29 Aug 2017

The Gold Coast new apartment market recorded 194 unconditional sales in the June 2017 quarter, according to the latest research by property consultants Urbis.

Though a decline on the previous quarter’s sales, supply levels dropped in line with sales activity. Current new apartment market supply is at the lowest level recorded since the December 2014 quarter.

Urbis Senior Consultant Lynda Campbell said the Gold Coast apartment market levels of supply and demand are well balanced. “Annual sales levels to date are 1,264, and supply levels are currently sitting at 1,137, just under a year’s worth of apartment supply. We saw five new projects launch this quarter, however they were all smaller boutique developments which only added 122 apartments to current supply. Additionally, a further seven projects sold out in the June 2017 quarter, further ensuring the Gold Coast new apartment market remains in balance.”

The Gold Coast weighted average sale price across the four precincts decreased slightly by $4,245 from the previous quarter, registering $627,926.

The sales for the first half of 2017 have eclipsed the sales rate for the entire 2014 year in the Southern Beaches Precinct.

“The Coastal Fringe Precinct was once again the most affordable precinct, registering a weighted average sale price of $469,059” Ms Campbell said. “Over the last 12 months we have seen the majority of sales each quarter in the Coastal Fringe Precinct. This is driven by affordability. In the June 2017 quarter, 107 sales were recorded in this precinct – 55 per cent of total sales, up from 44 per cent of total sales in the previous quarter.”

Only four projects are expected to launch in the Coastal Fringe Precinct over the next six months, bringing 307 units to the precinct. Ms Campbell said the largest supply levels are still located in the traditionally high density Gold Coast Central Precinct, despite the recent popularity in the Coastal Fringe Precinct.

“Over 2,000 units are expected to launch in the next six months in the Gold Coast Central Precinct, our largest precinct with the highest proportion of high-rise, high yielding projects. Current supply levels in the precinct sit at 515, the highest level of supply across the four precincts. However, with a weighted average sale price of $755,612, well above the level recorded in the popular Coastal Fringe Precinct, new supply could see sales increase, however price points will be a major factor,” Ms Campbell said.    

Once again the Southern Beaches Precinct remained the most under supplied, with only 93 new apartments remaining for sale at the end of June 2017. Ms Campbell said, considering recent sales data, the precinct remained a prime opportunity for development. “Sales rates in this precinct have been steadily increasing over the last two years as new projects have launched. The sales for the first half of 2017 have eclipsed the sales rate for the entire 2014 year in this precinct.”

Looking towards the second half of 2017, despite a change in sales levels, Ms Campbell believes the Gold Coast apartment market will remain stable. “There are several large projects in the wings which will alleviate any supply issues, but in the meantime supply levels remain low in some precincts. If developers are able to deliver the right product, in the right location, at the right price to the market, sales will continue to be achieved.”

  • 194 sales recorded in the June 2017 quarter, with 68 per cent of sales being two-bedroom, two-bathroom product.
  • Weighted average sale price recorded at $627,926, a slight decrease of $4,245.
  • For the fourth quarter running, the Coastal Fringe Precinct recorded the highest quarterly sales rate across the four Gold Coast precincts, with 107 sales during the June 2017 quarter, accounting for 55 per cent of total sales.
  • The GC Central Precinct recorded 49 sales during the June 2017 quarter, followed by Southern Beaches (36) and North Shore (2).
  • Supply levels have fallen, and the June 2017 quarter recorded the lowest level of supply since the December 2014 quarter.

*Coastal Fringe suburbs include Arundel, Parkwood, Molendinar, Ashmore, Benowa, Bundall, Carrara, Robina, Clear Island Waters, Merrimac and Varsity Lakes.
*North Shore suburbs include Biggera Waters, Coombabah, Helensvale, Hollywell, Hope Island, Paradise Point and Runaway Bay.
*Gold Coast Central suburbs include Labrador, Southport, Main Beach, Surfers Paradise and Broadbeach and Broadbeach Waters.
*Southern Beaches suburbs include Bilinga, Burleigh Heads, Burleigh Waters, Casuarina, Coolangatta, Currumbin, Kingscliff, Kirra, Mermaid Beach, Mermaid Waters, Miami, Palm Beach, Tugun and Tweed Heads.