Chris Litfin of Knight Frank and James Drake of Queensland Sotheby’s International Realty discuss the market on the Gold Coast for apartments, and luxury duplex and detached homes.
The Gold Coast apartment market is abandoning its ‘boom and bust’ reputation and becoming more solid and steady, according to Knight Frank.
Chris Litfin, Knight Frank Director and Head of Project Marketing in Queensland, said there had been changes in the market in the last few years, including a move towards smaller developments adding less supply and buyers taking longer to make decisions, and this, along with growing long-term demand, had led to more stability.
“There are a number of apartment developments on the Gold Coast at the moment, with cranes in the sky, and when people see that they tend to think the Gold Coast is booming, but it’s now a different
market,” he said.
“Previous property cycles were generally centred around major developments with many hundreds of apartments in single buildings – as an example, Soul had around 300, Oracle had around 500 and Circle on Cavill delivered over 600.
“But generally the buildings being built at the moment are a lot smaller than they used to be. Some have a few hundred apartments, but most are around 100 or less.
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“This means there won’t be a huge increase in supply, and with the steady increase in population on the Gold Coast and the ever-increasing downsizer demand from retirees, the result is a very stable
property environment," Mr Litfin continued.
“In 1960 the Gold Coast had a population of 50,000 and now it’s more than 600,000. We’ve got enough people here now, and enough industry, including education, construction and health, to be a
strong and stable city.
“The older population is growing significantly, which is only going to add to the demand for apartments. Australian Bureau of Statistics data from the 2016 Census shows the over-65 demographic made up around 16 per cent of the total population, but by 2036 the population is expected to double, accounting for over 20 per cent of the total.”
Gold Coast developers in new apartment buildings are creating stock designed for these buyers, paying particular attention to the public amenity near the sites, and also addressing issues within apartments such as storage and room sizes.
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The latest Knight Frank Australian Residential Development Review 2018 also found apartment stock is being built to cater more for owner-occupiers, with a move towards more bedrooms. It found two bedroom apartments have been favoured in developments built from 2014 to 2017, making up 43 per cent of total stock, followed by one bedroom apartments (39 per cent), three bedroom apartments (15 per cent) and studios (3 per cent).
But it further found that of the buildings under construction there is a trend towards less one bed apartments being built – making up only 25 per cent of stock - in favour of more two beds (49 per cent), three beds (17 per cent) and studios (4 per cent). Four bedroom apartments are expected to grow to a share of 4 per cent of all new completions in 2018-21.
While the Gold Coast apartment market is seeing strong activity from downsizers, Mr Litfin said it was only a matter of time before interstate investors started becoming more active.
20a/b Conifer Crescent, Broadbeach Waters for sale by James Drake of Queensland Sotheby’s International Realty, as seen on Luxury List
James Drake, sales executive at Queensland Sotheby’s International Realty told WILLIAMS MEDIA he is seeing an influx of Sydney buyers that want to invest in high end luxury duplex and detached homes in the waterfront suburbs.
They are especially appealing for downsizers and executives who don’t want to live in an apartment, but want a low maintenance, luxurious property.
“These homes still hold value in the luxury market while capturing the boutique style.
“Many are three levels with skyline views from the top floor, they have their own driveways and they are on the water, yet sometimes half the price of larger homes."
Mr Drake is currently selling two brand new, detached, three level houses, which are currently being built and completed in early February, 2019.
“The majority of enquiries about the homes have come from Sydney - many are people who don’t want to move for good but have a getaway on the Gold Coast.
“The local market will also catch onto the detached housing trend, it’s just a matter of time.”
Click here to view the Knight Frank Australian Residential Development Review 2018
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