A few surprises as unit prices surging
WHILE the appetite for luxury beachside apartments has been building all year, a shift has taken place just behind the glittering coastline.
It was little surprise to see unit prices in iconic Burleigh Heads lead the charge over the September quarter, climbing 11.8 per cent in the three months to September, latest CoreLogic figures show.
The coastal hotspot was trailed by Burleigh Waters (+11.1 per cent); Miami (+10.8pc); Mermaid Waters (+9.4pc); and Broadbeach Waters (+9.3pc).
But beyond the big-hitting beachside suburbs, the more affordable areas where median property prices sit below the Gold Coast average held their own.
Unit prices in Pacific Pines in the city’s northern growth corridor climbed an impressive 8.5 per cent in the last three months, edging ahead of popular Palm Beach, Tugun and Currumbin for the quarter.
A unit in Pacific Pines will now set you back around $439,862, compared with Currumbin, where the median price hit a huge $804,878.
Tim Wolff, of LJ Hooker Solutions Pacific Pines, said first-home buyers dominated the local market, where a modern three-bedroom townhouse could still be secured for under $500,000, thereby attracting discounted stamp duty.
Units in Pacific Pines and the surrounding areas of Oxenford and Maudsland were being snapped up within a week of listing, with sellers confident of making a profit as supply becomes scarce.
“We haven’t had an increase in unit pricing for a long period of time since the majority of these units were built. Subsequently, owners sustained a bit of a loss from their original purchase price and up until 12 months ago they were still selling for the same amount or less,” Mr Wolff said.
“Now, the market has expanded and if it keeps running, whatever a buyer purchases today is going to look cheap in three months.”
Mr Wolff advised buyers to be prepared to act fast, as an influx of investor activity was expected when state borders reopened.
Nearby Coombabah also performed strongly, clocking 8 per cent growth in unit prices over the quarter to reach a median of $447,077.
That result was on par with Palm Beach, the trendy enclave leading the shift to rightsizing with the city’s highest concentration of new high-end and full-floor apartments. Median apartment prices in Palm Beach soared to $744,351.
Nerang was another to watch, sneaking in just behind with 7.9 per cent growth to a median unit price of $407,212.
REMAX Coast agent Mark Hatton said “demand is far outstripping supply” in Pacific Pines and surrounding areas traditionally favoured for their entry-level property options.
Families were drawn to the suburb’s good schools, easy access to transport links, shopping centres, theme parks and other recreational facilities including skate parks, Mr Hatton said.
“We have seen the average unit rise in cost by $30,000$40,000 since December 2020, and it is now common for sellers to receive perhaps 10 to 15 offers - often from families who have lived in the area and love the community and are wanting to break out of the rental cycle and move to ownership,” he said.