- 377 new apartment sales were recorded during March 2021 - 742 were recorded same time last year
- Supply is expected to increase due to several projects launching in the current quarter
- Owner occupiers seeking large apartments still the dominant player
Although the Gold Coast apartment boom has come off the highs recorded in 2021, solid sales during the first quarter of this year have revealed that sales momentum is continuing as supply hits a record low.
Data compiled by Ubris has revealed that the Gold Coast recorded 377 new apartment sales during the March quarter – well below the high of 742 recorded during the same time last year.
Additionally, the latest result is below last year’s quarterly low of 450, which was recorded during the June 2021 quarter.
The data reaffirms the ongoing shortage of new apartments in the area, with just 411 apartments for sale as of the end of March.
This is the lowest such figure since Urbis began collating this data series in 2014. This is also despite 11 new projects being launched during the quarter.
Based on these figures, the Gold Coast has just 3.3 months of supply left, although it is likely this figure will increase once several large-scale projects are released soon.
Urbis director Lynda Campbell said while sales have eased, it is not unexpected given the high levels in 2021.
“The key statistic this quarter is the drop in the number of apartments for sale to a record low, which shows the supply side is still failing to keep up with demand,” said Ms Campbell.
“It’s unclear whether the supply shortage had any bearing on overall sales for the March quarter as the urgency to buy that we saw in 2021 is showing signs of easing.
“However, there are several large projects coming to the market and we will be watching these sales closely as the market digests rising interest rates and any new initiatives at the federal level.
Lynda Campbell, Urbis director
“The obvious concerns surrounding construction costs and supply chain issues means that we do not expect to see as many projects make it out of the ground as in previous years while volatility and viability are managed.”
Gold Coast – Stock for Sale
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SQM Research also reiterates the decline in stock availability across the region, although there has been a slight uptick in recent months.
Owner occupiers the dominant players
Before 2021, the Gold Coast market would typically absorb 1,100 new apartments annually. A high of 1,600 was recorded in 2015 with a low in 2017. If the latest figures were repeated for the remainder of the year, 2022 could be the third-largest year for sales since 2015.
“The dominant buyer profile for Gold Coast apartments remains owner occupiers looking for larger apartments,” said Ms Campbell.
“Almost a third of the sales – about 31 per cent – were at price points above $1 million, which reflects the general increase in apartment values.”
The Gold Coast Central precinct, which includes Southport, Surfers Paradise and Broadbeach, recorded 243 sales during the March quarter, the most of any area. This was followed by the North Shore (90), which includes Hope Island, home to all 90 sales.
The Southern Beach precinct (from Mermaid Beach to Coolangatta) fell to 27 sales, the lowest since 2017. However, only 67 apartments remained for sale in this precinct as of the end of March.
The Coastal Fringe precinct, which stretches from Robina to Benoway, has low supply levels too with just 17 apartments for sale at the end of March.