Demand behind Main Beach spike

PROSPECTIVE buyers on the hunt for an apartment in one Gold Coast suburb will need deep pockets with some costing more than a small house.

Main Beach recorded the city’s highest unit price with a median of $717,500, according to the latest CoreLogic data.

Hollywell was hot on its heels with a median of $707,500, followed by Paradise Point ($690,000), Bilinga ($678,000), Coolangatta ($580,000) and Broadbeach ($554,500).

REIQ Gold Coast zone chairman Andrew Henderson said he was not surprised by the results, explaining prices were driven by demand and location.

“The apartments they built in Main Beach are like the new ones they’re building now – they’re built for the owner-occupier,” he said. “That’s where the demand is.”

He said even more central suburbs such as Broadbeach and Broadbeach Waters, which have traditionally been home to rentals, were changing to meet the demand.

“A lot of the older-style apartments were for holiday accommodation.

“You’re seeing the current stock that’s being built to be towards that owner-occupier.”

More apartment towers were rising across the Coast, particularly luxury boutiques with larger floorplans and amenities to suit owner-occupiers in popular locations.

Developer Andrews Projects was building its second apartment project, Encore, in Broadbeach. Sales manager Sarah Andrews said the company chose the suburb because it “ticked all the boxes”.

“We are very particular about the projects we pursue and Broadbeach ticks all the boxes for what we look for in a location for our apartment towers,” she said.

“It is not only picturesque and home to the Gold Coast’s best and widest range of entertainment and dining options but boasts a level of infrastructure and public transport options to rival anywhere.”

While new apartments are becoming increasingly popular on the Coast, the Real Estate Institute of Queensland (REIQ) has urged people to be cautious when buying off the plan following the collapse of developer Ralan Group.

While deposits are often kept in a separate trust account, some purchasers elected to release deposits through a side agreement. Hundreds of people risk losing their deposits for apartments at Ruby Collection as a result.

“This is a reminder of the importance of seeking legal advice and undertaking appropriate due diligence when making these types of purchases,” REIQ chief executive Antonia Mercorella said. “Ultimately, the developer may never proceed with the build for a number of possible reasons, such as if pre-sales aren’t met or, in extreme situations such as the Ralan case, the developer could fall into administration.”