Property boom with Gold Coast apartment sales
‘Perfect storm’ for property boom with Gold Coast apartment sales highest since GFC
NEW Gold Coast apartments have recorded the highest sales volumes since the Global Financial Crisis with predictions the region could soon face a severe lack of supply, according to a report released by leading property consultants Urbis.
The Gold Coast Apartment Insights found the December 2013 quarter recorded almost 300 unconditional sales — the best result in three years.
But Urbis director of apartment advisory Jon Rivera said the now low supply of new apartment stock would be an issue on the Gold Coast during the next six to twelve months.
“Current supply is sitting at 635 apartments which, based on the current selling rate, could be taken up within six months,” Mr Rivera said.
“However, if the Gold Coast apartment market has the uplift that is expected, the anticipated supply could also be exhausted much faster.”
Mr Rivera said while it was still a buyers market on the Coast, the window was closing after ripe buying conditions in 2012 and 2013 sparked a slight rise in property prices.
He believed the Coast was now smart enough to avoid the inevitable pitfalls of a boom with a few different factors able to sustain the next major rise.
“It’s not just relying on tourism anymore … and it’s also becoming more of this actual wave,” he said.
Over the last year apartment and townhouse transactions over $1 million significantly increased across the Coast for the first time in five years, a fact Mr Rivera said indicated a recovering market.
Last year 262 Gold Coast apartments were transacted at over $1 million compared to 2012 which recorded 215 sales.
Mr Rivera said during 2013, the suburb which attracted the highest number of $1 million plus apartment sales was Surfers Paradise which accounted for 50 per cent (132) of the total 262 sales.
Following Surfers Paradise was Broadbeach which attracted 46 $1 million plus apartment buyers.
“During 2013 the building that attracted the highest number of $1 million plus sales was Soul with 77 settled sales,” Mr Rivera said.
“Sales in this segment peaked during 2007 with more than 700 recorded sales and then declined until last year when a 22 per cent increase was recorded.”
The overall Gold Coast median apartment price for 12 months ending December 2013 was $348,000 based on 8,483 sales including all settled apartments, new and resale.
The median sales price has remained relatively static over the last 12 months with a slight decline of 0.6 per cent.
Long term growth is recorded at 3.6 per cent, per annum over 10 years.
Mr Rivera said current market conditions were combining to make the “perfect storm” for a Gold Coast property boom.
“The combination of infrastructure delivery, low supply, a boost in tourism and migration, the upcoming Commonwealth Games as well as the return of empty nesters to the coast are combining to make the property market surge,” Mr Rivera said.
“I believe 2014 is the last we will see of the “bottom” of the market and, with the upward trends and market conditions, 2015 could be a new peak for the Gold Coast.”
Mr Rivera said around 1,700 new apartments could enter the market over the next six to twelve months which would alleviate supply issues to a certain extent. However, the expected uplift in sales volumes, would see this stock also taken up quickly.
He said the majority of new stock is planned for centrally located suburbs between Biggera Waters and Broadbeach which leaves the remainder of the Gold Coast with limited supply going forward.