The month in review: Gold Coast
By Herron Todd White
Tweed Coast and Southern Gold Coast
There are a number of current residential land estates available for buyers in this area including Miramar and Seaside estates at Casuarina/Kingscliff, Seabreeze and Black Rocks at Pottsville, Palm Beach Heights at Elanora and The Observatory, Kingsmore and Varsity Heights estates at Reedy Creek.
Each estate offers a different style of product and prices have strengthened in each of the estates over the past 18 months. Agents who market properties in the estates now have a shortage of supply and increased demand for the land.
For example, there were a number of sales of vacant allotments (non beachfront) in Casuarina in 2012 and 2013 in the early to mid $200,000s, however the reduced stock available (significant construction at present) and increased demand have seen prices rise towards the $400,000 mark (some selling above).
A sale of note is 35 Daybreak Boulevard at Casuarina which is a beachfront parcel of 945 square metres. It was sold from the developers (Villa World) in January 2014 for $625,000 and re-sold in November 2014 for $775,000, a price hike of $150,000 in 11 months (24% increase within a year)!
On the southern Gold Coast, there is a new developing residential estate at Tallebudgera known as Hidden Valley which is relatively small (only 25 lots of 600 square metres), however, this is the first A type subdivision in many years as the majority of surrounding properties are on allotments greater than 2,000 square metres. Lots are selling quickly in the estate and the majority of buyers are from the local area.
In regard to infill land markets in the southern Gold Coast patch, there is a limited number of opportunities remaining and the only option is to head west.
Central/Western Gold Coast
Most of the central and western areas of the Gold Coast are established areas with very few sites available. The biggest new estate in this area is the Gilston Green estate.
Prices there two years ago were stable at around $200,000 up to $230,000 for local buyers. Non-local investors were paying $245,000 plus for the land portion of a house and land package.
Since late last year the market has strengthened with locals competing with non-local investors and prices now start at around $255,000.
A new residential precinct within the Royal Pines Golf Course Estate at Benowa has recently commenced marketing, offering single residential and duplex sites. Our office has so far valued only one duplex site of 588 square metres under contract to a Chinese buyer for $540,000 which was not supported. This site backs onto a new supermarket currently in the initial stages of construction with the earthworks started. Previously duplex block sales were achieving around $520,000 for 800 square metres in a superior position within the estate.
Northern Gold Coast
Up in Pacific Pines we are seeing new estates selling house and land packages to mainly foreign investors. The land is selling for between $225,000 and $235,000 which is at local market levels. We note that construction costs for the improvements have been analysed out after making allowances for garaging, patios and ground improvements to over $1,600 per square metre of living area for a single level brick dwelling which is excessive and should be around $1,100 per square metre.
Heading further north to Pimpama and two of the major estates are Meadows and Gainsborough Greens. Sales activity has skyrocketed over the past six months in these estates as market conditions continue to improve and as infrastructure in the area is also improved.
Mid last year land in these estates was selling at around the $200,000 mark for a 450 square metre allotment however we have seen an increase in prices of between 5% and 10% over the past 12 months.
Buyers in the area are a mixture of investors and owner occupiers however we are seeing mainly owner occupiers buying up in the Gainsborough Greens estate.
Residential land on the Gold Coast is one of the better performing sectors of our market. Sales activity has improved and value levels have also risen. Record low interest rates and the return of southern migration has only helped this market segment and hopefully it continues just as strongly through 2015.