City Beat August 2023: Gold Coast unit median approaches $700k following August growth
The Gold Coast unit market continues to power ahead in 2023.
August marked another month of plus one per cent gains (1.2 per cent), according to property data analytics firm CoreLogic. The 1.2 per cent topped the growth of Sydney (one per cent) Melbourne (0.3 per cent) and Brisbane (1.1 per cent) in August.
The median value of a unit (which is both apartments and townhouses) is now $692,000, following rolling quarterly gains of 3.7 per cent. Unit values are now 0.3 per cent higher than they were 12 months ago.
Read more: City Beat August 2023: Gold Coast unit growth continues over winter
What's happening in the Gold Coast off the plan market?
Spring is generally the time Gold Coast sees the most development launches on the calendar. But as developers monitor construction costs and availability of builders, it might be a quieter period than usual for new project launches.
Ideally developers have their projects hit the market in the lead up to the summer holidays and the Christmas rush, particularly now there's a higher appetite from southern capital city holidaymakers to buy either a holiday home or eventual retirement pad since COVID-19 highlighted the lifestyle factors the Gold Coast has.
It is construction however that is really the pressing matter on the Gold Coast.
Dean Muldoon, LJ Hooker New Developments Managing Director, has seen enquiry levels tick up since construction kicked into gear on their LAANI development in Mermaid Beach.
LAANI, which is being by local developer DANKAV who a few years ago completed MALI a 200-metres away on Alexandra Avenue on the fringe of Broadbeach, comprises just 50 apartments across 18 levels, a maximum of four apartments per floor. The BDA-designed project also features a heated lap pool and adjoining day beds, a gym with a sauna, a cinema room, shared office space, a private dining room, and an outdoor sunken lounge and barbecue space.
Muldoon says once a builder has been engaged, buyers know they can work to a more structured timeline, and work out what the next 18 months look like for them leading up to project completion.
The impact of 12 rate hikes since the start of 2022 hasn't really impacted LAANI, with most buyers empty nesters and downsizers.
Kollosche's Head of New Projects Jamie Harrison says the early arrival of spring on the Gold Coast has ignited buyer interest.
"We've seen a more discerning buyer emerge recently, seeking greater assurances and taking longer to decide," Harrison says, adding that buyers are also seeking greater certainty around those behind the project and their ability to deliver.
"The Gold Coast's new development market is 30 per cent undersupplied meaning those capable of project delivery or with builder access are poised for success."
Kollosche recently launched ARI, the beachfront Main Beach project by the Stamoulis family.
The Main Beach Parade, residents-only tower of 26 half-floor residences and three full-floor sky homes has proven popular for downsizing locals in particular, as well as Brisbane and interstate buyers who want absolute beachfront. They also had similar enquiry at Navini in Bilinga, which is also appealing to lock and leave interstate buyers given its proximity to both the coast and the Gold Coast Airport.
Navini, also under construction on Bilinga's dress circle Golden Four Drive, has just 16 three-bedroom apartments, starting from $2.98 million.
Harrison says believes smaller, boutique projects of between 15 to 30 residences could address the lack of capacity among larger builders while catering to buyer appetite.