Want to know the best place to buy an investment property in Australia right now? It’s the Gold Coast!
Australia’s sixth-largest city offers some great opportunities for the educated property investor. Investors should be encouraged by the current and future projected population and local economy that delivers more long-term stability for the Gold Coast property market.
As one of the fastest-growing cities in Australia, other key market drivers also support the idea that the Gold Coast is ripe for investment opportunities. Key market drivers include high rental yields, infrastructure projects, employment growth, tourism growth and ideal property and apartment shortages that should drive long-term price growth.
This guide will take you through some of the market drivers, research, and suburban areas of growth that will help you with your Gold Coast investment strategy.
The Gold Coast Key Market Drivers
Queensland is currently undergoing rapid growth, primarily centred in South East Queensland.
Key market drivers across the Gold Coast, such as education and health, infrastructure and sport and tourism, received record-high funding from the private and public sectors – other funding projects are expected to continue into the new year. These drivers enforce healthy and strong projections of job growth and the Gold Coast house & apartment prices.
Education & Training
The Gold Coast offers world-renowned education institutions; primary, secondary and universities and TAFEs.
Primary and Secondary Schools
The Gold Coast boasts an exceptional education system with 67 state primary and secondary education institutions and 27 independent or Catholic primary and secondary schools. Some private colleges enjoy a rich history dating back to the early 1900s.
The Gold Coast lifestyle attracts Australia’s best teachers. Many schools provide a rich range of extracurricular learning facilities unique to the area from the environmental science, sporting, arts, academia, tourism and catering industries – making the city a prime learning environment.
In 2021, the Palaszczuk State Government announced the Gold Coast would share in approximately $171 million worth of new education projects, new primary and special education schools, and updates and improvements for Gold Coast schools. This will see welcomed upgrades to schools and job generations.
Universities & TAFES
The Gold Coast offers world-renowned research-intensive universities. The Gold Coast’s universities featured in the 2021 QS World University Rankings include Griffith University, Bond University, and Southern Cross University.
- Fifty thousand students across five campuses;
- Southport campus is the largest;
- Recent development and growth of the Griffith Health Centre, the Griffith Business School building, and Griffith’s Menzies Health Institute Queensland.
- Five thousand six hundred students in total
- a private university with small class sizes, innovative teaching and extensive industry engagement
- renowned for its research, leading a national $14 million sports science project.
- Over three thousand students in total
- Close proximity to the Gold Coast Airport
- partnership with a local aviation vocational education provider
- Fourteen areas rated ‘above world standard.
Increased projections in international student numbers across 130 countries feed significant growth to the sector, which is already thriving.
The Gold Coast Government also adopts an incredible Temporary Graduate Visa (subclass 485) for international students to enjoy three-year post-study work rights prioritising skilled migration to Australia. This gives the Gold Coast a unique advantage over other Australian cities, such as Brisbane, Melbourne or Sydney.
Economy & Infrastructure
The city’s economy has an estimated RRP of $38.1 billion as of June 2020, making 10.24% of Queensland’s total economy. The unemployment rate is at new highs, eventually reaching 6.4% in June 2021.
In April 2021, the employment rate has seen its first dip since March 2020. This decline in economies and employment figures is likely related to Gold Coast tourism loss in 2020.
To boost the region’s economic recovery, the Queensland government has invested $12.5 billion in investment projects, including infrastructure in 2020/21, which will continue into 2022.
The city’s economy has an estimated RRP of $38.1 billion as of June 2020, making 10.24% of Queensland’s total economy. The unemployment rate is at new highs, eventually reaching 6.4% in June 2021.
In April 2021, the employment rate has seen its first dip since March 2020. This decline in economies and employment figures is likely related to Gold Coast tourism loss in 2020.
To boost the region’s economic recovery, the Queensland government has invested $12.5 billion in investment projects, including infrastructure in 2020/21, which will continue into 2022.
Current Major Gold Coast Infrastructure Projects Overview
Projects on The Spit
Several projects on the Spit aim to support jobs and enhance liveability, safety and accessibility, including the Seaway Promenade upgrade, the Moondarewa Spit upgrade and the superyacht berth construction at the Southport Yacht Club.
$2.5 Billion Gold Coast Road Project
The over $2.5 Billion upgrades to the M1 Pacific motorway boosting the M1 capacity from Varsity Lakes to Tugun with six lanes. The project is set to help with future congestion in the regional city and promote hundreds of jobs.
Gold Coast Light Rail Extension
The Gold Coast Light Rail extension is underway, with Stage 3 construction to commence in late 2021. The 6.7. kilometres extension south of the existing tram network will link Helensvale to Burleigh Heads and provide eight additional stations. Stage 4 plans to connect Burleigh Heads to Coolangatta via the Gold Coast Airport with an extra 13 kilometres rail.
Expansion of Lumina Gold Coast Health and Knowledge Precinct
Gold Coast Health & Knowledge Precinct expansion currently sits at $1.4 million out of a total spend of $32.8 million. Lumina at the Gold Coast Health and Knowledge Precinct that already is almost at capacity will expand the cohort coworking, innovation and laboratory spaces.
