After slow marketing start, sales picking up at Salacia Waters as Gold Coast market shows signs of life

More than two and a half years after marketing began, sales have picked up steam for luxury Gold Coast development Salacia Waters.

Marketing began for the 131-unit, 13-villa project in January 2010, and thus far there have been 33 sales, about two-thirds of those since July this year.

Julian Sutherland of Ray White says buyers on the Gold Coast are coming out of a "post-GFC hibernation".

“Investors and owner-occupiers alike are attracted by the opportunity to pounce on the value presently on offer at Salacia Waters, where apartments are available from $400,000,” he says.

Sutherland says the $15,000 Queensland first-home owner construction grant, which replaced the $7,000 first-home owner grant in early September following the announcement of the Queensland budget, has helped spark sales at Salacia Waters.

“This value proposition in such a quality waterfront development combined with a lower interest rate environment and the reinstatement of a stamp duty exemption have galvanised buyers to act,” he says.

Other property commentators have also suggested a recent turnaround in the Gold Coast, with SQM Research director saying the market in the area is “showing signs of bottoming out”.

In February this year Christopher said he agreed with comments made by Sunrise presenter David Koch that the Gold Coast property market was "catastrophic".

Also last week, Midwood Report author Bill Morris pointed out that the amount of high-rise apartment stock on the Gold Coast had halved in the past two years.

“There should no longer be the perception that Gold Coast high-rise apartments are oversupplied,” Morris said.

Salacia Waters units range in size from 97 square metres to 369 square metres and are priced from $399,000, with luxury villas priced from $740,000.

Sutherland says they should appeal to investors as well as owner-occupiers in the area.

“With the city facing a dwindling supply of apartments, particularly in waterfront locations, investors are well positioned for strong income flows," Sutherland says.

The first stage of the development was finished in October 2010, but planned future stages were put on hold due to poor sales and the struggling Gold Coast market.

Sutherland says developer Lotte Engineering and Construction is hoping the recent upsurge in buyer activity would enable the developer to continue with further stages.

Salacia Waters is in Paradise Point and surrounded on three sides by water. The development includes a 72-berth marina with deepwater access for keen yachties.

Lifestyle amenities in the building include a gymnasium and several swimming pools.