City Beat August 2023: Gold Coast unit growth continues over winter
The Gold Coast unit market continued to outperform the majority of capital city unit markets in July, CoreLogic's monthly Hedonic Home Value Index found.
There were further one per cent gains in the Gold Coast unit market across July, following 1.5 per cent gains over both May and June.
Only Brisbane (+1.7 per cent) and Perth (+1.1 per cent) performed better in the unit market over July than the Gold Coast.
The Gold Coast median unit value is now $686,000, the second highest median value in the whole of South East Queensland behind the Sunshine Coast's Maroochydore.
It was the fifth consecutive month CoreLogic’s national Home Value Index rose, but the 0.7 per cent rise was softer than previous months.
Since finding a floor in February, the national HVI is up 4.1 per cent, following a -9.1 per cent decline from record highs in April 2022.
Nationally, home values remain -5.3 per cent below the April 2022 peak.
What's happening in the Gold Coast off the plan apartment market?
Anecdotal feedback from agents and developers is that it's business as usual on the Gold Coast.
They've shrugged off the idea that market demand would deteriorate following the COVID-19 pandemic, and while they're not seeing an exorbitant amount of enquiry from those looking to move to the Gold Coast like there was 18 months ago, there's still more than enough demand to outstrip supply in the majority of suburbs.
Siera Property Group Founder and Managing Director, Brent Thompson, says despite some moving parts nationally, the Gold Coast market is more than holding up.
"Given the brisk winter months, broader economic conditions and interest rate environment, things on the ground on the Gold Coast are faring better than most outsiders would anticipate," Thompson says.
Siera Property Group's early enquiry on Pipis, their new luxury Bilinga development, has come from owner-occupiers looking to relocate to the southern beaches on the Gold Coast, as well as Brisbane families who are in the market for a weekender/holiday home.
"Our research has shown these are the region's strongest performing markets and we anticipate continued robust interest from our southern interstate neighbours as most projects on the Southern Gold Coast have reached or are fast approaching the sold-out stage," Thompson says.
"In such a tight market with limited new supply, prices continue to strengthen particularly for properties of a bespoke, one-of-a-kind nature like Pipis."
Siera Property Group has is entering the construction phase of their debut Gold Coast apartment development, Tapestry on Chevron Island.
Thompson says the research phase of the project, some 18 months spent on completing pre-acquisition work on the residential market on the Gold Coast, saw them conceptualised and designed Tapestry for local owner-occupiers looking to downsize.
"To date, we can confidently confirm that this target demographic has encompassed the majority of our lead enquiries from the day of launch right through till now and is expected to continue to lead interest right through to project completion.
"This portion of the market, while often price-conscious spenders, is predominantly debt free and their purchasing decisions are directly correlated to their confidence in the delivery of the project. Due to this, we anticipate our sales to further strengthen as the market starts to see more activity onsite every day. "
Graya are seeing new precedents being set when it comes to pricing, due to a substantial shift in what buyers are willing to pay because of limited supply in the luxury apartment market.
"Demand is not slowing for quality two and three bedroom product on the Southern end of the Gold Coast with limited new product set for delivery," Graya Associate Director Shaun Mets says.
Their Gold Coast projects, Kloud and Ripple, both in Palm Beach, have seen strong demand from the affluent downsizer and empty nester.
"This audience segment understands that buildings are incredibly difficult to replicate due to the industry wide construction crisis and land prices making projects not commercially viable.," Mets says.
"Our downsizer market, who are not necessarily highly leveraged with debt and taking advantage of the current cash rate, are not afraid to overcapitalise for the right property. "
Read more: City Beat July 2023: Gold Coast unit market the strongest in the country
Read more: City Beat June 2023: Gold Coast apartments defy downturn, rebound sharply