Move over Sydney, the Gold Coast is about to flex its property muscle. Of the 550 city councils across Australia, the Gold Coast will be one of the top property market stars by the end of 2015 and for the next couple of years.

Property sales volumes have been strong with increases of 11% (houses) and 39% (apartments) from two years ago. Median house values have increased by 11.2% during the last two calendar years. Momentum for the Gold Coast property market is destined to accelerate further. In Propertyology’s opinion, property markets will be driven by (arguably) the biggest job market turn around in the country.

We also have expectations for Australia’s tourism industry to experience a boom that will be bigger and last a lot longer than Australia’s recent mining boom. Property investors, including an influx of Asian investors, will add further buoyancy while the build up to the 2018 Commonwealth Games on the Gold Coast will ensure that the profile remains high.

Historical population growth of almost double the national average can be attributed to the Gold Coast lifestyle. This lifestyle is also the driver of Gold Coast’s number one industry – tourism. When the GFC hit in late-2008, consumer sentiment disappeared, jobs were shed and its property market suffered.

Like most of Australia, Gold Coast’s post-GFC jobs market has been stuttery. But, a pipeline of major projects bigger in size than several capital cities has resulted in an incredible transformation. Net jobs growth of 19,662 for the 2013 calendar year was blown out of the water by the 181,856 net jobs in 2014. A scroll through Propertyology’s own research library shapes our expectations for jobs growth to remain high for some time yet. Major projects include the new $1 billion Coomera Town Centre, Commonwealth Games Village ($2 billion), and Pacific Fair Shopping Centre upgrade ($0.7 billion). The proposed $7.5 billion Gold Coast Cruise Ship Terminal and Resort was recently scrapped by the new state government. Reports that two thirds of the community are in favour of the project has resulted in the proponent (ASF Consortium) being determined to open up fresh discussions to resolve concerns over the potential environmental impact. Without the ASF project the Gold Coast property market is tracking towards annual double-digit price growth. The potential 30,000 direct and indirect jobs that would be created if the $7.5 billion cruise ship project were completed would be an immense game-changer for the local property market. Boom!

Three other major projects, each with a $1 billion investment, include the Jamie Durie-inspired Maddison Estate, the Pacific View Estate at Worongary, and the Jewel Hotel and apartment complex at Surfers Paradise. Investors would be wise to keep one eye on Gold Coast’s property supply pipeline. Outside of tourism, construction has long been Gold Coast’s biggest industry. The 4,660 dwellings approved last financial year is well short of the 15,000+ approved in 2004 and 2005 however the curve is trending up again. Job creation during the construction stage of these big residential projects will eventually result in significant new supply. There is scope for a post-Commonwealth Games over supply, especially in the apartment market which last year accounted for 55% of dwelling approvals.

This article was written by Simon Pressley, Managing Director of Propertyology, a REIA Hall Of fame Inductee, property market analyst, accredited property investment adviser, and Buyer’s Agent. Propertyology works exclusively with property investors to purchase properties in strategically chosen locations all over Australia.