Gold Coast development: $80M in sales on Palm Beach tower, with units selling $300k above listed price

Units in one of the Gold Coast’s newest towers have each sold six figures above their listed price — and they haven’t been built yet as the Gold Coast’s housing market continues to heat up.

UNITS in one of the Gold Coast’s newest towers have each sold for more than $300,000 above their listed price — and they haven’t been built yet.

Ignite Projects will break ground on its Cabana Palm Beach tower in June after recording more than $80 million in sales on its 34 units in two months.

The average price for each unit was $2.7 million, more than $300,000 above the listed price.

Ignite Projects managing director Josh Foote said four buyers each paid up to $5.5 million to purchase and combine two apartments.

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“It’s true we are experiencing a new level of demand sparked by low interest rates, incentives and higher levels of migration across the board, but purchasers are still discerning about where they put their money, especially at the higher end of the market,” he said.

“To have all apartments sold ahead of receiving development approval is a huge vote of confidence in our project team, and the fact people were willing to spend more than list price and, in some cases, combine two apartments shows we have got it right.

“We are now gearing up to bring Hutchinson Builders on site earlier than expected, with building to start in June and completion slated for November 2022, which means our first residents should be handed keys prior to the Christmas holiday next year.”

Palm Beach is among the top five most searched suburbs in Queensland and property prices have increased 9.1 per cent in the past quarter alone.

Data released in March by consulting firm Urbis revealed the market was being partially driven by a lack of available units because of a decline in the number of projects launched between 2018 and 2020.

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Inside Cabana Palm Beach

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In 2020, 22 new projects launched containing a total of 1411 apartments while 2019 had 24 projects with 2164 units.

The average number of apartments in new projects launched between 2018 and 2020 decreased from 91.8 to 66.8 respectively.

Cabana marketing agent Andrew Erwin said there had been fierce competition among buyers to secure the units, forcing the prices higher.

The tower will feature a private beach club.

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“At Cabana we had purchasers from the Gold Coast, Brisbane, Sydney, Melbourne and a number of other regional areas, so the competition was fierce and buyers had to be fast,” he said.

“A lot of these buyers were relocating for the lifestyle on offer at Palm Beach, as well as the opportunity to secure a larger-than-average apartment, with those who bought two units able to enjoy up to 400sq m of living space.

“The trend towards larger beach-home-style apartments is here, and I anticipate this will continue as more people want additional space for work, study and recreation in the home.”

Originally published as Gold Coast development: $80M in sales on Palm Beach tower, with units selling $300k above listed price