THE Gold Coast apartment market is experiencing its highest volume of sales in any quarter since the global financial crisis in 2008, according to the latest Urbis research.
The latest Urbis Gold Coast Apartment Essentials report has found that the September quarter was very active, seeing nine new projects launch and five projects sell out.
Along with an increased sales rate, the level of new apartments remaining for sale at the end of September also lifted over the quarter to sit at 1,375.
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Urbis Senior Consultant Lynda Campbell says with total sales for the year to September equalling 1,236, there is a stable balance of supply and demand.
Ms Campbell said medium-rise projects across the Gold Coast now account for around 50 per cent of all projects and recorded a sales rate of 255 across 30 projects.
This compares to 31 high-rise projects, which recorded sales of 241 during the September quarter.
Ms Campbell said the Coastal Fringe precinct recorded the highest level of sales, out-performing the usually high-performing beachfront locations.
“The Coastal Fringe precinct recorded a total of 255 sales during the September quarter 2016, the precinct’s highest quarterly sales level in three years and accounted for 51 per cent of sales across the Gold Coast,” Ms Campbell said.
Coastal Fringe suburbs include Arundel, Parkwood, Molendinar, Ashmore, Benowa, Bundall, Carrara, Robina, Clear Island Waters, Merrimac and Varsity Lakes.
The Southern Beaches and Northern NSW precincts recorded their highest quarterly sales rate of the last three years with 88 sales during Q3 2016.
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.
This precinct has been undersupplied for many years and the introduction of new projects have gone some way to quench pent-up demand and has resulted in an increased sales rate.
“While new supply has been introduced, the Southern Beaches remains the most undersupplied precinct across the Gold Coast, with only 63 apartments available for sale at the end of September,” said Ms Campbell.
Along with increased sales, the overall weighted average sale price lifted to $596,149 and supply is keeping up with demand, with a total of 496 new apartment sales recorded across the Gold Coast during September quarter 2016.
The Gold Coast’s Central Precinct recorded the largest increase in weighted average sale price, lifting $75,985 during the quarter to record a figure of $685,069 based on 144 sales across 17 monitored projects.
Central suburbs include Labrador, Southport, Main Beach, Surfers Paradise and Broadbeach and Broadbeach Waters.
As confidence returns to the Gold Coast’s new apartment market and developers begin to move forward with projects, the number of pending projects likely to be launched over the following six months has increased to 33. This compares to 22 for the same quarter last year.
Almost half of all the 17 pending projects are in the Central Precinct, with 12 of these located in the suburbs of Broadbeach and Surfers Paradise.
Ms Campbell believes the number of apartments contained within the pending projects list totals 3,944.
“Some of these projects will be staged and may not have the total number of apartments released over the following six months but will be rolled out over several years,” she said.
“With a sales rate of 1,494 during 2015 and 2016 set to eclipse this, the supply level is keeping pace with demand.”
Two-bedroom, two-bathroom product continues its domination of the new apartment market, recording an increased level of sales during the September quarter 2016, lifting to their highest level in 12 months with a total of 367 sales, equating to 74 per cent of total sales.
Urbis Gold Coast Apartment Essentials Q3 2016 snapshot:
- For only the third time in three years, the Coastal Fringe Precinct has recorded the highest quarterly sales rate across the four Gold Coast precincts, with 255 sales during September quarter 2016.
- The GC Central Precinct recorded 144 sales during September quarter, followed by Southern Beaches (88) and North Shore (9)
- Two-bedroom two-bathroom product continues domination of new apartment market.