Gold Coast apartment sales surge 80%: Urbis
New apartment sales on the Gold Coast jumped by more than 80 per cent in 2015 and the trend is expected to continue this year, with two-bedroom homes the most popular, according to new research by consulting firm Urbis.
A total of 1,494 new apartments were sold last year compared with 825 in 2014, reveals the latest Gold Coast Apartment Essentials report.
Affordability, foreign investment and population growth contributed to quarter-on-quarter sales growth in 2015, said Urbis senior consultant Lynda Campbell.
“The Gold Coast apartment market has experienced its highest level of activity in almost eight years, after a lag in residential construction following the global financial crisis,” Campbell said.
Urbis said it was monitoring 26 new projects which could launch during the next six to nine months and bring some 2,500 new apartments to the market, which at the current sales rate, is roughly 18 months’ supply. However, demand is expected to increase as the Gold Coast experiences one of the highest rates of population growth (2.3 per cent) in South East Queensland, the latter figure is according to the Queensland Treasury and Trade.
“Retail, health and transport projects including the $670 million redevelopment of Pacific Fair Shopping Centre and stage two of the Gold Coast Light Rail are expected to continue to drive lifestyle factors and demand in 2016.”
Sales activity ramped up in the last quarter of 2015 with 453 transactions across 58 projects, compared to 416 sales in the previous quarter and 303 in the corresponding period of 2014.
The luxury apartment market also experienced a sales surge between October and December with 37 sales exceeding $1 million, compared with 12 in the previous quarter and 18 in the corresponding period of 2014.
The majority of activity was around the Gold Coast Central precinct which recorded 254 transactions for the quarter and 714 sales in total for 2015.
The two-bed two-bath apartment product was the most popular product type for the year with 428 total sales across the precinct.
*Coastal Fringe suburbs include Arundel, Parkwood, Molendinar, Ashmore, Benowa, Bundall, Carrara, Robina, Clear Island Waters, Merrimac and Varsity Lakes.
*Gold Coast Central suburbs include Labrador, Southport, Main Beach, Surfers Paradise and Broadbeach and Broadbeach Waters.
*Southern Beaches suburbs include Bilinga, Burleigh Heads, Burleigh Waters, Casuarina, Coolangatta, Currumbin, Kingscliff, Kirra, Mermaid Beach, Mermaid Waters, Miami, Palm Beach, Tugun and Tweed Heads.
Urbis Gold Coast 2015 Q4 Apartment Essentials report snapshot:
- The Gold Coast apartment market has experienced its highest level of activity in almost eight years.
- The Gold Coast’s new apartment market has witnessed six consecutive quarters of increased sales volumes.
- The Gold Coast recorded a total of 453 sales during Q4 2015 compared to 416 sales in Q3 2015 and 303 in Q4 2014.
- The weighted average sales price of apartments on the Gold Coast is $609,658 - increasing by $56,416 compared to Q3 2015.
- Based on surveyed data, the Coastal Fringe* remains the most affordable precinct on the Gold Coast to buy a new apartment with an average weighted sale price of $429,321.
- Based on surveyed data, the Southern Beaches* remains the highest priced precinct on the Gold Coast to buy a new apartment with an average weighted sale price of $905,102.
- The two-bed two-bath product remained the most popular across all precincts, equating to 65 per cent of total sales.