Gold Coast property values: Surprise reason why apartment price are skyrocketing
Unit sales in Gold Coast towers are defying a shaky economy, with new data revealing more are selling at a higher price than just three months ago. SEE WHICH SUBURBS ARE BOOMING
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UNIT sales in Gold Coast towers are defying a shaky economy, with new data revealing more are selling at a higher price than three months ago.
A new report by Colliers shows apartment sales in the past quarter have come close to topping those at the height of the early-Pandemic boom in 2020.
It reveals sales of new apartments on the Gold Coast edged higher in the June quarter, as the city’s ongoing supply shortage defied interest rate increases to push prices up.
REVEALED: COAST’S WORST SUBURBS TO HAVE A MORTGAGE IN
Key report findings for the June to September quarter include:
* The average price paid for these apartments was $1.117m - 3.8 per cent higher than the March to June quarter. This is just shy of the record high of $1.143m reached in the September quarter of 2020 at the pandemic height;
* More than 2073 new units sold during the 2021-22 financial year, with three quarters of those in the coastal strip between Southport and Coolangatta;
* There has also been an increase in offshore investors entering the market during the June quarter with four per cent of total sales during the period requiring Foreign Investment Review Board approval;
* The number of units still for sale across 81 Gold Coast projects surveyed for the report were 875 – up from 411 in the March quarter. This was the result of new projects hitting the market;
* The Gold Coast has a 5.5 month supply of units remaining.
Colliers Gold Coast director Steven King said the Gold Coast’s property market continued to be at a premium, pushing prices up.
“Supply of new apartments is falling due to the increased cost of construction, which for high-rise apartment projects over the last 16 months has risen by more than 25 per cent,” he said.
“Demand for new apartments remains solid but with a reduced supply of new projects and apartments, we expect apartment prices to continue rising especially if the supply shortage becomes more critical.”
The report, with data from property consulting firm Urbis showed 396 sales of new apartments in the quarter, up from 377 sales three months earlier.
This came despite the Reserve Bank of Australia lifting the cash rate six times since May.
Almost half of these units which sold were in Surfers Paradise and Broadbeach.
Colliers residential director David Higgins said the Gold Coast was outpacing other cities.
“The latest quarter’s sales may be slightly higher than the March quarter but well down on the extraordinary peak we saw in the first quarter of last year,” he said.
“However, sales in the 18 months to June this year have all been significantly higher on a quarterly basis than the preceding 18 months and that reflects sustained demand in the market even through the first two interest rate increases.
“There’s an emerging trend of foreign purchasers gradually re-entering the southeast Queensland investment market,”
Mr Higgins said the interest rate rises had little impact on the top end of the market.
“We’ve also noticed the dynamic interest rate environment has had less of an effect on owner-occupier stock above $1.5m in comparison to the bottom end of the market,” he said.
“Should they continue, both of these emerging trends will add another layer of continued demand pressure in the medium term.”
NEW PALM BEACH TOWER TO RISE
CONSTRUCTION will begin within two weeks on a new $51m unit tower in central Palm Beach.
Fresh from securing approval for the redevelopment of Ashmore Seafood and Steak, luxury property group Steer Developments will move forward with building Cote Palm Beach on an 810 sqm site at 3 Thirteenth Ave.
Sitting just 20m from the beach on the future light rail route, plans reveal the tower has 17 units spread across nine storeys, with prices starting form $2.29m.
Construction is expected to be completed in March 2024.
CBRE residential projects director Nick Clydsdale, who is marketing the project, said units remained at a premium in Palm Beach and the wider southern Gold Coast.
“It taps into an ever-growing buyer pool of well-heeled owner occupiers who respond to impeccable design and location and demand certainty of delivery,” he said
GCB Constructions has been appointed as builder and is expected to break ground by November 1.
Cote will be Steer’s fourth Gold Coast project in its $350m stable of development in the city pitched in recent years.
These include the Ashmore project, Southern Gold Coast Hotel and Holm Rainbow Bay which is expected to be launched to the market in coming months.
Company director Rob Steer said the project was aimed at investors and downsizers.
“Cote Palm Beach will appeal to a broad range of buyers from professionals, holiday investors and downsizers, as well as locals who have already responded so well to this project,”
he said.
“We have ensured that Cote sensitively responds to the local context while delivering the absolute best of a luxe lifestyle that is just steps away from the beautiful beachfront.”
Several independent property reports in the past year have highlighted the dramatic shortage of units in the city’s southern suburbs.
According to a report released by property consulting firm Urbis in June, southern suburbs between Mermaid Beach and Coolangatta had their slowest sales quarter in five years, with just 27 sales.
However, the report noted this was because of an extremely limited number of units, with just 67 on the market during the three-month period.
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