17 Mar 2016

17 March 2016
This is an excerpt only. Please click here to view the original article

Developers are raking in hundreds of millions of dollars as demand for new Gold Coast apartments reaches record levels.

The latest quarterly report by market researcher Urbis reveals that there were 1494 sales in 2015, an 81 per cent jump on the previous year.

The Gold Coast central region, which includes Surfers Paradise and Broadbeach, was the standout performer with an average weighted price of $633,465 for the December quarter.

This figure was based on sales valued at $160 million.

Citimark Properties was among companies to enjoy outstanding sales, raking in $26 million from its Markwell Residences tower at the corner of Markwell Ave and Surfers Paradise Blvd.

Markwell Residences weighted price was $814,394, which helped push the region’s price up by $53,611, the biggest regional increase.

Everything about the Gold Coast is attractive now, especially when capital cities (such as Melbourne and Sydney) are so unaffordable.

Urbis senior consultant Lynda Campbell said the sector had enjoyed its best year since 2008 when the global financial crisis caused values to plunge.

“The best thing out of this is that 12 projects were launched in the fourth quarter and four have sold out,” Ms Campbell said.

“Everything about the Gold Coast is attractive now, especially when capital cities (such as Melbourne and Sydney) are so unaffordable.”

 The report points to a massive pipeline of supply for the Gold Coast and northern NSW, with the possibility of 4500 new apartments being launched to the market in the first half of this year.

And Ms Campbell said she did not think there would be an oversupply this year.

“I do not think we are going to have that issue this year,” she said.

“We had 12 projects launch in the December quarter and that’s more than we have seen for a long time.

“The increased sales rate means we’re seeing supply taken up at a greater pace.”

There has been a surge in apartment sales on the Gold Coast. Pictured are Michael Mackechnie and Nadine Aron who have bought off-the-plan in The Residences at Emerald Lakes. Picture: David Clark

Some regions, including the southern beaches (featuring Bilinga, Coolangatta and other suburbs), had an undersupply.

The area is the most expensive to be listed in the report, with an average weighted price of $905,102.

“Its sales rate has picked up, although the precinct has been traditionally low selling,” she said.

“They had 49 sales for the quarter which is six months supply, based on the current sales rate.”

Continue reading here