From obscurity to the world stage — Australia's property market created more than 200,000 millionaires last year, and the next boom is set for the Gold Coast

According to research by Credit Suisse, the number of millionaires in Australia grew by 200,000 in 2017, reaching 1.16 million people. In its latest "Global Wealth Report", Credit Suisse stated that the number of ultra-high-net-worth individuals in Australia – those with a net worth of US$50 million (A$65.5 million) – surged by 30%.

Credit Suisse noted that this was driven by the booming property markets in Sydney and Melbourne, with most home-owning households seeing their wealth increase.

The renowned consulting firm Capgemini has also stated that the steady rise in the number of people holding assets worth over a million in Australia is largely thanks to the rapidly growing real estate sectors in Sydney and Melbourne. "People who have built their wealth through property investment are everywhere."

Data from property research firm CoreLogic shows that in the 12 months to December 2017, the proportion of all residential properties sold in Australia priced above one million Australian dollars rose by 1.3%. Across Australia's major capital cities during the same period, an average of 23.8% of houses and 11.6% of apartments sold for a final price of more than A$1,000,000. Five years earlier, these proportions were 9.8% and 3.9% respectively.

Looking at specific regions, Sydney remains the city with the most properties worth over one million Australian dollars, with 49.3% of houses sold last year exceeding A$1,000,000. Melbourne ranked second, with 28.3% of houses selling for more than A$1,000,000 last year.

In Sydney and Melbourne, seizing the opportunity presented by the property boom has allowed many people to build their wealth more solidly, rising into the ranks of millionaires and multimillionaires. And now, Australia's Gold Coast is also in a phase of rising property prices.

A growing migrant population and rising tourist numbers, a scarcity of developable land locally, and the tremendous appeal generated by the Commonwealth Games have provided very considerable assurance for the Gold Coast's property price outlook and investment returns. Therefore, for wealthy individuals looking to capitalise on capital growth opportunities, investing in Gold Coast property right now is a very wise choice.

The 2018 Commonwealth Games opened in grand style on 4 April 2018, and the Gold Coast property market rode this wave to a minor peak. According to the latest national property market report from Domain, the median house price on the Gold Coast rose 6.4% in the fourth quarter of 2017, reaching A$619,000. Industry insiders reveal that the market will continue on an upward trend.

Dane Atherton, Director of Harcourts Coastal, said: "Apartments in the city centre are currently very popular, especially in the Surfers Paradise and Broadbeach areas, and many investors can secure strong rental returns during the economic boost brought by the Games." Data shows that Queensland's economy grew by an average of 4.6% over the past five years, and the Gold Coast successfully avoided the impact of the 2008 financial crisis, with property prices remaining stable. Today, despite the global economic slowdown, Queensland's economy remains steady, with continued population growth and low taxes, leading many people to favour investing in commercial and residential property locally.

In addition, in the inland region of the Gold Coast – part of the economic corridor connecting Queensland's rapidly developing economy – there are scarce townhouse projects. Because this area has been designated by the local council as a region for industrial development, rising employment and population growth, data shows it is the fastest-growing area for population on the Gold Coast, with a housing vacancy rate of less than 0.8% and severe undersupply.

In summary, the Gold Coast has become a sustainable market, offering a first-class lifestyle, top-tier higher education institutions, comprehensive facilities and affordable housing. More and more people are paying attention to the Gold Coast, not only because of the Commonwealth Games, but even more so because of its enormous future development potential."