Nathan’s Market Wrap-up

In the 2022-2023 financial year the Gold Coast property market faced some challenges.

This was namely due to the 12 cash rate rises reducing buyer affordability and decreasing borrowing capacity by over 40%. However, limited property supply prevented both a market crash and significant drops in property values. Demand for turnkey ready properties increased, driving up prices, while instability in the building sector caused a decline in demand for land purchases.

Looking ahead to the remainder of 2023, over 800,000 mortgages in Australia are expected to shift from fixed to variable rates, potentially leading to mortgage stress and an increased chance of distressed selling. Additionally, if the number of properties on the market increases with buyer demand remaining consistent, there could be a softening in prices. This could create a more balanced market, giving buyers more options and potentially moderating price growth.

- Nathan