Arts and Cultural Recovery package
The 2020-21 package totals $22.5 million total aims to reactivate cultural and creative spaces and hubs, such as the construction of the Creative Arts Centre, to create jobs in the arts boosting cultural tourism.
Gold Coast Employment
By the year 2036, the population on the Gold Coast is set to double. It is expected that the number of jobs in areas like Southport will exceed 60,000. The Southport area has the highest concentration of employment in the Gold Coast city.
In December 2020, the Gold Coast’s LGA unemployment stood at 6.9%. However, new infrastructure and precincts currently under development will also bring thousands of job opportunities.
Currently, the healthcare industry represents the city’s largest employment sector. Employment projections into 2036 expect it to remain in its position with other sectors like education and retail, receiving a boost with supporting infrastructure and private and public investments.
INVEST IN THE GOLD COAST
Top 5 Employment Sectors by 2036
| Top 5 Employment Sectors | Proportion of Total |
1 | Health Care and Social Assistance | 14.6% |
2 | Construction | 11.4% |
3 | Accommodation and Food Services | 10.9% |
4 | Retail Trade | 8.7% |
5 | Education and Training | 8.7% |
Source: Urbis
Health
The Gold Coast boasts one the most extensive Health and Knowledge Precincts in Australia and the world providing a medical haven for innovation.
A $1.8 billion allocation for health and hospital services on the Gold Coast supports an extra 1330 nurses over the last 12 months along with 345 extra doctors and 98 extra paramedics.
The healthcare industry represents the city’s largest employment sector employing almost 40,000 skilled workers, with about 9,000 full-time equivalent staff working for the Gold Coast University Hospital. The Gold Coast University Hospital is the city’s largest employer.
The Gold Coast’s Public Health delivers a broad range of secondary and tertiary health services:
- Thirteen community facilities
- Two major allied health precincts
- Two hospitals – the Gold Coast University Hospital and the Robina Hospital.
- The Gold Coast’s incredible private sector is a major medical facility supplement to the private sector with:
- The Pindara Private Hospital
- The Gold Coast Private Hospital providing acute medical care in the home – Queensland’s only
- John Flynn Private Hospital located at Tugun
Tourism
The Gold Coast ranks 5th in the most tourist visited places in Australia. The coastal city’s vibrant tourism sector captures the natural beauty of its beaches and its Hinterland. The city has been widely acclaimed as Australia’s top tourist destination for international and state holidaymakers. It offers both natural and cultural delights.
Relevant tourism statistics:
- From June 2019 to June 2021, over 3.7 million visitors travelled to the Gold Coast;
- In 2021’s first quarter (January-March), Brisbane and the Gold Coast received over 2.4 million interstate and intrastate visits;
- The breakdown is 734 thousand international and 3 million domestic total visitors in 2021 first quarter;
- Due to COVID19, visitors were down 27.4% compared with the over 5.1 million visitors in 2019;
- However, tourism injected over $3.6 billion to the Gold Coast in the year ending June 2020;
- International tourists contributed $962 million, while domestic tourists contributed $2.7 billion.
The Gold Coast International Airport
The Gold Coast International Airport, since 2016, has undergone extension and redevelopment. The final stages of the airport’s development are expected by the end of 2021. The airport offers direct international flights from significant market sources, including China, Japan, South East Asia, Pacific Islands and New Zealand, and domestic flights all across Australia.
Furthermore, the council and the state government $7 million joint venture will link 13 kilometres of the Gold Coast Highway to access the Gold Coast Airport to the heart of the metropolitan area.
Sport
The regional centre is renowned for high-performance sports. The success of the Commonwealth Games in April 2018 highlights the region’s capabilities and reputation for hosting World Stage events.
The city boasts specialised training and sports facilities, leading-edge research and expertise in the sport sciences and innovative industry.
Many of the 2021 projects aim to support and increase female participation and provide access to people with disabilities across sporting clubs on the Gold Coast.
Current Sporting Projects on the Gold Coast
- Currumbin Beach Vikings Surf Club – $2 million allocation to upgrade clubhouse including ground floor disability access;
- Palm Beach Currumbin Rugby Union Club $553,000 allocations to construct female amenities such as indoor gym, change rooms and admin rooms to support female participation;
- Coolangatta AFL: $500,000 allocation to construct female amenities block;
- Robina Raptors Junior Rugby League Football Club: $598,953 allocation to construct female change rooms and amenities.
Brisbane 2032 Olympics
Many people are aware of the rejuvenating power of the Olympics and the economic prosperity and often rise in median house prices in the host city and surrounding regional areas. So, Brisbane’s acquisition of the 2032 Olympics is a blessing for the entire Queensland state, including the Gold Coast.
Interestingly, the athletes’ villages will be spread across Brisbane, the Gold and Sunshine Coasts. As the Gold Coast’s sporting venues already underwent extensive updates for the Commonwealth Games, locals can expect more invested interest in the sporting arenas.
This spells good news for the Gold Coast residents and investors, as tourism, other infrastructure and other benefits will be shared.
