The growing down-sizer market is seeing this sector strengthen, and this trend is now beginning to emerge in the Brisbane new apartment market.
Urbis Senior Consultant Lynda Campbell says the Gold Coast apartment market is hitting its stride. “We are seeing confidence in the apartment market, and the level of supply and demand are remaining within reach of each other.”
Along with a strong sales rate, the weighted average sale price increased by $57,774 in the December 2016 quarter, registering $653,923 – an increase that was felt across every precinct.
“The Southern Beaches precinct recorded the highest increase at $246,358,” Ms Campbell said.
“Premium product influenced this, with the average price of surveyed apartment projects in the precinct ranging from $880,000 to $1.75 million.”
With only 46 apartments remaining for sale in the Southern Beaches precinct at the end of the quarter, Ms Campbell sees a potential under-supply in this market.
Once again, the Coastal Fringe precinct recorded the highest level of sales for the second quarter running, taking on the traditionally beach front located high rise precincts. This is the fourth quarter in three years that this increasingly popular precinct has recorded the highest sales rate.
The Coastal Fringe precinct recorded a total of 165 sales during the December quarter 2016, and 557 throughout 2016 – making up 36 per cent of annual sales. In the December quarter 2016, the Coastal Fringe precinct recorded the most affordable weighted average sale price at $522,121.
Ms Campbell confirmed that the Coastal Fringe precinct picked up pace in the latter half of 2016, with the launch of new apartment projects close to major transport, retail and leisure amenity.
“Sixty-eight per cent of sales were in the Gold Coast Central precinct in the first half of 2016, which is what we have been seeing historically,” she said.
“However, in the second half of 2016 this dropped to just 30 per cent, and the Coastal Fringe recorded over 50 per cent of sales.”
Once again, two-bedroom apartments dominated the market. However, the proportion of two-bedroom apartment sales declined in the quarter to 69 per cent – down from 77 per cent in the previous quarter.
Concurrently, the proportion of three-bedroom product lifted to 22 per cent of total sales – up from 12 per cent in the previous quarter.
“The Gold Coast has always had a three-bedroom apartment market, more so than other areas,” said Ms Campbell.
“The growing down-sizer market is seeing this sector strengthen, and this trend is now beginning to emerge in the Brisbane new apartment market.
“As confidence continues in the Gold Coast new apartment market, 2017 will be an exciting year.”