Real Estate Market Update - Varsity Lakes, Gold Coast QLD - August 2021
All the veteran agents in our office are saying that they have never seen a market like this. The big question most people are asking is "when will it come to an end?".
I don't have a crystal ball, but I do have the numbers and information below which explains what is driving the market and the situation at present.
Supply - Demand
As always, it is supply and demand that govern prices. Supply on the Gold Coast and in Varsity Lakes has been and still is extremely low. This has been one of the major factors driving the rise in property prices.
Demand also remains strong, with very large numbers of enquiries for most properties brought to market and good numbers through our open homes ( see my summary at the end of the email ).
Below are the stock level graphs for houses and units in Varsity Lakes and the Gold Coast.
Property stock levels for houses and apartments in the Gold Coast, Queensland
Houses - Varsity Lakes
It is clearly evident from the graphs above that stock levels in Varsity Lakes and the Gold Coast are at significant lows and are showing no signs of increasing. This lack of stock is creating an environment in which buyers are competing for limited stock and has resulted in most properties selling with multiple offers and driving prices higher.
Whether it will be an increase in stock or a decrease in demand that will slow the price growth is yet to be seen. At the moment neither are occurring and there is good support for the high prices currently being achieved. As can be seen in the graph below, there has been a substantial increase in the average price of homes in Varsity Lakes in recent months.
Units - Varsity Lakes
After many years of being in the doldrums, unit prices are finally rising and the increase has been quite substantial, as can be seen in the graph below.
Once again it is very low stock levels driving the market.
Median days on market for units over 10 years in Varsity Lakes, Gold Coast QLD
Summary
The Varsity Lakes and Gold Coast property market has been performing exceptionally well and all the fundamentals driving this growth have strengthened even further over the past 2 months.
Demand has increased in June and July with the average number of people through each of the open homes held by our office going up from 9 to above 12. This will certainly be putting an upwards pressure on price.
Below is a graph showing the average number of inspections per open home per month since July 2019. This graph represents the "demand" within the market, which at the moment seems to be on an upwards trend.
Average inspections per open home within Ray White Robina office till beginning August 2021