THE ONLY WAY TO GO IS UP: GOLD COAST LAND AND STOCK IN SHORT SUPPLY, SENDING APARTMENT PRICES SKYWARD.
The newest numbers for Queensland migration continue to astound experts with 43,000 new residents flooding the state in the last 12 months, a trend that is expected to hold steady at 40,000-50,000 annual arrivals through 2026. (Read more: Queensland Reigns Supreme: The jaw-dropping Queensland migration numbers)
Particular focus is on Gold Coast. The city created a population task force in March and estimated the need for 6,500 new dwellings each year to accommodate the population growth. However, as a linear city that due to natural topography of being locked between shoreline to the east and mountains to the west, land availability is becoming increasingly scarce.
Developers cautioned that with the current situation and growth rates, Gold Coast has less than five years’ worth of land for new housing estates.
City planners deemed the only possible solution, is to build upward, not outward. The only way to accommodate more residents on the available land is to build more multi-story and high-rise apartments.
“That approach relieves some of the pressure on our green space and importantly, accommodates the population where the major public transport services are,” said Gold Coast mayor Tom Tate.
There are currently more than 50 residential projects under construction and with firm pipeline commitment within Gold Coast, all totaling an estimated $4.8 billion of investment value. However, these planned projects do little to fulfill the current demand.
The current sales rate gives the market little more than four months’ supply of apartments if no new projects are released.
Gold Coast property prices reach new records in June
The growing demand for Gold Coasts property is forcing prices skyward as well.
While Gold Coast property prices hit a record high in June, prices just went up another $17,000 last week, hitting a new record, at $797,000. Apartment prices also went up $10,000 to hit $485,000. (Source: Gold Coast house prices on the move again, RealEstate.com.au)
For new, luxury apartments, the numbers are even higher.
Earlier this year, new apartment sales surged by nearly 100%, with the region recording a year’s worth of sales in just three months between January and March, with sales figures totaling $787 million. The average price for these sales was $1.061 million, with the average price of new apartments up more than 42% in just two years.
“Even though the prices keep going up at incredible rates, the amount of interest we are seeing, particularly in the luxury apartments, is astounding,” says APFG CEO Matt Sully. “Any units that are hitting the market below $1 million are guaranteed to sell fast, especially because buyers know that the returns will put those units over the $1 million price point in a very short amount of time.”
How high can prices go? Analysts at ANZ have joined other major banks in predicting a further 20% jump in Queensland prices as a result of continued migration and also confidence in buying and selling during lockdowns.
Talk to the team at APFG today
APFG has a selection of Gold Coast properties available, including Chevron One by Bensons and Regal Residences at Imperial Square.
Additionally, we offer clients smart investment strategies:
- Chevron One buyers, Bensons Property Group offers an investment fund, with a guaranteed 8% return
- 0.75% Investor Owner-Occupier rate
- 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.