The Gold Coast new apartment market recorded 255 unconditional sales in the March 2017 quarter - a decline on the previous quarter's sales - but for the fifth time in two years the 'Coastal Fringe Precinct' has been the top performer, according to Urbis.
Urbis Senior Consultant Lynda Campbell says the Gold Coast apartment market is no longer centred on beachfront locations.
“Coastal Fringe suburbs such as Robina, Varsity Lakes, Ashmore and Benowa offer buyers easy access to transport and amenity including shopping centres, university, hospitals – all within easy reach of the beaches the Gold Coast is famous for. On top of that, the lower price point makes this precinct very attractive for investors and owner occupiers.”
The Gold Coast weighted average sale price across the four precincts decreased by $21,752 from the previous quarter, registering $632,171.
“The Coastal Fringe Precinct recorded the lowest weighted average sale price at $473,165, highlighting its affordability and boosting sales in the area,” Ms Campbell said.
In the March 2017 quarter, 113 sales were recorded in the Coastal Fringe Precinct – this is 44 per cent of total sales. As well as a move away from beachfront-located high rise precincts, this quarter saw medium rise projects dominate, with medium rise sales out-performing high rise sales by 25 per cent. 62 per cent of medium rise projects are in the Coastal Fringe Precinct. Only 1,373 apartments remain available for sale at the end of March 2017, which equates to one year’s supply at the current annual sales rate.
“The Gold Coast apartment market is maintaining a good balance of supply and demand,” Ms Campbell said. “In the March 2017 quarter, four new projects were launched and four projects sold out.”
Two-bedroom apartments dominated the market, making up 74 per cent of total sales. The proportion of three-bedroom-plus product dropped to 13 per cent of total sales – equalling one-bedroom product sales.
“The Gold Coast apartment market offers a variety of different products to a broad range of buyers,” Ms Campbell said. “We see buyers spending a modest amount on a new apartment on the Coastal Fringe or over $2 million for premium luxury on the Southern Beaches, as well as everything in between.
“The variety offered will continue to attract buyers to the Gold Coast as a place to work, live and play.”
Q1 2017 snapshot: