Cyclone Alfred was an unprecedented weather event for many residents of the Gold Coast and South East Queensland.
While the Great Gold Coast cyclone of 1954 and other significant systems in the 1960s and 1970s caused widespread erosion and property damage, they predated many of us. As a result, there was no prior test case for how the Gold Coast would fare when subjected to the elements of a Category 1 cyclone.
The primary concerns as the event unfolded were storm surges threatening coastal communities and possible flood inundation for low-lying properties. With Alfred now in the rear-view mirror, we must consider its impacts and how it may influence the Gold Coast property market. In particular, the market will be trying to identify if the Gold Coast’s beachside location is more vulnerable to significant weather events, which may make investment in other localities more appealing. Rising insurance premiums compound these concerns.
Assessing the Damage
While Cyclone Alfred caused disruptions, the overall damage was less severe than initially feared.
- Infrastructure Failures: Unfortunately, failures in critical infrastructure occurred initially, resulting in both power outages and phone network coverage issues. This was temporary and will not have lasting effects.
- Flooding: Council flood mapping identified approximately 6,000 properties on the Gold Coast at risk of flooding. While localised flooding did occur, it was not of significance, with most properties remaining unscathed.
- Erosion & Storm Surge: Concerns about beach erosion and tidal surges were significant for those in beachfront properties. However, thanks to advancements in construction, sea wall engineering, and coastal management planning, no substantial property damage was sustained.
Unlike historical catastrophic weather events on the Gold Coast, buildings and dwellings withstood the storm well. Although media images of eroded beaches may appear unsightly, the council will restore dune degradation in a short period. Gold Coast City Council have reported that beaches will be renewed in time for the Easter school holidays, ensuring business as usual.
While insurance companies may assess the damage differently and disagree with some of these observations, it appears certain that Cyclone Alfred caused significantly less damage than the river city of Brisbane sustained in both the 2011 and 2022 flood events.
Whilst Cyclone Alfred was indeed a formidable opponent, it was not strong enough to withstand a city on the move.
Market Update
The Gold Coast property market remains relatively strong, primarily underpinned by continued migration. While market conditions have softened, clearance rates remain firm. Vendors are becoming more realistic, acknowledging that the frenzied buying and record highs of recent years are unlikely to be replicated anytime soon.
Key Market Trends
- Resilient Entry-Level and Luxury Markets: While the mid-tier market remains relatively subdued, both entry-level and high-end properties continue to perform well
- Record Sales in Premium Locations: Record sales continue to be achieved in beachside and riverfront localities, as demand from interstate buyers remains firm.
- Growth Leading into the Brisbane Olympics: The Gold Coast continues to outgrow other South-East Queensland coastal localities as the city takes its place on the world stage in the countdown to the 2032 Brisbane Olympic Games.
Market Hesitation Pre-Election
Historically, property markets slow in the lead-up to a federal election as buyers adopt a ‘wait and see’ approach. This trend appears to be repeating, although slightly offset, as a limited supply of property appears unable to be replenished. High-end luxury apartments remain the exception.
The recent cyclone temporarily impacted the market, resulting in auction cancellations and postponed open-house inspections. Short-term holiday accommodation revenue also suffered a setback, although it is expected to recover quickly.
The Gold Coast market is expected to remain relatively firm in the short term, with agents still reporting strong buyer enquiry.