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We’re expecting an increase in sales in the coming months, which is going to put further pressure on supply of new apartments all along the coast, but particularly in the Southern Beaches.
Lynda Campbell, Senior Consultant
“Some areas of the Gold Coast have less than three quarters worth of new apartment stock available for sale,” Ms Campbell said.
“The areas under the greatest pressure are the Southern Beaches, which has approximately five months of new apartment stock available for sale, and the Coastal Fringe, which has only eight months of product for sale.”
Ms Campbell said in the past quarter six new projects were added to the survey while six existing projects had sold out.
“Growth on the Gold Coast is very strong with more than $11 billion in infrastructure projects driving the economy. Increased tourism and relative affordability, compared to capital city markets has renewed confidence in the region,” Ms Campbell said.
The Urbis report revealed total sales for the last quarter were steady, reaching 304 from 38 surveyed projects, which was similar to last year – and close to double the figures of 2014. The figure was also well above the five and 10 year averages of 221 and 248 respectively.
The number of apartments available for sale at the end of June by precinct were North Shore (199), Gold Coast Central (666), Coastal Fringe (229) and Southern Beaches (51).
“We believe some buyers were sitting on the fence last quarter because of uncertain economic conditions brought about by the federal election and the end of financial year,” Ms Campbell said.
“We’re expecting an increase in sales in the coming months which is going to put further pressure on supply of new apartments all along the coast but particularly in the Southern Beaches.”
The average sale price across the Gold Coast in the last quarter was $579,997 with the most popular product being two-bedroom, two-bathroom apartments.
The Gold Coast Central precinct recorded the most activity for the fourth consecutive quarter with 203 unconditional sales at an average price of $609,084. Of the 27 active projects in the precinct, 23 are completed or under construction, leaving just four projects in presale phase.
The Coastal Fringe recorded 50 sales at an average price of $451,000, the North Shore had 37 sales at $533,108 and the Southern Beaches had 14 at $742,857.
Ms Campbell said there had also been a 55 percent increase in the number of developments “deferred” over the past 12 months.
“Projects tagged as deferred may eventually proceed to the marketing and construction phase but it is unlikely to occur in the short term.”
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