While Brisbane has experienced a modest 7% of available stock sold, Gold Coast recorded 9%, bouncing back upwards with the March 2019 quarter being the second consecutive quarter the Gold Coast has sold more new apartments than Inner Brisbane.
The March 2019 quarter has recorded 231 new apartment sales. New boutique style apartment buildings have been popular over the last few quarters and have been key in driving sales by meeting current market demand. This is evident in the Southern Beaches Precinct, which comprises Mermaid Beach to Tweed Heads.
Previously accounting for only one quarter of sales in 2018 Q1, the Southern Beaches has recorded over 60% of sales in the March 2019 quarter. This is the highest level of sales this precinct has recorded in the five years Urbis has been monitoring the new apartment market.
Two-bedroom two-bathroom products recorded the highest level of sales with 65% of total sales, followed by three-bedroom with 15% during the quarter.
During the March quarter, all of the four new projects launched across the Gold Coast were within the Southern Beaches Precinct. These projects gave a hefty push to the sales volume, accounting for 19% of this quarter’s sales. While the North Shore precinct has been recording a low sales rate over the last two years, five projects are expected to launch over the next six months which are likely to boost the precinct’s sales rate.
Five projects comprising 591 units moved into construction in the quarter, up 65% from the previous quarter. There are currently around 2,800 apartments under construction across the Gold Coast, 62% of which are expected to reach completion this year.
Interstate investors held back in the new year, accounting for only a quarter of buyers after claiming the majority of apartment sales in Q4 2018 with 42%. Concurrently, foreign investors picked up the pace and also claimed almost a quarter of sales. With recent activity around the country slowing down, it’s clear why the Gold Coast is now being targeted by overseas investors. Owner occupiers dominated sales in the quarter with 43%.
Contact our Property Economics and Research team to find out more.