More than 1000 units to hit Gold Coast property market as southern investors move in
MORE than 1000 new units are set to hit the Gold Coast market as demand for rentals and residential units hits a new high. But it’s not overseas investors driving the demand.
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A THOUSAND new apartments will go on sale in the next two months to meet the demand of “Mexicans” from southern states looking to relocate to the Gold Coast.
Some of the city’s key developers are about to unveil $1 billion worth of units to help ease pressure from retirees and first-home buyers shifting north from NSW and Victoria, and Gold Coast homeowners wanting to downsize.
WHY THESE COAST UNITS ARE SO POPULAR
THE NEXT PLACE DEVELOPERS ARE BUILDING
Developers and real estate agents say they are receiving hundreds of inquiries every month from outside the region for units, predominantly in the $330,000-500,000 price bracket.
Hundreds of units have been snapped up at other Gold Coast projects yet to be built.
Projects freshly on the market or going on sale in the first quarter of the year include:
• The $250 million Chevron One from Melbourne developer Bensons Property Group.
• The $200 million Markwell Residences from Citimark.
• The $90 million Naia at Mermaid Beach from Eastview
• The $80 million Elysian tower at Broadbeach by Spyre Group.
• The third stage of the Cambridge Residences at Robina.
• The $200 million Signature Broadbeach from Little Projects
• Sunland’s $200 million, 44-storey Hedges Ave tower is expected to be approved early in the new year and is go to market almost immediately.
Collectively, these projects will add another 1000 units to the Coast’s market, primarily concentrated around the central regions of Broadbeach, Surfers Paradise and Robina.
“There is a movement in the market on the Gold Coast and we are following the rest of the world in creating inner-city living because people like being around the restaurants, want access to the beaches and the light rail now makes it easy to live without a car,” said Ray White Surfers Paradise chief executive Andrew Bell, whose company posted record figures during 2017, including $143 million in sales in November.
“Our market is at its healthiest levels since 2007 and the resurgence of people looking for the lifestyle and living on the Coast also comes from the prices in Sydney and Melbourne growing so exorbitantly.
“My read of the market is that it is timely to get this new stock in and we are seeing unprecedented demand for it. There is a solid migration of people coming here.”
Real estate figures said the influx of apartments was welcome as the Gold Coast currently had its lowest supply of units since 2014. It was in contrast to the “overheated” markets in Sydney, Brisbane and Melbourne.
THE 15 MAJOR DEVELOPMENTS AND ROAD UPGRADES COMING
The Coast’s rental vacancy rate is currently 1.9 per cent, below Brisbane (3.6 per cent) and Sydney (2.1 per cent).
However, most of the new units coming on sale are expected to be used by owner-occupiers.
According to figures released in October, Gold Coast house prices are expected to rise by six per cent to a record $665,000 within two years.
The figures, compiled by insurance provider QBE, tipped unit prices to increase five per cent to $425,000 in the same period.
Long-time real estate agent Brent Martens, of Harcourts Coastal, said the Gold Coast was experiencing unprecedented demand for both rental and residential properties.
“We are now seeing upward of 15-20 groups turning up for inspections and will offer to pay either six months’ worth, or a whole year of rent to secure their place,” he said.
“It is much closer to what you might see in Sydney and Melbourne. It was virtually unheard of 18 months ago, but now we are seeing it regularly.”
The Gold Coast market and sales figures are also expected to get a significant boost from the thousands of visitors at April’s Commonwealth Games.
Mayor Tom Tate this week revealed around $13 billion in investment, including residential, hotel, rail and transport infrastructure was expected to be rolled out across the city in the coming two years.
Real Estate Institute of Queensland’s John Newlands said the Gold Coast market had matured significantly in the near-decade since the global financial crisis.
“There has been a shift in the market and there has been a large increase in downsizers, which is also freeing up residential housing markets across the Coast,” he said.
“The marketplace has matured significantly and we are seeing more jobs created in the construction industry as well as in health and other workforces.
“With this stability we are seeing more units needed and more people moving in because we also do not have the oversupply of others.”
Gold Coast developments
• CHEVRON ONE
A $250 million, 40-storey tower planned for Chevron Island’s Stanhill Drive by Melbourne developer Bensons Property Group. It will feature 210 apartments and retail areas and is expected to become Chevron Island’s first highrise.
• MARKWELL RESIDENCES
Developer Citimark’s $200 million, 46-story mixed-use tower. It will featured 210 units and is planned for a site on the corner of Markwell Ave and Surfers Paradise Boulevard.
• NAIA
A $90 million project from developer Eastview. Planned for Alexandra Ave, it will have 97 units reaching 24 levels.
• ELYSIAN TOWER
Proposed for a beachfront site at 185 Old Burleigh Road, the $80 million tower by developer Spyre Group will feature 21 levels and is expected to be completed in 2019.
• CAMBRIDGE RESIDENCES
Construction of the $162 million unit complex’s second stage, which includes a mix of one and three-bedroom units is scheduled to begin at Rod Laver Drive, Robina, next month. From developer Shino Development Group. The final selection of units from the 213-apartment stage will go to market shortly.
• SIGNATURE BROADBEACH
A $220 million tower proposed by Melbourne-based Little Projects. The tower is planned for a site on Philip Ave, Broadbeach, and will have 264 units. Construction is expected to begin later this year.
• HEDGES AVE
A $200 million, 44-storey residential tower put forward by Sunland. It is expected to be approved by the council early this year before going to market. It will have 99 apartments.
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