GOLD RUSH: REACHING NEW HEIGHTS IN GOLD COAST’S ROBUST APARTMENT MARKET
Earlier this year, Gold Coast new apartment sales surged by nearly 100%. The region recorded a total of 742 new units sold in the first quarter of the year, a figure that was almost double that of the previous quarter.
This is the highest level of activity in more than eight years. When the region hosted the Commonwealth Games in 2018, the international spotlight and over $200million of upgrades and infrastructure jump-started a rush of action and investment in the sunny beach-lined shores.
Demand is driving prices sky-high
Gold Coast is now one of the fastest-growing regions in the high-demand Queensland property market. Second, only to the Sunshine Coast, which saw an increase of a whopping 23.1% increase in prices for houses over the past 12 months, Gold Coast house prices shot up by an impressive 18.2% over the same period, bringing the median to a record $792,000 – which is $122,000 more than in June 2020.
It’s no surprise that the apartment market followed the same trend, whereas, not a single suburb in Gold Coast recorded a decrease in apartment prices over the last year. Palm Beach was the winner, where prices rose by 29% annually, followed by Mermaid Beach, Tugun, Coolangatta and Mermaid Waters. (Source: Gold Coast apartment market is alive and kicking, RealEstate.com.au)
The source of the demand is not only from within Queensland but also from unprecedented migration from the south.
“It’s not just the lifestyle and better weather that they are seeking. Buyers and investors from Sydney or Melbourne are seeing value in the Gold Coast market,” says Matt Sully, CEO of APFG. “For the same price as a property in the large cities, they can purchase a brand new, beachside modern luxury apartment that is located in a beautiful beachside area that is also forecasting better returns. Property investors can also see higher rents and cash flows on a weekly basis.”
See More: Queensland Reigns Supreme
New-build luxury apartments are selling out before they are finished
Median prices aside, it’s the luxury apartment sector that is pushing Gold Coast prices skyward.
Last year, listings on Realestate.com.au for $1 million-plus units increased by 17% compared to 2019, while views per listing were up by 38%. Interest was particularly high in Burleigh Heads, Broadbeach, and Surfers Paradise.
The current skyline is dotted with dozens of brand new high-rise developments lining the shores, while more lots are secured for future builds. These modern buildings feature contemporary design by internationally recognised architecture firms, elegant and state-of-the-art interiors and finishes, as well as exclusive amenities like gyms, spas, indoor and outdoor pools, and restaurants.
Even with the developments, the demand for off-the-plan, high-end properties currently outweighs the supply that is in the pipeline. Most new-build developments on the Coast are partially or fully selling out before a single brick has been laid. Buyers who nabbed a unit or two pre-Covid are set to enjoy big returns in the coming years. (Source: Gold Coast development: why off-the-plan buyers are sitting on big gains, RealEstate.com.au)
Price increases are having little effect on the overwhelming demand, with buyers willing to pay $15,000 to $20,000 a square metre for a boutique beachfront apartment.
Investing on the Gold Coast through APFG
“The time to get into the market is now, the earlier the better,” says Sully.
APFG offers clients smart investment strategies, to take advantage of this unprecedented period of growth on Gold Coast.
- The lowest investor rate on the market, 1.5% Investor Owner-Occupier rate
- For Chevron One buyers, Bensons Property Group offers an investment fund, with a guaranteed 8% return
- Deposit Bonds through QBE, which can be for up to 5 years, allowing you to use your cash deposit more efficiently.
Talk to an APFG Property Manager today, about your future Gold Coast luxury apartment.