How COVID-19 Reshaped the Gold Coast Property Market: Five Years On
The COVID-19 pandemic disrupted global markets and economies, and the Gold Coast property market was no exception. However, five years on, we are witnessing a transformed landscape—one that has seen unprecedented growth, shifting buyer behaviours, and evolving economic conditions.
The Initial Impact of COVID-19 on the Gold Coast Property Market
When the pandemic first hit in early 2020, uncertainty loomed over the real estate sector. Lockdowns, border closures, and economic slowdowns initially dampened market activity. However, the Reserve Bank of Australia's (RBA) record-low interest rates and government incentives—such as the Home Builder grant—quickly reignited demand. As Australians sought lifestyle changes and work-from-home flexibility, the Gold Coast emerged as a prime destination for buyers escaping major metropolitan cities like Sydney and Melbourne.
The Boom: 2020-2022
What followed was an unprecedented property boom. Median house prices on the Gold Coast surged as interstate migration reached record levels. Low interest rates, high demand, and constrained supply saw properties selling faster and at premium prices. Suburbs such as Burleigh Heads, Broadbeach, and Palm Beach became hotspots, attracting buyers seeking coastal living and larger homes.
Investors also capitalised on the strong rental demand, with vacancy rates dropping to historic lows. Short-term accommodation surged as domestic travel rebounded, with holiday homes and Airbnb properties experiencing high occupancy rates.
Market Stabilisation: 2023-Present
The post-pandemic real estate market has gradually stabilised. Interest rate hikes from mid-2022 onwards curbed the rapid price growth, with affordability concerns slowing buyer enthusiasm. While property values remain strong, the rate of appreciation has moderated. Some areas have experienced slight price corrections, but overall, the market has retained its resilience.
Interstate migration has continued, albeit at a steadier pace, as affordability pressures in major cities persist. The demand for quality rental properties remains high, keeping rental prices elevated and vacancy rates low.
The Current Economic and Real Estate Climate in 2025
- Interest Rates and Borrowing Costs: Higher interest rates have impacted borrowing capacity, leading to more selective purchasing decisions. Buyers are prioritising value-for-money properties, and first-home buyers face increased challenges entering the market.
- Rental Market Pressures: Rental affordability has become a major concern, with rents remaining high due to continued demand. Supply shortages, particularly in long-term rentals, are exacerbating the issue.
- Development Challenges: Construction costs, labour shortages, and regulatory hurdles have slowed new housing developments. Delays in approvals and higher costs have put upward pressure on property prices.
- Interstate Migration: While migration has slowed compared to the peak pandemic years, the Gold Coast remains a desirable location for those seeking lifestyle changes, particularly retirees and remote workers.
- Commercial Real Estate Adjustments: The shift towards hybrid work models has influenced commercial real estate. While office spaces have adapted, demand for flexible and co-working spaces has increased.
- Tourism Rebound: The return of international tourism has revitalised the short-term accommodation market, benefiting investors in the holiday rental sector.
What’s Next for the Gold Coast Property Market?
The future of the Gold Coast property market remains promising, albeit more balanced. Population growth, ongoing infrastructure developments, and strong lifestyle appeal will continue to drive demand. While affordability remains a concern, strategic investment and careful market navigation will provide opportunities for buyers, sellers, and investors alike.
At Smyth Real Estate, we are closely monitoring market trends and helping clients navigate the evolving landscape. Whether you’re looking to buy, sell, or invest, our expertise can help you make informed decisions in this post-COVID market.
For tailored advice on how these changes impact your property goals, contact Smyth Real Estate today.