16 Mar 2017

The Gold Coast new apartment market ended 2016 with an annual sales level of 1,555 sales, according to the latest research by property consultants Urbis. This is the strongest performance recorded since 2007.

With 325 new apartment sales in the December 2016 quarter, and despite a slight downturn from the previous quarter – the Gold Coast apartment market finished the year positively, with increased activity in the sector. This positive activity is expected to continue into 2017.

Along with the healthy sales rate, only 1,372 apartments remained available for sale at the end of December 2016, which equates to less than one year’s worth of supply.

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.”

  • 1,555 sales recorded in 2016 – the highest annual sales level since 2007
  • Weighted average sale price recorded at $653,923, an increase of $57,774
  • For the second quarter in a row, the Coastal Fringe Precinct has recorded the highest quarterly sales rate across the four Gold Coast precincts, with 165 sales during December quarter 2016
  • The GC Central Precinct recorded 110 sales during December quarter, followed by and Southern Beaches (45) and North Shore (5)
  • Three-bedroom product proportion increased to 22per cent of total sales – up from 12 per cent in the previous quarter. Though two-bedroom apartments are still the most popular product type (69 per cent of total sales).

*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.

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