The Gold Coast Supply Dilemma

The Gold Coast has been one of the true beneficiaries in the post-Covid economy where a once-in-a-generation population shift to this coastal city has been witnessed. The region saw the second largest population growth among major Australian cities in FY2022 at 2.2%, driving economic activity. This is largely being led by “metro-movers” from Sydney and Melbourne who seek a change in lifestyle. This population growth has supported the confidence in the labour market with employment growing by almost 8.3% since March 2020. The Gold Coast has also seen a bounce back in international students with over 4,500 students commencing on the Gold Coast in January and February 2023.

However, these demand drivers are placing pressure on residential, office, industrial and retail supply on the Gold Coast and have contributed to the chronic undersupply the region will see over the next few years. With this backdrop, existing assets are likely to benefit from continued rental growth over the medium term until more capacity in the construction sector is available and the interest rate environment has stabilised.