This article is from the Australian Property Journal archive
The sun has risen again on the Gold Coast apartment market with sales jumping 60% in the last three months, according to the latest research by PRDnationwide.
According to PRDnationwide, the average sale price of a new high rise apartment has also increased, from $716,000 in the December 2005 quarter to $864,000 in the March 2006 quarter.
PRDnationwide’s project marketing manager Tony Holland said the surge in sales was expected as traditionally the December quarter is quieter due to the Christmas period.
“In comparison the March quarter is active as those visiting the Gold Coast from southern states make decisions and finalise their purchases,” he added.
In total 68 developments were included in the survey.
Four projects sold out in the quarter and four new low-rise developments were added, being Aqua Luna and Breezeway at Kingscliff, Cotton Beach at Casuarina Beach and Promenade Point at Robina.
The research breaks the supply level down to 25.6 months for high-rise apartments, 18.5 months for medium-rise and 19 months for low-rise.
The most active development this quarter was Sierra Grand at Broadbeach, marketed by PRDnationwide, which recorded 25 apartment sales for an average of $743,000 – well above the Gold Coast’s average sales rate per project of 3.8 apartments.
According to the research, the Bezzina Group’s luxurious Jade at Surfers Paradise has maintained the highest average sale price for a new apartment at $5.9 million since first released to the market in early 2004, followed by Allure at Surfers Paradise with an average of $4.4 million and HSP’s Hedges 252, located on ‘millions row’ Hedges Avenue, at an average of $2.4 million.
At the other end of the scale low-rise estate Lu Elle Palms at Tweed Heads has an average sale price of $275,000, closely followed by the medium rise Varsity Life @ Bond with an average of $300,300.
Holland said over 50% of the available high rise apartments are represented in Soul, Sierra Grand and Ultima, all of which are yet to commence construction and hence will not be completed for at least another two years.
“In the medium-rise sector 40% of projects are nearing sell out with less than 20% of stock remaining.
“It is not unusual for a sales lull to then occur until construction is near completion,” he added.
Holland said 63% of rise sales in the medium rise sector were in excess of $1 million and this is a reflection of the Gold Coast’s strong economy and end users securing quality apartments in close proximity to the beach.
“Developers have strategised the release of stock which has balanced the Gold Coast’s new apartments supply level and that is very encouraging for the future.
“If there is an orderly release of new apartments, we should see an orderly take up of stock continuing in the next quarter, June 2006, and beyond.
“The positive fundamentals of an expanding population, strong economy and general strength of the property market on the Gold Coast are ensuring that interest in the residential property market remains strong,” he concluded.
By Kathryn O’Meara