The Gold Coast Property Market
Rental Yields Investment Analysis
The residential vacancy rates across the Gold Coast has dropped to a record low at 0.3% for August 2021. These figures indicate a tight rental market, as demand puts pressure on available properties. This is especially true for the Gold Coast in areas offering high infrastructure, employment and amenity.
According to Mark Knight, in the first quarter of 2021 ending March, gross rental yields rose one basis point (bp) – Australian apartments averaging 3.99%.
There is an over-demand of tenants and a lack of stock that has seen short-term and long-term rental price growth upwards of 3.8% for houses and 3.4% for apartments compared to August last year.
Current property statistics by SQM suggests rental costs are at record highs:
- Housing Rent sits at $757 per week
- Units Rent sits at $507 per week
- Apartments at $450 per week (APM)
- Some Luxury apartments in high rises sit at $750 per week
These figures reflect a $100 – $150 increase in rental income from the previous year. Short-term accommodation attracts a significant premium over permanently rented apartments. If you are in the financial situation to acquire property for rental use, now is the time.
Some of the most up and coming Gold Coast region/suburbs for rental yields and investing include:
- Broadbeach Waters
- Main Beach
- Surfers Paradise
- Southport
- Palm Beach
Southport and Broadbeach Waters Rental Statistics
- 14.7% Rental Demand Increase
- 4.5% Annual rental yield for apartments
- 60% Renters
- 20-39 is the average age for young professionals
- The highest concentration of employment in the Gold Coast
Luxury Real Estate & Apartments
According to data property consultancy Knight Frank, Head of Residential Research Australia, Queensland cities have some of the best-performing luxury markets in Australia for the first quarter of 2021.
Luxury residential sales – the most expensive property in a given location seen as the top 5 per cent of each market – surpassed even last year’s record numbers for Queensland. Luxury residential sales are up 17% from the first quarter of 2020.
According to Knight Frank’s forecast, prime residential prices will increase by a minimum of 3% on the Gold Coast and 2% in Brisbane by the end of 2021.
The luxury sales result in a notable surge in global expat interest due to the pandemic and domestic interest from investors and buyers from Melbourne, Sydney and Canberra attributed to the lockdowns and global shift to remote working.
Some of the most up & coming to the Gold Coast areas or suburbs are:
- Broadbeach Waters
- Surfers Paradise
- Southport
- Mermaid Waters
- Main Beach
- Chevron Island
- Palm Beach
Gold Coast Apartments
In the 2021 first quarter ending March, median apartment values were up 1.8% in Australia, establishing a 2.6% rise from the previous year to $584,500.
In first-quarter of 2021, there were 26,749 apartment sales across Australia. The average number of days on market for an Australian apartment was 122 days in that same quarter.
On the Gold Coast, Apartment Capital Growth rose 9.5% over the year ending March 2021. The median value in the first-quarter of 2021 was up 2.7% to a median value of $460,000.
Gross rental yields for apartments remained consistent at 5.90% for the first quarter of 2021 ending March. Rental increase for apartments rose 3.4% where median rents at $450 per week (APM).
Apartments 31 March 2021 | Gold Coast |
Median Value | $460,000 |
Capital Growth – Annual | 9.5% |
Sales Volume – Annual | 9,062 |
Sales Turnover – Annual | 31.2% |
Ave. Days in Market | 128 |
Gross Rental Yield | 15.90% |
Median Weekly Rent | $450 |
Rental Growth – Annual | 71.% |
Source: Knight Frank Research
Integrated Resorts Development Investment
The Gold Coast is one of two locations currently in Australia alongside Brisbane that offers Integrated Resort Developments.
The Star Gold Coast and Queens Wharf in Brisbane are authentic Integrated Resort Development in Queensland. However, there are several residential developments under construction in 5-Star Hotels. The Star Gold Coast and the Queen’s Wharf in Brisbane belong to the same project and development team. It is unlikely that Australia will see many new Integrated Resort Developments created in the future – establishing even greater demand.
The Star Gold Coast’s proposed master plan for Broadbeach Island heralds a 4.5-star hotel with apartment towers, including first and second stages, The Star Residences & Epsilon Star Residences, which are now selling.
Another three stages are currently in planning stages, so when complete, The Star Gold Coast’s integrated-resort complex will feature five residential towers and associated resort facilities on Broadbeach Island.
Future residents can expect exclusive hotel-like privileges and services, ocean view apartment views, luxury amenities and facilities, and a thriving precinct of new restaurants, cafes & bars, entertainment and retail.
HOTELESQUE PRIVILEGES!
How do I invest in the Gold Coast property market?
If you decide that the Gold Coast is the prime location for your forever home or future investment property, it’s time to start your journey with Integral Development Group.
If this is your first investment property or a first-time home buyer, we recommend you read our First Time Buyers Home Loan Guide and First Time Buyers Deposit Scheme Guide.
Next, visit our property listing page to view our extensive listings in the most sought after areas. Whether you are a developer, a broker, a real estate investor, or someone looking for the home of your dreams — achieving your goals in real estate depends on authenticity. And, that is our promise to you at Integral Development Group.