top growth suburbs in 2021. Photo: Scott Powick NEWSCORP
THE Gold Coast’s top growth suburbs have been revealed, as house prices surge to new highs spurred by frenzied buyer demand amid the lowest interest rates in history.
And while prestige property smashes sales records, the Bulletin can reveal the Coast’s hidden gold where houses are selling for below the city’s median price in suburbs with double-digit growth or just below.
PRD Real Estate’s Major Market Update for the first half of 2021 saw property values rise by more than 16 per cent over the past five years in some suburbs, while the CoreLogic Home Value Index also out this week reported new sales records reached across the state.
Miami posted the Coast’s highest growth in house price sales in 2020.
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Miami and Surfers Paradise came out on top with median house price growth in 2020 of 18.7 per cent to $926,000, and 13.3 per cent to $1.7m respectively, according to PRD’s breakdown of suburbs.
But PRD chief economist Diaswati Mardiasmo said third-placed Mudgeeraba was one to watch, with strong price growth of 12.5 per cent but a median house price of $675,000 sitting just below the Coast average.
This five-bedroom home at 13 Amulla Court in Mudgeeraba is for sale for $1.499m.
“The Gold Coast LGA median house price is $690,000, so quite a few of the growth suburbs we have identified are comparatively affordable, in the sense that they are lower in price,” Dr Mardiasmo said.
“Some, like Ashmore, Arundel, and Mudgeeraba have a lower median price, close to or just over double-digit capital growth between 2019 and 2020, a higher rental yield than the Gold Coast average of 3.9%, and a vacancy rate that is comparable to the Gold Coast LGA (0.7%) – so it’s a win-win all around.”
Ashmore’s median house price rose 9.4 per cent to $650,000, while in Arundel growth was 9.1 per cent to $649,000.
This renovated four-bedroom home at 1/1 Guyra Avenue in Burleigh Heads just sold for $1.75m by Ray White Broadbeach agent Troy Fitzgerald.
Also on the top ten list were Burleigh Heads, Currumbin Waters, Burleigh Waters, Southport, and Coomera.
Coastwide, suburbs located between 5 to 10km from Southport saw the biggest growth, according to the PRD report which divided the city into three zones, determined by each suburb’s proximity to the CBD where population and commercial activity was concentrated.
PRD nationwide chief economist Diaswati Mardiasmo said median house prices were still below the city’s average in some of the top growth suburbs.
Median house prices in the middle ring where growth was highest rose 16.4 per cent to $710,000 in 2020, while in the outer ring (10-20km from CBD) prices grew by 14.7 per cent to $631,000.
Prices in the inner ring of suburbs located less than 5km from the CBD climbed 8.9 per cent, reaching a median of $735,000.
“Stock levels in all rings have declined, which has pushed prices up, benefitting vendors,” Dr Mardiasmo said.
“The property market has been supported by Government stimulus which has led the market to excel amidst COVID-19 restrictions.”
Sammy Burton bought a four-bedroom A-frame home on acreage in Mudgeeraba in 2020, converting an existing shed on the property to launch her pet grooming business, Furbalicious Pet Care, in May.
Sammy Burton bought acreage in Mudgeeraba and opened a dog grooming business. Photo: Scott Powick NEWSCORP
In hindsight, Ms Burton said she potentially missed out on a higher price for her former Capalaba home south of Brisbane when she sold before the post COVID-property boom, but was buoyed buying into one of the Coast’s top growth suburbs.
She said many residents were now struggling to find affordable houses to rent or buy in Mudgeeraba amid the area’s surging popularity.
“We were selling our home just as COVID was starting and we lost money because of that, so I kind of wish we’d held on because the prices now are so high, but you win some you lose some, and now it seems to be quite hard to get into the market in Mudgeeraba. It’s become very competitive,” she said.
Ms Burton bought said she was drawn to the village atmosphere of the suburb, which is tucked just off the M1 on the fringe of the hinterland.
“We weren’t looking for a big house, but we wanted more land, so now we’ve got two acres and three dogs,” Ms Burton said.
“I moved here for the lifestyle and also to be able to do what I love and open a boutique dog grooming salon and I now have quite a few regulars and new customers who have moved to the area.”
This four-level home with 360 degree ocean views at 16 Brakes Crescent Miami is for sale for $4.65m
CoreLogic head of research Tim Lawless said Queensland’s market recovered swiftly post-pandemic, and showed no signs of slowing. Home values were 4.4 per cent higher than the previous record hit in April 2020.
“Low rates are definitely a big part of what’s driving conditions but also Queensland is benefitting from interstate migration,” Mr Lawless said.
“This is a rebound which is being driven by owner-occupiers, which makes it pretty different to previous cycles in the housing market.
The results come as latest statistics from the Australian Bureau of Statistics put home lending at a new record high of $26.01 billion nationwide, up 31.2 per cent from the previous year.
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The biggest spike in home loans was to owner-occupiers, with another record of $19.94 billion in finance settled in December, up 38.9 per cent year-on-year, while the number of home owners expected to refinance with a new lender was forecast to grow by a further 9 per cent.
Real Estate Institute of Queensland Gold Chair zone chair Andrew Henderson said growth suburbs including Ashmore and Arundel held plenty of potential for buyers and investors willing to look beyond the better-known beachfront postcodes.
“Some of those suburbs in that inner ring, Ashmore and Arundel, are prime for redevelopment,” Mr Henderson said.
“They are existing suburbs where you already have the infrastructure, like the the shopping centres and the schools, and there also tends to be single housing lots and larger blocks of land where there is the potential to subdivide and drive that future price growth.”
TOP 10 GROWTH SUBURBS
suburb median house price price growth
Miami $926,000 18.7 per cent
Surfers Paradise $1.7m 13.7
Mudgeeraba $675,000 12.5
Burleigh Heads $965,000 11.7
Currumbin Waters $782,000 10.6
Ashmore $650,000 9.4
Arundel $649,000 9.1
Burleigh Waters $900,000 8.4
Southport $622,000 7.2
Coomera $510,000 7.1
Source: PRD Real Estate