Gold Coast rises as Melbourne falls in rankings

Australia's property landscape is undergoing a notable shift as the Gold Coast surpasses Melbourne in national housing market rankings. This change is largely driven by increasing demand for coastal living and the long-term impact of public policies. A new report by Ray White shows Melbourne has fallen to sixth place nationally, after previously ranking just behind Sydney. The Gold Coast has climbed from fourth to second, indicating a broader structural transformation that may influence future investment and growth trends.

For many years, Melbourne retained a strong position among the nation's leading property markets. However, recent data highlights a significant decline, with lifestyle appeal in Queensland and the rise of remote work contributing to growing interest in coastal areas. Ray White analysts suggest this shift began during the pandemic when changing work conditions made it easier for buyers to consider locations outside traditional metropolitan centres.

Current market statistics highlight the change in momentum. In June, property prices in Brisbane increased by 0.7% while Melbourne recorded a smaller rise of 0.5%. Over the past year, Brisbane housing values rose by 7% as Melbourne registered a slight drop of 0.4%. High unemployment, rising state debt and additional property taxes in Victoria are believed to be discouraging investment. In contrast, Queensland offers more attractive tax policies such as a $600,000 tax-free land threshold. Melbourne’s $50,000 threshold is now seen as far less competitive.

This new pattern looks to be more than a short-term market shift. The continued rise of the Gold Coast and the gradual weakening of Melbourne's housing market signal a critical turning point in Australia’s property order. While some analysts believe Melbourne may recover in the long run, few expect a quick turnaround. Unless the Victorian government revises its tax policies and rebuilds economic confidence, the current rankings may become the new normal.

Source: The Australian, Property Update,Bamboo Routes