Gold Coast May 2018

The month in review: Gold Coast

By Herron Todd White
May 2018

The prestige market sector was impacted heavily by the GFC in 2008 and only started seeing signs of improvement in late 2014 and early 2015, improving rapidly during 2016 and throughout 2017 with a number of large prominent sales evident at strong prices (a number of which were in the range of $9 million to $25 million) with a staggering $16.5 million spent in May 2017 for a large, luxury dwelling on Virginia Drive at Hope Island on the northern Gold Coast. The most prestigious suburbs on the Gold Coast for housing are Hope Island, Paradise Point, Mermaid Beach, Main Beach, Surfers Paradise and Broadbeach Waters.

The majority of the prestige townhouses or duplexes are located at Hope Island and have price points starting at around $2 million. The vast majority of prestige units are located at Main Beach, Surfers Paradise and Broadbeach with a smaller amount found at Burleigh Heads and Coolangatta.

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More recently, we have noticed a slowing of market activity with local real estate agents reporting fewer sales, increased stock levels in some market segments and reduced buyer demand with fewer enquiries from overseas buyers over the past six months after a sustained run of strong transactions, particularly to Asian buyers. This is, however, highly segmented and the level of improvement is very property and price specific and properties that are selling are generally still achieving strong price levels.

The more significant improvement has been evident for established, near new, luxury housing in the prime waterfront and coastal suburbs particularly Isle of Capri at Surfers Paradise which recorded an $8.8 million dollar sale of 31 The Corso in February 2018.

The market segment for luxury apartments on the Gold Coast upward of $3 million saw improved buyer demand over the past 12 to 18 months, however remains very thinly traded and sales are few and far between. There have only been seven sales to date during 2018 with a standout sale being the Chevron Renaissance penthouse which sold in January 2018 for $9.5 million to a local buyer. The two-level penthouse, situated over the 39th and 40th floors was previously used as an office space for the developer and after the company folded, it was sold off to HomeCorp CEO, Ron Bakir for $1.2 million, who together with Sunland Group chairman Soheil Abedian took the floor space back to its shell and spent $7 million transforming it into a luxury apartment and importing Italian furniture.

Gold Coast property

Other standout sales of luxury apartments include the $5.3 million dollar sale of the Xanadu North penthouse sold by Robert Graham at Ray White. This two level penthouse unit is situated over the 23rd and 24th floors providing 4-bedroom, 5-bathroom accommodation with four basement car spaces, a private indoor plunge pool and panoramic 360 degree views incorporating distant hinterland views to the west, Broadwater and Southport skyline views to the north-west, coastal views up to the Spit to the north and unobstructed beach and ocean views to the east and north-east.

Robert also sold the three level, XXV Breaker Street Residences penthouse in late February for $3.05 million which comprises 3-bedrooms, 5-bathrooms, a rooftop terrace featuring a private plunge pool and four basement car spaces situated on the 23rd, 24th and 25th floors.

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Buyers of prestige acreage property can be very discerning and hence, not all properties receive similar levels of demand or achieve similar sale prices. Consequently, sale prices (and selling periods) in this market segment can be heavily influenced by individual buyer preferences and specific property attributes that will appeal differently to individual buyers. These attributes include, but are not limited to, land size, topography, views, size and quality of improvements, level and quality of ancillary improvements, vegetation, creek or river frontage and dual living potential.

Interestingly the Gold Coast’s rural residential market up to one hectare has had no sales over $3 million from 2016 to date.

Further afield, there have been very few recent sales for larger sized properties over $3 million and have been for more rural or rural lifestyle properties in excess of five hectares being heavily improved with equine facilities.

One standout sale in particular was the 9.55 hectare property at Riverstone Crossing in Maudsland which provided a 4-bedroom, 4-bathroom dwelling constructed circa 2007 on a low lying and cleared river and creek front allotment.

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Another well located, rural residential property is currently under contract at 173 Stewart Road in Clagiraba.

The property is improved with two dwellings of good quality as well as a cottage. The 14.48 hectare parcel provides predominantly low lying cleared land with frontage to the Coomera River.

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We note that bank lending policies have tightened and for larger rural holdings, require substantial deposits which in turn only enables potential purchasers with stronger financial standing to complete the sale. This has resulted in limited transactional evidence from a small pool of buyers over the past 18 months in the Gold Coast and Scenic Rim localities.

From 2017 to date there have been very few larger sized property transactions and all have been within the Scenic Rim locality.

DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.