The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
2
print
Print
OtherRalph NicholsonFri 27 May 22

Gold Coast Apartment Boom Eases After Record Year

The Gold Coast’s record run of apartment sales has cooled with numbers for the first three months of the year falling to pre-Covid levels.

A report compiled by property consultancy Urbis shows the Gold Coast recorded 377 new apartment sales in the March quarter, about 38 per cent down on the previous three months and about half that of the same time last year.

The result also falls short of last year’s low of 450 sales for the June quarter.

“Sales have certainly eased off their 2021 highs in the latest quarter but that’s not unexpected considering the high levels achieved last year,” said Urbis director Lynda Campbell.

“But remember last year was exceptional,” Campbell said, pointing to three record quarters.

She said the data continued to highlight ongoing shortages of new apartments, with just 411 units still for sale at the end of March. That’s the lowest number since Urbis began monitoring the new apartment market in 2014. And despite 11 new projects being launched during the quarter.

“Last year was very different,” she said. “There were a lot of owner-occupied apartments, large floor plans on expensive apartments and a lot of interest from interstate buyers. Queensland was seen as a bit of a haven from Covid.”

Based on the current quarterly sales rate, the Gold Coast has just 3.3 months of supply remaining.

“The key statistic this quarter is the drop in the number of apartments for sale to a record low, which shows the supply side is still failing to keep up with demand.”

Most of those 411 apartments unsold at the end of March are in just three areas of the Gold Coast Central precinct—Southport, Surfers Paradise, and Broadbeach.

Campbell said they would be looking closely at four big projects due to launch on the Gold Coast, which would indicate what the remainder of the year might look like.

However, observers remain bullish.
▲ While the city's apartment market has eased, observers remain bullish.

Iris Capital has been given approval for the $800-million Victoria and Albert apartment tower at Broadbeach. Meanwhile, Melbourne-based Gurner Group’s La Pelago mega-project will include four towers across 11,000sq m at Ferny Avenue, Surfers Paradise. The $1.75 billion project will house more than 900 residences and about 200 hotel suites up to 60 levels.

Another Melbourne-based developer, Central Equity, has reportedly begun early sales at Pacific One, a 359-apartment tower, also in Surfers Paradise. And SPG Land has been given approval in the same area for Paradiso Place with 792 apartments.

“These are likely to alleviate the supply problem, although they are very different projects,” Campbell said. “They are all large-scale and resort-style. We’ll be watching these sales closely as the market digests rising interest rates and any new initiatives at the federal level.”

She said construction costs and supply-chain issues meant it was possible not as many projects would make it out of the ground. And volatile weather in NSW and Queensland had put a dampener on construction activity over the first quarter.

“But at the same time there has been record low unemployment and record low supply levels."

However, observers remain bullish. Prior to 2021, the Gold Coast market absorbed an average of 1,100 new apartments a year with a high of 1,600 in 2015 and a low of 800 in 2017. If the March-quarter sales of 377 are repeated throughout the year, 2022 could become the third biggest year for sales behind 2015.

“The dominant buyer profile for Gold Coast apartments remains owner-occupiers looking for larger apartments,” Campbell said. “While supply dropped, the price increased. Almost a third of the sales—about 31 per cent—were at price points above $1 million, which reflects the general increase in apartment values.”

ResidentialAustraliaGold CoastReal EstateSector
AUTHOR
Ralph Nicholson
More articles by this author
ADVERTISEMENT
TOP STORIES
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
Exclusive

Accor Deputy Delivers Verdict on Brisbane Games Hotel Shortfall

Phil Bartsch
6 Min
Qld Budget 2025-26 Brisbane City
Exclusive

Billions Promised, Now Deliver: Industry’s Qld Budget Verdict

Vanessa Croll
6 Min
Medium Density housing in NSW
Exclusive

NSW Budget ‘Groundbreaking’ $1bn Guarantee to Unlock Housing

Leon Della Bosca
7 Min
View All >
Sponsored

Rare Coastal Development Opportunity in Heart of Mooloolaba

Partner Content
Industrial

Cadence Nabs Logistics Portfolio for $170.5m

Taryn Paris
Sydney developer Platino Properties is planning a near 350-unit seniors development on the Northern Beaches as it continues to expand its over 55’s portfolio. The concept application extends the Skyline Place seniors precinct and is for 1 and 3 Skyline Place, Frenchs Forest.
Retirement & Aged Care

Platino Plans Northern Beaches Seniors Expansion

Renee McKeown
The Sydney developer has revealed a six-building scheme for the third stage of its Frenchs Forest seniors project…
LATEST
Development

Rare Coastal Development Opportunity in Heart of Mooloolaba

Partner Content
2 Min
Industrial

Cadence Nabs Logistics Portfolio for $170.5m

Taryn Paris
3 Min
Sydney developer Platino Properties is planning a near 350-unit seniors development on the Northern Beaches as it continues to expand its over 55’s portfolio. The concept application extends the Skyline Place seniors precinct and is for 1 and 3 Skyline Place, Frenchs Forest.
Retirement & Aged Care

Platino Plans Northern Beaches Seniors Expansion

Renee McKeown
2 Min
Charter Hall’s $925m Hyde Park skyscraper
Planning

Charter Hall $925m Sydney Skyscraper Wins City Backing

Vanessa Croll
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/gold-coast-apartment-boom-eases-after-record-year