THE Gold Coast apartment market is running firmly to script as sales in the June quarter rose to their best level in five years, with no sign that the pace is going to let up soon.
According to the Urbis Gold Coast Apartment Essentials report, sales across 44 new projects surged to 314 in the June quarter, bringing total sales in the year so far to almost 1100.
This is up 34 per cent from the last peak five years ago, says Urbis senior consultant Lynda Campbell, who says affordability has been the key driver.
The weighted average sales price over the period stood at $558,838, which is down about $54,000 from the first quarter due to a surge in sales in what Urbis calls the Coastal Fringe area, which is immediately west of the Gold Coast beachfront.
However, Campbell says price increases are inevitable despite a strong supply chain developing across the city’s key markets.
“Six new projects have launched this quarter with the possibility of another 22 project launches between now and the end of the year,” she says.
“This would bring another 2500 new apartments on to the market which will keep supply levels strong into 2016.
“We will start to see some price increases in the coming year as new projects are released in prime locations, which is likely to increase demand from overseas and interstate investors.”
The $1 billion Jewel project, where two-bedroom apartments start at $1.4 million, will provide the biggest uptick in the weighted average as sales settle towards 2018.
Although Jewel is poised to start construction soon, a strong run of projects planned for Southport, Surfers Paradise and Broadbeach are still yet to proceed.
The Coastal Fringe accounted for 159 of the record-breaking numbers, or half the total, with a weighted average price of $436,950.
“The precinct offers affordable product and access to major entertainment and retail hubs, providing flexibility for families and for investors,” says Campbell.
“This is only the second time the Coastal Fringe has been the best performing precinct with the Gold Coast Central precinct usually claiming the top spot.”
Written by: Nick Nichols, 17 September, 2015
Source: Business News Australia