APARTMENT BUYERS AT LOW END STARVED FOR CHOICE

Written on the 6 November 2014 by Nick Nichols

APARTMENT BUYERS AT LOW END STARVED FOR CHOICE

FIRST home buyers looking to enter the new apartment market are being starved for choice on the Gold Coast, according to Urbis Research.

The latest Gold Coast Apartment Report compiled by the analyst says only two projects cater to the sub-$400,000 market - Sage in Merrimac and Azzura Greens in Hope Island.

The analysis is based on a weighted average of sales prices within each project, with Sage recording an average price of $375,000, the same as Howard Group’s Southport project Sphere which has sold out.

The next cheapest is Majeed Tabrizi’s Tweed Ultima North development at Tweed Heads where prices average $408,333.

Azzura Greens, a resort-style development, is understood to have sold out of remaining apartments since the Urbis report was published leaving Sage as the only sub-$400,000 apartment project on the market.

While a raft of new developments are proposed for the Gold Coast’s coastal fringe market, little detail is available on pricing of these products.

New coastal projects, including Ho Bee Investments Rhapsody in Surfers Paradise and Morris Property group’s Synergy at Broadbeach, have average prices of $521,429 and $537,500 respectively. Both are attracting strong interstate investor interest.

Urbis says these projects have sold 14 and 16 apartments respectively in the second quarter of 2014, while Sage has sold 12.

These three projects were among the biggest movers in the Gold Coast apartment market in the quarter, sitting behind the 28 sales recorded for the upmarket Soul project where apartments average $1.35 million each.

Sage developer Minamarc says its project has garnered strong interest from Sydney buyers who are suffering from price fatigue in the NSW capital.

Sales manager Elena Marchetti says the project has been aided by new RP Data Research which shows that apartments in the Merrimac area have average vacancy rates of 1.03 per cent and average yields of 6.1 per cent.

"The majority of the apartments we have sold to date have been taken up by interstate investors and local first home buyers," she says.

RP Data also lists Merrimac as the most rewarding Gold Coast apartment market of the past year, with average prices jumping 25 per cent to $380,000.

Two-bedroom apartments at Sage are priced from $349,000.

Sydney buyer Nicholas Gee, who bought into the sage project, says he moved to the Gold Coast after struggling with the Sydney market where equivalent products are 50 per cent higher.

"In Sydney property prices are so high, that in many cases first time buyers like me would struggle to qualify even with the $15,000 government grant,” he says.


Author: Nick Nichols

Latest News

2017 BRISBANE TOP COMPANIES REVEALED

WHILE Queensland is regarded as an economy in transition with the winding down of the mining boom, the 2017 top 50...

2017 BRISBANE TOP COMPANIES 1-10

FROM insurance and banking to travel, gambling, retail, property and pizza, these "heavyweights" have ha...

2017 BRISBANE TOP COMPANIES 11-20

RETAIL, property, an airline, cars, real estate, software services, energy, agriculture, veterinary services bathr...

2017 BRISBANE TOP COMPANIES 21-30

JEWELLERS Michael Hill International listed in 2016 with a half-billion dollar market capitalisation and a new CEO...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter