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The month in review: Gold Coast
By Herron Todd White
May, 2010
Nerang is one of the oldest suburbs on the Gold Coast
and is situated approximately 15km west of Surfers
Paradise on the central Gold Coast. Land was first sold in
1871, with new sub-divisions still under construction and
being proposed today.
Because of the age of Nerang, development is mixed,
with a wide variety of housing ranging from basic fibrous
cement cottages to luxury multi-level acreage properties.
Entry point into Nerang would typically comprise of a
small, semi-modern, 10 to 14 year old, lowset brick and
concrete tile dwelling containing three bedrooms, one
bathroom and single garage on a 400sqm allotment.
This type of home would have a price point of around
$350,000. Alternatively, older style lowset and highset
houses of say 20 to 30 years of age, which are in basic
condition, are also selling for around the $350,000 mark.
Every now and then a house will sell in the low $300,000s
however generally there is a reason for the low sale,
such as mortgage stress, family reasons, house is in poor
condition and so forth.
Better quality homes in new sub-divisions, and only a
few years old are typically selling for around the $500,000
mark and comprise a four bedroom, two bathroom
dwelling with double lock-up garage constructed on a
600 to 750 sqm allotment. The highest residential sale in
Nerang this year was of a good quality, three year old, four
bedroom, two bathroom dwelling with a double lock-up
garage and swimming pool, located in one of the newer
sub-divisions. It sold for $620,000.
Typical land areas in Nerang for residential housing are
also mixed. Land ranges from small 400sqm allotments
to larger, 1500 sqm allotments. The more recent land subdivisions
typically show land areas of 600 to750sqm.
Services in the area are quite good and cater for just about
everyone’s needs. Some of interest include:
• Nerang State School and Nerang State High School.
• Nerang Cinemas.
• Nerang Community Swimming Pool.
• Nerang train station (running to Brisbane).
• Numerous medical facilities.
• Two medium-sized shopping centres.
Nerang is also located on both side of the Pacific Motorway,
with easy road access to Brisbane and southern areas.
We believe Nerang to be a good area for both investors
and owner occupiers due to the varying price points and
the services that are provided. Market conditions for the
area peaked towards the end of 2007, with declining
values through 2008. Local agents in the Nerang area
currently report steady levels of demand, with steady, but slightly slowed levels of rental demand. We believe value
levels will remain relatively stagnant for at least the next
six months, whilst buyers and sellers keep a close eye on
interest rates.
Sovereign Islands
Sovereign Islands is generally considered one of the
premier waterfront addresses on the Gold Coast.
Sovereign Islands began development in the late
1990s and has continued to amaze with cutting edge
architecture and design. Made up of approximately 661
allotments, Sovereign Islands has produced some of the
Gold Coast highest waterfront sales during the past five
years.
Sovereign Islands currently has three general price
brackets for established houses. The first being entry
level from $1.4 million to $1.8 million. These properties
generally comprise either dated or large builders ‘project
homes’ of two- storey, rendered brick construction, often
occupying a narrow water frontage land located in the
older and original stages of the development.
The second price bracket is $2 million to $3 million.
Properties achieving these figures are generally
positioned in the later stages of the development and
comprise new architecturally designed residences with
basements garages, high quality finishes, wide water
frontages and desirable aspects and outlooks.
Out of the 37 house sales on the Island in the past 12
months the median sale price is approximately $2.7
million. The properties that make newspaper and media
headlines on Sovereign Islands are priced at $4.5 millionplus.
These mega mansions are positioned on some of the
Islands prime allotments with dwellings finished to the
highest of building standards and often above the ability
and workmanship of standard builders. These properties
can span over four allotments and stand three storeys
high with roof top terraces, internal passenger lifts and
multiple car basement garages.
The highest sale in the Islands’ history was for $11 million,
in September 2006 for a property known as ‘Baltimore’.
The property is positioned on an East facing canal front
allotment with 56m of waterfrontage and views of the
Broadwater. The dwelling comprises a large, modern,
architecturally designed, air conditioned, part three
storey, rendered brick and metal roof dwelling providing More and more properties of this calibre are being
constructed with a hand full of properties on the market
with asking prices in excess of $8 million. The most
expensive carries a price tag of $20 million and includes
a part three storey, circa 2009, modern design, masonry
block, seven bedroom, nine bathroom plus powder
room, house, with suspended concrete roof, decramastic
tile roof and 20 car basement garage. Areas include:
living (1408sqm), outdoor (137sqm), car (423sqm)
other (248sqm). Ancillary improvements include a
22m tiled in ground pool; glass and aluminium pool
fencing, high quality landscaping, under ground water
tanks, full limestone block boundary fencing; automatic
security gates, gatehouse, 30m pontoon with mooring
pylons with power and water connected and barbecue
pavilion. The dwelling, locally known as ‘The Castle’, has
medieval themes and has been frequently publicised in
newspapers and television. The selling agent has advised
of international interest.
In the wake of ‘Global Financial Crisis’, Sovereign Islands
was hit hard with land values being discounted by up to
40%. Due to the large supply of vacant land, residents and
investors that required urgent sales were forced to take
extreme losses. There are approximately 70 detached
houses and 30 vacant allotments currently on the market,
totalling just over 15% of the property on the Islands.
The past six to eight months has seen an increase in sales
volume for both detached housing and vacant allotments
on Sovereign Islands, indicating a return in confidence
to that sector of the prestige property market. With the
continuing interest rate rises and the high volume of
stock available, it maybe some time until property values
return to the boom prices they were achieving from late
2006 to early 2008.
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