_Gold Coast high density residential site sales
Site Sales Volume
In the year ending June 2019, the volume of sales for development sites suitable for high-density apartments in the Gold Coast LGA was 81.3% lower, with a total of $54.8 million.
Developer Nationalities
Analysing the disclosed purchasers of high-density developments sites, resulted with offshore buyers making up 73.5% of the mix over the two years ending June 2019, by value. China was the most prominent nationality of offshore developers, represented in every offshore sale.
Site Values
The average sales rate for a high-density residential site in the Gold Coast LGA was an indicative $71,700/per apartment at the end of June 2019. This indicative rate has remained steady over the past year.
The range of development site values extended from $70,000 to $175,000/per apartment for a site with a beachfront or was beachside along the light rail spine, with an indicative rate of $130,000/per apartment in June 2019.
High-density development sites located in the Gold Coast suburban area achieved closer to an indicative of $42,500/per apartment; a range from $20,000 to $50,000/per apartment.
Apartment Pipeline
By mid-2019, there had been 3,900 new apartments added to the Gold Coast LGA’s housing supply since the start of 2018, with a further 3,300 apartments currently under construction due by the end of 2022.
There are a further 1,905 apartments with DA approval currently being marketed, also forecast to be delivered within this timeframe.
The suburbs along the light rail spine saw 1,750 new apartments completed in 2018 and H1 2019 with a further 2,250 under construction and 1,350 being marketed due for completion by the end of 2022.
In mid-2019, the remainder suburbs in the Gold Coast LGA saw the number of new apartments grow by 2,125 since January 2018. By the end of 2022, this is forecast to grow by another 1,025 apartments at construction stage and another 550 being marketed.
Bedroom Split
In the Gold Coast LGA, the distribution of bedrooms in apartments completed since 2015 have been weighted towards 2-bedrooms with 49% of the total share, followed by 1-bedrooms (32%), 3+ bedrooms (15%) and studios (4%). Currently under construction and due by the end of 2022, there is a trend towards a lesser share of 1-bedrooms (27%) and studios (0%) being built and more 2-bedrooms (51%) and 3+ bedrooms (22%).
Construction Costs
Drawing comparison to the closest capital city, the cost of construction in Greater Brisbane increased by an estimated 3.5% in the year ending June 2019. In 2019, it’s estimated the cost to build an apartment to a medium standard (with a balcony) ranges from $2,910/sqm to $3,480/sqm (plus GST), according to Rawlinsons.
New Apartment Values
Gold Coast new mainstream apartment prices have increased from an indicative $7,600/sqm in June 2018 to $7,800/sqm in June 2019, to currently range between an average of $5,200 and $15,000/sqm (excludes prime and CBD projects).
Gold Coast new apartment prices ranged from $9,000 to $15,000/sqm along the beachfront; with an indicative of $13,000/sqm in June 2019. At this time, new apartments on the riverfront could be purchased for an indicative $8,000/sqm; ranging from $6,500 to $10,000/sqm while those with an ocean view and/or beach walk had a wider range from $6,500 to $11,000/sqm (indicative of $8,000/sqm).
New apartments located in the wider suburban area recorded an indicative rate of $5,700/sqm; a range from $5,200 to $6,200/sqm.
Offshore Buyers
Offshore buyers pay a duty surcharge for Queensland apartments. This equates to 7% of the purchase price, in addition to standard state-based stamp duties and FIRB application fees.