HOMEOWNERS who bought a house on the Gold Coast two decades ago could sell it today for triple the price they paid.
New data from property market research firm Propertyology shows the city is one of 111 Australian locations where median house prices have tripled over the past 20 years.
The research was conducted between December 1998 and December 2018 on more than 180 towns and cities across the country with a population of 10,000 or more.
Propertyology head of research Simon Pressley said the Coast’s median house price had jumped from $185,000 to $632,000 in the 20-year period — an increase of $447,000.
“I doubt too many of those who purchased Gold Coast real estate 20 years ago would complain about the asset increasing 3.4 times,” he said.
“It highlights why residential real estate has always been such a popular asset class.
“An annual average capital growth rate over the last 20 years of 6.3 per cent plus a median rental yield of 4.3 per cent is a stellar result.”
He said regional markets had generally performed better long term.
“Generally speaking, locations with a more affordable median house price have more upside potential for capital growth,” he said.
“For that potential to be realised, the real skill is being able to identify the locations with positive leading economic indicators.”
Ray White Broadbeach principal Mitch Palmer backed Mr Pressley’s comments, explaining the high growth was possible because the Coast had such a low median house price 20 years ago.
To expect it to triple again in another 20 years was “a little bit less likely”.
“It’s easier when you’re coming off a low median,” Mr Palmer said.
“Coming off a high median and expecting it to still triple is a considerable amount.
“It would be logical to think it’s going to grow another $400,000 over 20 years though — property is a great long term investment.”
He put the growth down to the city’s strong and growing economy.