New apartment sales in the first three months of 2019 have climbed by 45% from last quarter, despite other markets across the country falling flat, according to property consultant company Urbis.
The Quarterly Apartment Essentials report showed that new apartment activity in the first quarter of 2019 was up by over 70 sales from the December quarter.
New apartments rose above the market downturn with the help of developers that were able to lure in buyers, according to Lynda Campbell, Urbis senior consultant.
“Most of the developers on the Gold Coast are meeting the market,” Campbell said in a statement. “The top-selling projects have been boutique and targeted at owner-occupiers, and that’s what the market is looking for at the moment.”
Realestate.com.au reported that there were 231 new apartment sales generated from January to March—boutique-style developments were the most in-demand.
Two-bedroom, two-bathroom pads accounted for 65% of sales. Meanwhile, 2,800 apartments are under construction on the Glitter Strip, of which 62% are set for completion in 2019.
Campbell said five of the top 10 best-selling projects nationwide are located on the Gold Coast.
“The developers are doing a lot of homework and making sure what they take to the market is what the market is looking for,” she said.
The report also found interstate investors claimed 25% of sales in the new year—down from 42% in the final quarter of 2018.
“Foreign investors claimed almost a quarter, and buyers in the box seat proved to be owner-occupiers who accounted for 43% of sales,” realestate.com.au. said.
The southern beaches precinct, which stretches from Mermaid Beach down to Tweed Heads, stood out with over 60% of sales for the quarter — the highest level logged for the area in the past five years. The stretch only accounted for 25% of sales during the same time last year.
Most of the sales were happening at the southern end because the stock was there, according to Chris Litfin, Knight Frank director and Queensland head of project marketing.
In addition, many developers purchased land between Mermaid Beach and Tweed due to better values these areas offer.
“They can provide a product near the beach at a low price point,” Liftin told realestate.com.au.
