In the year to August, Gold Coast property prices surged by 24.9 per cent, but that was only enough to make it Australia’s 14th hottest market, CoreLogic data showed.
Australia-wide there has been an 18.4 per annual increase; the sharpest since July 1989 when interest rates were at a now-unimaginable 17 per cent.
Sydney’s Northern Beaches had a 33.8 per cent annual increase in property prices with the Richmond-Tweed area of northern New South Wales – including Byron Bay – climbing by 29.5 per cent, outdoing greater Sydney’s 26 per cent rise.
Record-low interest rates saw house price records set in 88 per cent of Australia’s real estate markets, with regional areas by the coast doing even better than capital cities as more professionals began to work from home, obviating the need to live in major cities.
Detached homes with gardens are in particularly high demand, which means the number of them on the market has plummeted.
A study from house price data provider CoreLogic revealed there were 153,803 houses for sale across Australia in August 2018. As of late August 2021, there are just 88,872 houses on the market, a drop of more than 42 per cent.
Why Australia’s property market has never been hotter
When the pandemic first sent Australia into lockdown in March 2020, it was expected that demand for property would drop significantly.
The ‘Big Four’ banks warned of an up to 32 per cent crash in housing prices at the time.
Instead, a combination of record-low interest rates, government stimulus programs and pandemic-driven factors such as working from home and the desire for more space, has sent demand for housing to an all-time high.
Figures from the Australian Bureau of Statistics released earlier this month showed in the June quarter, Canberra led the way with growth of 8.2 per cent, followed by Sydney at 8.1 per cent, Hobart at 6.3 per cent, Brisbane at 6.1 per cent, Adelaide at 5.3 per cent, Perth at 4.8 per cent and Darwin at 4.6 per cent.