The latest research from Urbis revealed the Gold Coast new apartment market ended 2016 with an annual sales level of 1,555 sales, the strongest performance recorded since 2007.
With 325 new apartment sales in the December 2016 quarter, and despite a slight downturn from the previous quarter – the Gold Coast apartment market finished the year positively, with increased activity in the sector.
Urbis said the positive activity was expected to continue into 2017.
Only 1,372 apartments remained available for sale at the end of December 2016, which equates to less than one year’s worth of supply.
Urbis Senior Consultant Lynda Campbell said the Gold Coast apartment market is hitting its stride.
“We are seeing confidence in the apartment market, and the level of supply and demand are remaining within reach of each other.”
The weighted average sale price increased by $57,774 in the December 2016 quarter, registering $653,923 – an increase that was felt across every precinct.
“The Southern Beaches precinct recorded the highest increase at $246,358,” Ms Campbell said.
“Premium product influenced this, with the average price of surveyed apartment projects in the precinct ranging from $880,000 to $1.75 million.”
Ms Campbell suspects a potential under-supply in the market with only 46 apartments remaining for sale in the Southern Beaches precinct at the end of the quarter.
The Coastal Fringe precinct recorded the highest level of sales for the second quarter running, making it the fourth quarter in three years that the precinct recorded the highest sales rate.
The Coastal Fringe precinct recorded a total of 165 sales during the December quarter 2016, and 557 throughout 2016 – making up 36 per cent of annual sales. In the December quarter 2016, the Coastal Fringe precinct recorded the most affordable weighted average sale price at $522,121.
Two-bedroom apartments dominated the market, however the proportion of two-bedroom apartment sales declined in the quarter to 69 per cent – down from 77 per cent in the previous quarter.
The proportion of three-bedroom product lifted to 22 per cent of total sales – up from 12 per cent in the previous quarter.
“The Gold Coast has always had a three-bedroom apartment market, more so than other areas,” Ms Campbell said.
“The growing down-sizer market is seeing this sector strengthen, and this trend is now beginning to emerge in the Brisbane new apartment market.
“As confidence continues in the Gold Coast new apartment market, 2017 will be an exciting year.”