Gold Coast new apartment surge to seven year high in sales activity: Urbis research

New apartment sales activity on the Gold Coast has spiked by more than 30%, indicating strong demand for new launches, according to the latest data.

The number of transactions in the July to September quarter rose to 416 among 47 projects. 

It was up from 314 in the previous quarter, says the Urbis Gold Coast Apartment Essentials report. 

The two-bedroom, two-bathroom product remained the most popular across all precincts, equating to 69% of total sales.

Urbis senior consultant Lynda Campbell said increased supply coupled with strong buyer demand, had fuelled this quarter's sales activity growth.

“The Gold Coast apartment market is continuing to break records in 2015 with sales in the first three quarters combined (1,041) overtaking the total yearly sales for 2014 (825),” Campbell said.

“The latest report shows that sales this quarter increased by 253 compared to the corresponding quarter for 2014 which recorded a total of 163 sales – an increase of more than 150%.

Seven new projects have launched this quarter with another 22 set to launch over the next six months, bringing another 2,165 new apartments to the market, she said.

“As apartment prices in capital cities become less affordable, the Gold Coast is attracting a greater share of the investor markets, who are seeking value for money, return on investment and lifestyle opportunity,” Campbell said.

The overall LGA Gold Coast median apartment price in June, which includes new and existing apartments, was $360,000 – significantly more affordable than Sydney ($650,000), Melbourne ($470,000) and Brisbane ($429,000).

“The Gold Coast has welcomed 23 new apartment project launches during the past 12 months. This is driving a competitive market for developers who have become more savvy and sophisticated in their designs and amenity offerings - giving buyers more choice.”

The majority of activity was concentrated around the Gold Coast Central* precinct which recorded 206 transactions, or almost 50%, of total sales. This precinct also holds the largest pending supply with a total of 909 apartments in nine towers which are expected to enter the market over the next six to nine months.

The Gold Coast’s new apartment market has reached its highest level of apartment sales in seven years with five consecutive quarters of increased sales volumes.

The 416 sales during Q3 2015 compared to 163 sales in Q3 2014 and 314 in Q2 2015.

The weighted average sales price of apartments on the Gold Coast is $553,245 - decreasing by $5,593 compared to Q2 2015.

The Gold Coast Central precinct recorded 206 sales or 52% of total apartment sales with an average weighted sale price of $579,854.

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 $455,000.

The Southern Beaches* remains the highest priced precinct on the Gold Coast to buy a new apartment with an average weighted sale price of $924,038.

*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.