FOMO fuels price hikes By Michael Kollosche
There’s a lot of emotion in property right now. Cashed-up buyers have bolted out of the gates in 2021 with a gusto not witnessed in recent real estate history. The fear of missing out (popularly known as FOMO) is very real for those who’ve been going to auctions and open homes month after month without success. Across the board, it would be fair to say there’s been 5% growth per quarter on most prestige Gold Coast assets and even higher in some areas. New price records have been set across several Gold Coast suburbs already in 2021. Kollosche kicked off January with a $12,800,000 sale on 139-141 Monaco Street in Broadbeach Waters, breaking both the record for the street and the suburb. Last month our team established a new price benchmark in Mermaid Waters where a three-level waterfront entertainer at 21 Saxonvale Terrace sold under the hammer for $3,410,000.
New suburb records have also been set down in Tallebudgera Valley ($5m), Helensvale ($2.33m), Jacobs Well ($2.225m), Burleigh Waters ($2.2m), Ormeau ($2.125m), Advancetown ($1.65m), Kingsholme ($1.52m), Oxenford ($1.28m) and Springbrook ($1.15m). In another sign of just how far prices have come, five new Gold Coast suburbs entered the million-dollar median club for the first time this year, namely Currumbin Valley ($1.25m), Currumbin ($1.1m), Tallebudgera ($1.1m), Runaway Bay ($1.035m) and Tallai ($1.026m). The median house price is now over $1 million in 12 out of 52 Gold Coast suburbs while in Main Beach the median is tipped to hit $3 million in 2021 if the current rate of price growth continues. In February CoreLogic’s national home values index surged by 2.1% — the largest month-on-month change in 17 years - while in March that same index rose by 2.8% in what was the biggest monthly growth since October 1988.
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“For those who failed to go hard early, rising prices are a bitter pill to swallow.” With emotions running high and interest rates at record lows, competition among hungry buyers is driving impressive sales results across the Gold Coast, both on and off the market. A buyer who previously missed out on several properties was ultra motivated coming into Kollosche’s auction of 34 Bulolo Avenue, Runaway Bay last month. Strong competition among 11 registered bidders produced 68 bids in around 17 minutes to push the price $950,000 above reserve to $3,950,000. A local couple who had been looking for more than a year has claimed the keys to a luxury hilltop mansion on Tallai’s most coveted street. Boasting panoramic views over the city, Kollosche sold 9 Grandview Terrace within 16 days for $3,800,000.
