The Gold Coast’s real estate market has taken a hit, with dwelling values dropping nearly $52,000 from their peak as soaring mortgage rates push buyers beyond their borrowing limits. New data from the Realestate.com.au Home Price Index shows that greater Gold Coast dwelling values fell 0.26% in October to a median of $1,147,000, wiping out roughly $35,474 or 3% from its all-time high.
Houses have been the hardest hit, with a 3.6% peak-to-trough drop that erased an estimated $51,946 in equity from the typical Gold Coast house. Annual price growth for houses has slowed to just 0.66%, while headline inflation hits 4.3%. In contrast, units have proven more resilient, dipping just 0.07% over the month to a median of $943,000, with annual growth holding at 2.58%.
Realestate.com.au senior economist Eleanor Creagh warned that the Gold Coast’s pricing advantage is now negligible, leaving it exposed to future Reserve Bank moves. 'The Gold Coast remains a highly desirable lifestyle market, but years of strong price growth have significantly eroded its affordability advantage,' Ms. Creagh said. 'Higher borrowing costs are now placing greater constraints on demand, particularly for houses, where buyers generally need larger mortgages.'
Ms. Creagh also noted that the relative resilience of units suggests affordability is increasingly shaping purchasing decisions, with some buyers seeking lower-priced alternatives. She warned that any further interest rate tightening would hit the Gold Coast far harder than Queensland’s more affordable northern centers. At $1.39 million, a Gold Coast house costs more than double a Townsville house ($659,000) and nearly double a Cairns house ($740,000), amplifying mortgage sensitivity as rate hike threats mount.