CoreLogic research suggests Gold Coast property prices have outpaced every Australian capital city over the past five years.
The 80.7% growth in this period is ahead of Brisbane's 71.2% rise to become the nation's second most expensive city behind Sydney.
The median house price in Gold Coast in October of this year was A$1,022,420 compared to Brisbane’s $883,357.
According to CoreLogic head of research, Eliza Owen this rapid growth on the Gold Coast could be caused by the high concentration of luxury properties in the city.
However, many of these are still cheaper than a family home on the outskirts of Melbourne or Sydney.
Another reason for the rapid growth could be the large cash purchases within the city.
"The luxury, high-density apartment options make it ideal for downsizers who are cashing in on large family homes in the capital cities," Owen said.
Population growth on the Gold Coast has also seen up to 15,000 new residents annually and a shortage of residential land has boosted prices.
"The city is stretched across many inlets and canals, creating a scarcity of developable land," Owen said.
According to Chief economist at real estate company PRD Diaswati Mardiasmo, growth on the Gold Coast and Brisbane defied national trends. This was due to growth pricing existing residents out of the city.
"Particularly for an area like Gold Coast, this is not sustainable," Mardiasmo told ABC News.
"They've had to look into housing that is more on the outskirts of Gold Coast, then they do the commute."
Mardiasmo says luxury homes have created two markets where the more expensive end of town is more susceptible to crashes.
"If there is a possibility of a crash, it will definitely happen quicker and more prevalent in the premium market, as opposed to the more affordable mid-price bracket sort of market,” she said.