Recent strong sales activity across the Gold Coast’s apartment sector point to a new phase in the apartment cycle and continued strong momentum throughout the year, according to leading development and real estate figures.
Ray White Surfers Paradise Group (RWSP) CEO Andrew Bell and prolific Gold Coast developer George Mastrocostas of Aniko Group have given the latest available data by Urbis a big tick.
The latest Urbis Market Essentials report has revealed apartment sales in the December quarter were the strongest they have been since 2017 with 323 sales.
New apartment sales in 2019 totalled 905, just shy of 1015 sales in 2018.
Reports of this strength confirms internal data from RWSP, which shows the sector is poised for continual growth in 2020.
According to RWSP CEO Andrew Bell, the conditions that have supported new apartment sales over the past two years are on track to continue for at least the next 12 months.
“The Gold Coast naturally saw a peak of activity in 2018 due to the Commonwealth Games, and while 2019 was a little more subdued, with uncertainty surrounding how the federal election would impact the property market, it was a period of consolidation that we believe will pay dividends this year,” Mr Bell said.
“The market is starting to gain momentum again and settle into a strong and comfortable position which we predict will remain throughout the year,” he said.
In a sign that 2020 is off to a strong start, RWSP’s project marketing division, Ray White Projects, revealed it had secured more written expressions of interest and issued more contracts for new projects in December and January than in the preceding 12 months.
“A key aspect of the current market is that it is being driven by domestic buyers, both local and interstate, with no significant contribution from offshore buyers from Asia. Interstate downsizers have also been highly active in recent months, many of whom are searching for owner-occupier-style apartments,” Mr Bell said.
“The Gold Coast has come into its own in terms of being able to sustain the number of new projects coming to the market, balancing that with steady demand from domestic buyers.”
Urbis reports the most popular apartment sales were two bedroom, two bathroom apartments, accounting for 64 per cent of sales in the December quarter.
Urbis revealed nine new projects were launched on the Gold Coast during the December quarter, representing an extra 518 apartments.
A further 14 projects comprising 838 apartments are expected to come onto the market in the first half of the year.
“This is a somewhat conservative supply, which, coupled with strong demand is actually translating into steady price growth for the market,” Mr Bell said.
Strengthening conditions and strong sales are also witnessed in the Gold Coast’s North Shore precinct – an area defined by Urbis as encompassing Hope Island and its surrounds.
The $140 million No. 1 Grant Avenue project in Hope Island, being developed by Aniko Group, is more than 70 per cent sold.
The project was the best-selling on the Gold Coast in the September quarter and one of the top four selling projects in the city throughout the December quarter.
No. 1 Grant Avenue achieved 71 percent of all sales in the December quarter and has fast tracked construction of the development’s second stage.
“The market response to No. 1 Grant Avenue has been tremendous,” said Aniko Group’s managing director George Mastrocostas.
“It proves that demand for quality apartments is holding up well across the board on the Gold Coast and, from our perspective, Grant Avenue is one of the most dynamic projects we have undertaken from a sales perspective.