Urbis report reveals sales momentum is soaring across the Gold Coast

Recent strong sales activity acrossthe Gold Coast’s apartment sector point to a new phase in the apartment cycleand continued strong momentum throughout the year, according to leadingdevelopment and real estate figures.

Ray White Surfers Paradise Group (RWSP)CEO Andrew Bell and prolific Gold Coast developer George Mastrocostas of AnikoGroup have given the latest available data by Urbis a big tick.

The latest Urbis Market Essentialsreport has revealed apartment sales in the December quarter were the strongest theyhave been since 2017 with 323 sales.

New apartment sales in 2019 totalled905, just shy of 1015 sales in 2018.

Reports of this strength confirmsinternal data from RWSP, which shows the sector is poised for continual growthin 2020.

According to RWSP CEO Andrew Bell,the conditions that have supported new apartment sales over the past two years areon track to continue for at least the next 12 months.

“The Gold Coast naturally saw a peak of activity in 2018due to the Commonwealth Games, and while 2019 was a little more subdued, with uncertaintysurrounding how the federal election would impact the property market, it was aperiod of consolidation that we believe will pay dividends this year,” Mr Bellsaid.

“Themarket is starting to gain momentum again and settle into a strong andcomfortable position which we predict will remain throughout the year,” hesaid.

In a sign that 2020 is off to astrong start, RWSP’s project marketing division, Ray White Projects, revealedit had secured more written expressions of interest and issued morecontracts for new projects in December and January than in the preceding 12months.

“A key aspect of the current marketis that it is being driven by domestic buyers, both local and interstate, withno significant contribution from offshore buyers from Asia. Interstatedownsizers have also been highly active in recent months, many of whom aresearching for owner-occupier-style apartments,” Mr Bell said.

“The Gold Coast has come into its ownin terms of being able to sustain the number of new projects coming to themarket, balancing that with steady demand from domestic buyers.”

Urbis reports the most popularapartment sales were two bedroom, two bathroom apartments, accounting for 64per cent of sales in the December quarter.

Urbis revealed nine new projectswere launched on the Gold Coast during the December quarter, representing anextra 518 apartments.

 A further 14 projects comprising 838apartments are expected to come onto the market in the first half of the year.

“This is a somewhat conservativesupply, which, coupled with strong demand is actually translating into steadyprice growth for the market,” Mr Bell said.

Strengthening conditions and strongsales are also witnessed in the Gold Coast’s North Shore precinct – an area defined by Urbis asencompassing Hope Island and its surrounds.

The $140 million No. 1 Grant Avenueproject in Hope Island, being developed by Aniko Group, is more than 70 percent sold.

The project was the best-selling onthe Gold Coast in the September quarter and one of the top four sellingprojects in the city throughout the December quarter.

No. 1 Grant Avenue achieved 71percent of all sales in the December quarter and has fast tracked constructionof the development’s second stage.

“Themarket response to No. 1 Grant Avenue has been tremendous,” said Aniko Group’s managingdirector George Mastrocostas.

“Itproves that demand for quality apartments is holding up well across the boardon the Gold Coast and, from our perspective, Grant Avenue is one of the mostdynamic projects we have undertaken from a sales perspective.