Gold Coast apartment prices hit a record high of $1.6m

WORDS: Ocean Road Magazine Editorial Staff PHOTOGRAPHY Supplied

Colliers research shows supply shortages drive average price up 45% in three months.

GOLD COAST, 20 March 2024 – The average price for a new Gold Coast apartment has topped $1.6 million for the first time as owner-occupiers swamped the market in the December quarter to snap up dwindling supply, according to the latest research by Colliers.

The number of new apartment sales in the three months to the end of December may be the second lowest of any quarter in the past three years, but the average price is 14.5 per cent higher than the previous record of $1.44 million in the September quarter of 2022 and 45 per cent up quarter on quarter from the
$1.134 million average at the end of September last year.

Colliers’ latest Gold Coast Residential Market Report has revealed that just 236 new apartments were sold in the December quarter, just ahead of 211 sales in the June quarter and just over half the 470 sales recorded in the September quarter.

Total sales of 1,205 new apartments for 2023 were down 13 per cent on the 1,389 sales recorded in 2022, and less than half the 2,492 apartments sold in 2021 at the peak of the national construction boom.

“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.”

Broadbeach and Surfers Paradise dominated the market in both sales and supply over the 2023 calendar year, with the Gold Coast’s prime central suburbs accounting for about 70 per cent of total sales.

The Gold Coast Central precinct, which includes Southport-Labrador and stretched south to Burleigh Heads, remained the hotspot for development activity during the quarter with 20 of the 30 apartment projects available for sale located there.

There are just 1,489 apartments in total remaining for sale from these projects, out of a total of 4,471 that have been put to the market.

While Colliers forecasts that about 2,850 apartments will be completed on the Gold Coast in calendar 2024, this won’t do anything to ease supply constraints.

“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.

Colliers research also shows that low vacancy rates across the Gold Coast have helped drive median weekly apartment rental rates by 10 per cent over the year from $682 to $750 a week.

“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.”