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19-05-2013, 12:22 PM
Sales of Gold Coast units on the rise
Matthew Cranston
454 words
14 May 2013
The Australian Financial Review
AFNR
English
Copyright 2013. Fairfax Media Management Pty Limited.
The Gold Coast is starting to produce strong new apartment sales, with volumes in the March quarter now at the highest level in three years.
Just over 200 new apartments were sold – the fifth consecutive quarter to record an increase in the volume of sales, according to Colliers International's latest apartment report.
"A total of 546 new apartment sales were reported during 2012. With 202 sales for the first quarter, 2013 is on track to show an improved sales rate on the previous year," Colliers' Lynda Campbell said.
Colliers reports that the Oracle Tower II in Broadbeach was the strongest performing high-rise project across the Gold Coast with a total of 25 sales for the quarter, followed by the Hilton Orchid tower in Surfers Paradise with 23 sales.
Gold Coast developer Morris Property Group has just launched Synergy, a 137-apartment project at Broadbeach. The project has sold 35 apartments to date this year. Managing director Barry Morris said there had been a steady flow of sales.
"The market has made its correction and it is starting to rebuild. We see it on a weekly basis," Mr Morris said. "The market has corrected to a price point where people see value.
"A few years ago it was too expensive to live anywhere near the beach, now you can get an apartment for $450,000 just 300 metres from the beach."
The number of new apartments on the market is sitting at just over 1000, well down on the 2007 peak of 2500.
Colliers estimates that at the current sales rate, the supply of new apartments could be taken up within 16 months.
One of the key reasons is that the number of new apartment projects being marketed across the Gold Coast has declined. There are now 36 projects, which is the lowest level in 11 years. Of those, only eight have more than 50 apartments for sale. The remaining 28 projects have stock levels of fewer than 50 apartments and 15 of these have stock levels in single-digit figures.
However, while there is a decline in the levels of existing new stock there is a large amount of stock with approval ready to come onto the market once demand picks up.
Colliers notes that the Gold Coast's Southport has about 2900 apartments in the planning stages, with about 1600 of these having development approval.
"Based on the quarterly rate of sales within Southport and Labrador, there is 4.6 years' supply of new apartments," Ms Campbell said.
Southport Central, an existing project which has been in receivership, has dominated sales in the area for the past seven consecutive quarters.
Fairfax Media Management Pty Limited
Document AFNR000020130513e95e0003w
Matthew Cranston
454 words
14 May 2013
The Australian Financial Review
AFNR
English
Copyright 2013. Fairfax Media Management Pty Limited.
The Gold Coast is starting to produce strong new apartment sales, with volumes in the March quarter now at the highest level in three years.
Just over 200 new apartments were sold – the fifth consecutive quarter to record an increase in the volume of sales, according to Colliers International's latest apartment report.
"A total of 546 new apartment sales were reported during 2012. With 202 sales for the first quarter, 2013 is on track to show an improved sales rate on the previous year," Colliers' Lynda Campbell said.
Colliers reports that the Oracle Tower II in Broadbeach was the strongest performing high-rise project across the Gold Coast with a total of 25 sales for the quarter, followed by the Hilton Orchid tower in Surfers Paradise with 23 sales.
Gold Coast developer Morris Property Group has just launched Synergy, a 137-apartment project at Broadbeach. The project has sold 35 apartments to date this year. Managing director Barry Morris said there had been a steady flow of sales.
"The market has made its correction and it is starting to rebuild. We see it on a weekly basis," Mr Morris said. "The market has corrected to a price point where people see value.
"A few years ago it was too expensive to live anywhere near the beach, now you can get an apartment for $450,000 just 300 metres from the beach."
The number of new apartments on the market is sitting at just over 1000, well down on the 2007 peak of 2500.
Colliers estimates that at the current sales rate, the supply of new apartments could be taken up within 16 months.
One of the key reasons is that the number of new apartment projects being marketed across the Gold Coast has declined. There are now 36 projects, which is the lowest level in 11 years. Of those, only eight have more than 50 apartments for sale. The remaining 28 projects have stock levels of fewer than 50 apartments and 15 of these have stock levels in single-digit figures.
However, while there is a decline in the levels of existing new stock there is a large amount of stock with approval ready to come onto the market once demand picks up.
Colliers notes that the Gold Coast's Southport has about 2900 apartments in the planning stages, with about 1600 of these having development approval.
"Based on the quarterly rate of sales within Southport and Labrador, there is 4.6 years' supply of new apartments," Ms Campbell said.
Southport Central, an existing project which has been in receivership, has dominated sales in the area for the past seven consecutive quarters.
Fairfax Media Management Pty Limited
Document AFNR000020130513e95e0003w