Unit frenzy sets record
A WAVE of new apartment developments across the Gold Coast has buyers in a frenzy with new data revealing sales are the highest they’ve been in 12 months.
The new apartment market recorded 278 sales in the March 2018 quarter, according to research by property consultants Urbis.
That’s a 33 per cent increase on the previous quarter.
Owner occupiers made up 42 per cent of sales followed by interstate investors at 28 per cent, local investors at 20 per cent and foreign investors at 10 per cent.
“The Gold Coast is more than just a premium tourist destination – it is a place to live, work and play,” Urbis senior consultant Lynda Campbell said.
“The apartment lifestyle makes sense for a range of Gold Coast residents, including downsizers.”
The Gold Coast average sale price was $729,856, the highest level recorded in three and a half years.
The central precinct – Labrador, Southport, Main Beach, Surfers Paradise, Broadbeach and Broadbeach Waters – recorded the highest average sale price at $800,625, which was driven largely by the launch of a number of projects in Broadbeach.
It recorded the highest quarterly sales rate with 160 during the quarter – or 58 per cent of total sales.
“As we predicted, 2018 was off to a strong start for the Gold Coast apartment market,” Ms Campbell said.
“New project launches stimulated sales in the quarter, and with a possible 19 new projects to launch in the next quarter, supply has definitely stepped up to meet demand.
“Though some of our other cities may have seen a slow down in sales, things are looking sunny on the Gold Coast.”
However, research by REA Group showed demand for units was down eight per cent across the city in the six months to April 30 compared with the same period last year.
The findings were based on property views per listing.
Approvals to build new apartments dropped in the quarter to 1385 - the third consecutive drop since mid-2017.
But compared to Brisbane, where 300 were approved in the same period, the pipeline of supply continued to increase.