Gold Coast Property Market Booms: New Apartment Prices Jump 45% in Three Months

Victoria & Albert Broadbeach
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The Gold Coast property market is surging in 2024, and the average price for a new apartment on the glitter strip has reached a historic milestone, surpassing $1.6 million for the first time.

This monumental leap comes as owner-occupiers flood the market, eager to secure properties amidst a dwindling supply. According to the latest research conducted by Colliers, the December quarter witnessed a remarkable uptick in prices, setting a new benchmark in the region’s property landscape.

Despite a slight downturn in the number of new apartment sales, which marked the second lowest quarter in the past three years, the average price soared by 14.5 per cent compared to the previous record set in the September quarter of 2022. This remarkable increase represents a staggering 45 per cent jump from the average price recorded just three months prior, standing at $1.134 million at the close of September last year.

Colliers’ comprehensive Gold Coast Residential Market Report reveals that a total of 236 new apartments were sold in the December quarter, a modest figure in comparison to previous quarters. This marks a marginal increase from the June quarter’s 211 sales but falls significantly short of the 470 sales registered in the September quarter.

Throughout the entirety of 2023, a total of 1,205 new apartments were sold, reflecting a 13 per cent decrease from the previous year’s figure of 1,389 sales. This stark decline is indicative of a broader trend, with sales in 2023 representing less than half of the peak witnessed in 2021, during the height of the national construction boom.

Gold Coast Property Market The Rochesters in Broadbeach's Health and Wellness Zone
^The Rochester in Broadbeach’s Health and Wellness Zone Render

“The latest sales numbers reflect the ongoing challenges of meeting demand for new apartments on the Gold Coast,” said David Higgins, the Gold Coast Director Residential at Colliers. 

“We are really seeing Residential projects struggling now out of the ground, due to the massive increase in construction costs, making many projects just not feasible in current cycle.

“Sales volumes are lower while average prices have spiked higher as supply and variety of stock remains constrained. It’s causing a massive fluctuation of pricing in the market.

“The pricing is also reflected in a resurgence of owner-occupiers who accounted for 55 per cent of the sales over the quarter.”

Key precincts such as Broadbeach and Surfers Paradise emerged as dominant forces in both sales and supply over the course of 2023. These prime central suburbs accounted for approximately 70 per cent of total sales, underscoring their significance within the Gold Coast property market. The Gold Coast Central precinct, encompassing areas from Southport-Labrador to Burleigh Heads, remained a focal point for development activity, with 20 out of 30 apartment projects available for sale situated within its bounds.

Gold Coast Property Market Elements Budds Beach McNab External Sunset Render
^McNab’s Elements Budds Beach is Highlighting the Gold Coast’s Surge (Image: McNab)

Despite ongoing development efforts, only 1,489 apartments remain available for sale from a total of 4,471 units that have been introduced to the market. Looking ahead, Colliers predicts the completion of approximately 2,850 apartments in calendar year 2024. However, this forecast offers little reprieve in terms of supply constraints, with demand continuing to outstrip availability.

Furthermore, Colliers’ research indicates that low vacancy rates across the Gold Coast have exerted upward pressure on median weekly apartment rental rates. Over the course of the year, rental rates surged by 10 per cent, climbing from $682 to $750 per week. This significant increase underscores the persistent demand for residential properties in the region, further intensifying market conditions.

Colliers’ findings unveil a striking trend: the Gold Coast’s tight vacancy rates have played a pivotal role in propelling median weekly apartment rental rates upwards by a notable 10 per cent. Over the course of the year, these rates surged from $682 to a robust $750 per week, reflecting the significant impact of supply-demand dynamics on the region’s rental market.

“The bulk of these apartments have already been presold over the past few years, so this will not help deliver additional supply,” said Mr Higgins.

“Increasing rental yields reflect the substantial growth of the investment market across the Gold Coast new apartment market,” said Mr Higgins.

“The apartment market continues to be supported by local and interstate investors who are taking advantage of the strong yields.”

As the Gold Coast property market landscape evolves amidst unprecedented demand and supply dynamics, stakeholders brace themselves for continued fluctuations in prices and rental rates. With challenges and opportunities abound, the resilience of the market remains a testament to its enduring appeal and allure.

Note: The information presented in this article is for general informational purposes only and should not be relied upon as legal, financial, or professional advice. While we make every effort to fact-check and verify the information presented, we cannot guarantee its accuracy or completeness. Readers are encouraged to independently verify any information they find on our website and to consult with relevant professionals before making any decisions based on the information presented. The Australian Development Review does not own the rights to the information included within this article, and furthermore, there is no infringement intended from the included text and images within.

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