The Gold Coast is set to benefit from an increasing share of overseas migration to Australia, helping prices there remain resilient, a leading economist has predicted.
Speaking at the annual Ray White Surfers Paradise Group Exclusive Market Report Event, Chief Economist Nerida Conisbee broke down the factors set to drive the local market in 2023.
“I think one of the things that’s really standing out about Queensland at the moment is just the level of population growth that is occurring,” Ms Conisbee said.
“As a result, even though interest rates are rising… it does seem that the housing supply shortage, a shortage of stock availability and population growth are all balancing the market.”
While interstate migration had dropped off somewhat from its pandemic highs, it was likely that Queensland would benefit from a larger proportion of overseas migration than it has historically.
“We are getting a high proportion of overseas migrants coming to Queensland compared to what happened pre-pandemic,” Ms Conisbee said.
“So generally Melbourne and Sydney do get the bulk of international migrants but Queensland is now attracting a greater share of them.”
While prices had fallen on the Gold Coast since their 2022 peak, they had recently begun picking up again due to the supply dynamic, Ms Consibee said.
“The last couple of months, it does seem to be that prices are pushing up,” she said.
A slowdown in the new housing supply pipeline, as well as difficulties securing construction workers, would likely exacerbate the area’s housing shortage and continue to drive prices, Ms Conisbee predicted.
“There is a long-term housing problem that’s going to occur in the Gold Coast and in South East Queensland,” she said.
It appeared that many new arrivals to the Gold Coast, who had initially been renting, were now making the shift to buying, Ms Conisbee said.
Interest rates also appeared to be hitting the Melbourne and Sydney markets harder than the Gold Coast, she added.
It also appeared that the local economy was beginning to diversify, something that would help attract new demographics to the area in the coming years.
“The Gold Coast economy was once completely dominated by tourism and hospitality,” Ms Conisbee said.
“However, this is really evolving, with a mixed and diverse economy, for example there is a thriving health industry.
“Even looking just at office vacancies on the Gold Coast – they are low. Just one indication that the economy is not slumping on the Gold Coast, and it’s offering far more varied employment opportunities.”
