Posted: 18th November 2024
Posted in: News
Gold Coast Real Estate: October 2024 Month in Review
As we look back at October, the Gold Coast Real Estate market reveals a landscape shaped by evolving buyer preferences and robust government support for first homebuyers. With various incentives and price caps, the market is witnessing dynamic shifts, particularly among first-time buyers navigating the challenges of rising property prices.
Government Support for First Homebuyers
Queensland’s first homebuyers have access to several significant financial supports. The First Home Owner Grant offers $30,000 for contracts signed between November 20, 2023, and June 30, 2025, while those who signed contracts before this date can receive $15,000. The state has set a $700,000 cap on the purchase price for first homebuyers, which exempts them from stamp duty and lenders mortgage insurance (LMI). A minimum deposit of five percent is required, and among the big four lenders, three are approved for this scheme.
The Housing Australia First Home Guarantee Scheme is also noteworthy, with 35,000 places available for the 2024-2025 period. This scheme allows eligible homebuyers to apply for a loan through participating lenders without the burden of LMI, by providing a guarantee of up to 15% of the loan value. Eligibility extends even to those who have owned a home previously but haven’t for the last ten years.
Moreover, the First Home Concession for transfer or stamp duty offers additional relief for homes purchased up to $800,000. This concession recently underwent changes, with varying amounts depending on the purchase price, allowing many first-time buyers to navigate the costs of entering the property market more comfortably.
Market Trends October 2024: Gold Coast
The support mechanisms have catalyzed strong activity in the sub-$700,000 market, particularly in the western-central Gold Coast localities like Carrara, Nerang, and Pacific Pines. These areas are experiencing heightened interest, especially in the unit market. For example, the townhouses at 1 Norris Street, Pacific Pines, are seeing significant price increases, with sales recorded between $620,000 and $747,000 over recent months. However, agents report a leveling off as buyers reach their financial limits, while vendors are keen to capitalize on the available concessions.
Detached houses in Carrara are still out of reach for many first homebuyers, with entry prices around $800,000. Meanwhile, the unit market remains competitive, with first homebuyers often going head-to-head with investors.
Northern Gold Coast
In the northern Gold Coast, first homebuyers are increasingly opting for joint ownership arrangements or parental guarantees, utilizing existing property equity to enhance loan capacity. The $800,000 to $1 million price range remains competitive, with low stock and high demand. Properties that are priced right are generating significant interest, often selling within a week due to multiple offers.
The ongoing rise in property prices has prompted first homebuyers to reassess their expectations. Many are now considering smaller homes or properties in less sought-after areas, driven by the dual pressures of affordability and changing work-from-home trends. The shift towards homes with office spaces and good internet connectivity is becoming a priority for this demographic.
Affordability Challenges and Growth Corridor Insights
The Gold Coast growth corridor has seen a decline in first homebuyer activity, with the market now primarily driven by those upgrading their homes. Rising costs associated with land and building packages are making it difficult for younger buyers to enter the market. Many are pivoting towards purchasing established townhouses or smaller homes priced below $750,000.
The most affordable options for new home construction are smaller lots priced around $300,000, which can lead to a total investment of $600,000 to $700,000. However, these properties are often situated further from urban centers, requiring longer commutes.
While opportunities for first homebuyers in the market are dwindling, there are still options available for those willing to consider renovated properties or those located in emerging suburbs.
October has highlighted the complexities of the Central Gold Coast real estate market as first homebuyers navigate a landscape of rising prices and evolving expectations. With continued government support and a competitive property market, many are finding innovative ways to secure their first homes. As we move forward, the market will likely continue to adapt, responding to both buyer needs and economic conditions.