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The number of sales achieved across the residential property markets on the Gold Coast is continuing to strengthen. The data in Table 1 shows house prices and unit prices are improving. Published data is current at September 2015 but anecdotal evidence from agents and our developer clients points to a reasonable response to sales campaigns from local buyers and investors.
The table below, courtesy of the REIQ shows the property price movement over the past year (to September 2015). Strong increases in the number of sales of Houses were recorded in Surfers Paradise, Broadbeach Robina and Palm Beach. The greatest change in both number of sales and prices achieved was recorded in Robina due to the release of new freehold town homes by the Robina Group.
The apartment market on Hope Island was the star performer for that quarter again influenced by the settlement of new projects. The results recorded for Broadbeach units are not cause for alarm as these figures do not take into account off-the-plan sales in the high-rises currently under construction.
The Off the plan sales as reported by Urbis in the Gold Coast Apartment Essentials September report, were at their highest level in seven years. A total of 461 apartments were released in the September 15 quarter and there were 416 sales. Central Gold Coast locations, including Southport, Surfers Paradise and Broadbeach accounted for almost half of the sales reported (206) in the quarter.
There were 23 new apartment projects released to the market n 2015, it appears that sales were keeping up with the supply of new stock. There were 825 transactions recorded in 2014, already by Sept 2015 there were 1,130 off the plan reported sales. If those trends continue over 1,500 off the plan sales will be forecast for the 2015 year.
“There is a real confidence in the Gold Coast which will continue in the next few years because, compared to other states, we are more affordable and interest rates are still low,” said Lynda Campbell from Urbis.
TABLE 1 – PROPERTY MARKET TRENDS – SEPT QTR 2015
|Houses (land <2400sqm)||Units & Townhouses|
|Median Sale Price||Annual ChangeMedian price$||No. Sales QtrChange||Median Sale Price||Annual Change median price $||No. Sales Qtr Change|
|GOLD COAST LGA||$545,000||7%||3.8%||$345,000||-1.4%||-1.4%|
Source: QMM – January 16 issue 28 REIQ.
TABLE 2 – WEEKLY RENT
|Median Weekly Rent|
|House($)||2 Bed Unit($)||3 bed Townhouse ($)|
|GOLD COAST LGA||450||380||400|
Source: REIQ Residential Rental Survey for Sept. 2015
The Gold Coast rental vacancy rate tightened to 1.7% in the September 2015 quarter resulting in the supply of rental accommodation reducing. Despite this median rental prices have remained steady.
The demand for rental accommodation is continuing to grow along with the increases in supply of apartments for rental producing a balanced market and stable rents.
The increase in population attracted to the Gold Coast region, estimated at 12,000 per year represents a NEW demand for 5,500 new dwellings every year. An additional number of apartments are required to supplement the tourist accommodation need across the city.
Recent media articles have noted the marked rise in residential building approvals on the Gold Coast in the past year. With 6,600 residential construction approvals for 2015/16 and 4,800 the previous year.
Source: ABS- Building Approvals , OESR QLD Treasury, Kerrie Young Property
Some industry commentators have been concerned about potential ‘oversupply’. These concerns are in my opinion unfounded. For the prior three years the Gold Coast has not produced enough residential stock to meet the underlying demand for housing (required by the population growth).
We are still in effect in ‘catch up’. The continuing price growth in the general market, stable rental market at very low vacancy rates and apparent balanced supply and sales in the off the plan apartment market supports this view.
SSKB works with Developers across all three states on the eastern seaboard, our community managers have 28,000 properties under management are well versed in trends in their local communities. Kerrie Young and the Development Consulting team are available to meet with developers at the inception of a new community or apartment project to use our experience to assist with the due diligence process.
SSKB’s New Projects manager, Kerrie Young is experienced in both Property Market research and Project sales and marketing. She maintains an overview of trends in supply and demand in the property markets in which our clients operate.
Kerrie Young AAPI FDIA – Developer Consulting Team New Projects Manager
Mob: 0408989760 email@example.com