City Beat July 2023: Gold Coast unit market the strongest in the country
Gold Coast units have continued to show their strength through 2023, according to property data analytics firm CoreLogic's Monthly Hedonic Home Value Index.
Unit values rose 1.5 per cent last month, the highest monthly gain across every capital in the country. The 3.9 per cent rolling quarterly gains are also the strongest in the country, ahead of Sydney (3.5 per cent).
The median unit value is now $672,900, according to CoreLogic, now just -2.8 per cent lower than this time 12 months ago following the national year-long downturn.
CoreLogic's Research Director Tim Lawless says a lack of available supply continues to be the main factor keeping upwards pressure on housing values.
“Through June, the flow of new capital city listings was nearly -10 per cent below the previous five-year average and total inventory levels are more than a quarter below average.
Read more: City Beat June 2023: Gold Coast apartments defy downturn, rebound sharply
"Simultaneously, our June quarter estimate of capital city sales has increased to be 2.1% above the previous five-year average.”
Although housing values continue to record a broad-based upswing, the pace of growth across most capitals eased in June.
“A slowdown in the pace of capital gains could be a reflection of a change in sentiment as interest rate expectations revise higher,” Lawless added.
“Higher interest rates and lower sentiment will likely weigh on the number of active home buyers, helping to rebalance the disconnect between demand and supply.”
What's happening in the off the plan apartment market?
Supply continues to be a contributing factor to the success of off the plan apartment projects on the Gold Coast in June.
Urban Activation Director of Sales and Marketing Matt George says June showed a strong continuation of demand in the Gold Coast property market.
"Demand from lifestyle property purchasers from Brisbane, Melbourne and Sydney has continued well into 2023," George says, adding that investors with a longterm view of using apartments for personal use later in life have made up a strong portion of enquiry.
Urban Activation is marketing Melbourne developer Hirsch & FaigenYVES at Mermaid Beach, which is now 90 per cent sold. The crane is on site, and completion is slated for the end of 2024.
Yves, Mermaid Beach
They're also selling 26 Vista, the sustainable Surfers Paradise tower, for MRCB International. George says they're seen consistent demand from China, Hong Kong and Taiwan due to the project's central location, quality, and scale.
They did $55 million in sales at the project within the first three months of its marketing.
Apartments start from $605,000 in the 51-level tower, which will home the Gold Coast's highest residential swimming pool.
The amenity, on level 51 of the Vista Street building just off the beach in Surfers Paradise, will be reserved for the residents of the three and four-bedroom apartments from level 33 and up.
Dubbed the Alto Private Lounge, the rooftop will feature a sky pool, as well as a private dining space, kitchen, and a bar with cocktail-style seating.
Also forming part of the rooftop is ‘Stratos 168’, which is accessible to all residents. That offers an indoor and outdoor lounge, fire pits, garden beds, and an outdoor workspace.
Level 4 is home to ‘Club Vista’, comprising a large pool and yoga sun deck, as well as a cycle-room and gym offering world class equipment open to all residents.
George believes that amenity rich towers such as 26 Vista also need to offer the convenience and the immediacy typically experienced with inner city living, or hotels.
Knight Frank Associate Director James Elliot says he's seeing strong buyer interest from the Gold Coast to Byron Bay from high-net-worth clientele seeking premium quality new properties.
"They are more considered with their buying approach and very detailed in their investigations and research," Elliott said, adding that while the buyer journey is now a little longer between initial enquiry and making a decision on a property since the COVID-induced boom, the segment of buyers in the $5 million to $20 million range for high-quality off the plan properties is still high.