Up, up and up it goes, where it will stop nobody knows.
I’m talking about the median house price and not for the first time this year.
Why? Because is continues to climb at an unprecedented rate and regional Queensland areas such as the Gold Coast are experiencing some of the fastest and largest jumps.
According to Real Estate Institute of Australia president Adrian Kelly, over the past quarter to June the Gold Coast median house price has risen by 4 per cent and 21.4 per cent over the previous year.
Last week it snuck up $17,000 to hit a record high of $797,000, according to figures from REA Group, with apartments following suit, rising $10,000 to reach $485,000.
Compare these figures to January, and the prices stood at $690,000 and $430,000 respectively, with an annual rise of 6.1 per cent and 4.3 per cent.
Go back to the start of 2020, which was when Covid came along and subsequently kick-started this rapid house price ascension, and the medians were sitting at $661,310 and $410,000, with annual growth of just 1 per cent for houses, while units were in negative territory at -0.5 per cent.
What a difference a year – and an unexpected pandemic – can make, hey?
News of rising house prices can elicit different emotions, depending on which side of the property fence you’re sitting on.
Homeowners and sellers are rubbing their hands in glee.
Their houses are now worth, on average, almost $150,000 more than they were just over 12 months ago.
For apartment owners, as has always been customary, the annual advance in prices has been a little more modest at $75,000.
Although we could soon see the gap in gains between these two property types come closer together given the level of luxury beachside apartments that are popping up like mushrooms across the Coast.
Take the new six-star apartments that have just gone on sale in Broadbeach.
Aptly named Luxe Broadbeach, the development is set to have the largest penthouse ever built in Queensland. The price for this record-breaking pad has yet to be determined but with the entry level prices in the building starting at $4.95 million, well, one can only imagine.
As smaller brick and tile blocks make way for more of these high-rise towers of whole-floor apartments that can be bigger than many homes, and with equally lofty price tags, the gap between unit and house prices will inevitably narrow.
Low interest rates and the discontent of southerners fed up of the never-ending lockdowns continue to fuel the phenomenon, with more people willing to pay ever bigger bucks to get in on the action.
One only has to look at what is happening in the prestige market – where three times as many homes have changed hands at $6m of more so far this year than in all of 2020 – to see the wider trend.
A house at 10 La Scala Court in the Isle of Capri, sold ahead of auction this week for $4.5m through Katrina Walsh of Harcourts Coastal. It was its first time on the market since it was built in 1998 when the owners paid a comparatively feeble $191,000.
Agents argue that the reason people are willing to pay so much these days is because the Gold Coast market has been severely undervalued and despite the rapid price growth, it probably still is.
You could say this is the property boom that we were meant to have to bring the Gold Coast and Queensland into line with its southern counterparts.
But while homeowners and investors can rest easy knowing they are literally making money in their sleep, you have to spare a thought for renters and first-time buyers trying to make that transition. For them, the chance to feel the same sense of giddy satisfaction must feel like it is slipping further and further out of reach.
Particularly when the gap between house prices relative to wage increases grows ever wider.