Boost for high-rise sales
THE Gold Coast apartment market is showing signs of recovery, with high-rise sales increasing 30 per cent quarter-on-quarter, says Colliers International.
The latest Colliers International Gold Coast Apartment Research & Forecast Report shows the number of new apartments for sale sits at 1227 -- the lowest level recorded in the region since early 2004.
Colliers International residential project marketing director, Tony Holland, said it was encouraging several sales were transacted at prices of more than $1.5 million this quarter.
"Good quality apartments in prime locations that are priced to the market continue to attract buyers," he said. "This can be seen with 23 per cent of all available apartments in the southern
beachside precinct from Coolangatta to Palm Beach, and 12 per cent in the Southport/Labrador (precinct) selling during the current quarter."
Of the 98 sales reported in the September quarter, about 65 per cent, or 62 sales, were transacted in high-rise developments.
Based on the current sales rate, there is 31.9 months (2.6 years) of high rise apartment supply or, in raw numbers, 660 for sale across the Gold and Tweed coasts.
Colliers International Gold Coast research manager, Lynda Campbell, said during the past few years the reports had shown a declining number of new apartment projects marketed -- from a high of 87 projects midway through 2007 to 52 at the end of September.
"Availability will continue to fall with no new stock scheduled in the short term," she said. "Although Australia has been relatively insulated from global financial issues, the volatility of other markets has had an effect with consumer confidence.
"The infrastructure that will be needed to host the 2018 Commonwealth Games will boost the construction industry along with providing an overall confidence boost."
Ms Campbell said if the sales rate lifted to 150 a quarter, current stock would be exhausted within two years. If the rate lifted to 200 a quarter, the stock would be exhausted in 18 months.
"It is many years since the Gold Coast has witnessed such an absence of crane activity, particularly in the high-rise sector," Mr Holland said. "Currently there are only two rise projects underway, Eclipse at Broadbeach and Soul in Surfers Paradise. Both of which will be completed in 2012."
Sales volume in the medium-rise sector remained static during the September quarter with 33 sales. Based on this, the medium rise sector will take about 34 months to absorb this stock.
Mr Holland said some of the highest prices for the quarter were achieved in the medium rise sector between $1.5 and $2.95 million.
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