City Beat October 2023: Southern boom continues in Gold Coast off the plan apartment market
The Gold Coast unit market continues to post impressive month-on-month growth.
Another 1.6 per cent value gain in the unit market across October marked the sixth consecutive month of plus one per cent growth, CoreLogic's monthly Home Value Index found.
The median unit value on the Gold Coast is now $717,000, up 3.9 per cent on the rolling quarter and 8.8 per cent over 2023.
Comparing it to the capital city markets, the median is just over $100,000 less than the Sydney unit median and over $100,000 more than the next most expensive capital, Melbourne.
Despite many suggesting the traditionally cyclical Gold Coast market would come crashing down when people started heading back into the office and not have the ability to work remotely, the market has bucked opinion and has been one of the best performing markets in the whole country this year.
Read more: City Beat September 2023: Gold Coast unit values pass $700k after continued 2023 growth
What's happening in the Gold Coast off the plan market?
The COVID-19 pandemic lit a fire under the Gold Coast property market, particularly in the off the plan apartment space.
Those who bought anywhere between 2020 and 2021 are starting to see their projects complete.
Despite interest rates rising significantly over the last 18 months, the overwhelming majority of buyers are still settling and are just having to accept an interest rate repayment they never thought would be this high when they purchased. That's because for the last two to three years, prices have skyrocketed. Most buyers are getting their valuations coming back for their completed apartments at 30 per cent more than what they paid.
And what's more, prices haven't come down like the rest of the country. The Gold Coast has proven to be one of the most resilient markets in Australia, and the tight supply v high demand has been the contributing factor.
An interesting insight is that southern demand has continued well into 2023. Initially the southern boom, whether it was for migration purposes or an investment, started when southeners wanted to escape both the cold and the rolling lockdowns for the beach, with the ability to work from anywhere in the country at an all time high.
Now that's over, the expectation was southern interest would taper. But that's not what local agents have found.
Pezet Matheson Director Todd Matheson says southeners are still making up a large portion of both enquiry and purchases.
"Those buyers from the southern states aren't just investors looking to take advantage of the Gold Coast's tight rental yields, they're buying off the plan as a future home," Matheson says.
Southern city dwellers, as well as downsizing locals and those from Brisbane who are looking ahead to retirement, have dominated the sale of the Signature Residences at Lagoon Main Beach, the under construction Main Beach apartment development by Drew Group.
Pezet Matheson secured $43 million worth of sales in the last six weeks at Lagoon Main Beach, the majority of whom were new buyers to the Gold Coast.
"There's been a large cohort of buyers who have come in and transacted quickly in the last month and a half," Matheson says, adding that the status of the project, and the fact it's under construction by one of the biggest and best builders in the country in Hutchisons, goes a long way in the current market.
The $390 million project, on a 4,000 sqm plus site, an amalgamation not seen since the 1980s, comprises two towers of 259 apartments on the sought-after Cronin Avenue.
The two towers are called Sunrise and Sunset, each taking in either views of the Pacific Ocean or the hinterland.
Lagoon Main Beach comes comes with a high-end range of amenities designed to compliment the coastal way of life. The name Lagoon stems from the lagoon-style pool oasis, with private cabanas and a heated spa, which sits between the two towers,. There's also indoor and outdoor lounges, a fitness centre, yoga deck, a business hub, storage for surfboards.
Total Property Group are also seeing significant demand from southeners at the luxury end of the market they market in. They're marketing Royale, Jewel and Escape, and have recently launched Burly Residences, the North Burleigh apartment development by David Devine's DD Living.
Total Property Group Managing Director Adrian Parsons says however that recently the most robust enquiry at the top end has come from the local Gold Coast and Brisbane markets.
"At this point it’s probably the strongest demographic we see," Parsons says.
They've had a strong resposne to the launch of Burly Residences, the Koichi Takada-designed apartment development with interiors by Mim Design.
"We knew the market response would be strong having sold out developments in Burleigh previously," Parsons said, adding however that North Burleigh is a little different when being compared to Burleigh Heads.
"It’s quieter and suits the owner-occupier or quiet holiday maker, footsteps from the ocean. Despite its more peaceful outlook, Burly Residences is also just a short stroll from the amenity at nearby Miami and Nobby Beach, presenting the best of both worlds."
Read more: DD Living reveal luxury Burly Residences development
Parsons says buyers have been attracted to the "playground of six-star amenities", which have a real focus on R&R.
Residents of Burly Residences will have access to two floors of resort amenities, including resort-style pools set amid tropical gardens, a pool deck, and a luxury beach club.
There's also wellness facilities in the form of a gym, yoga and Pilates lounge, Peloton room, steam room and a sauna.