The Trend For Gold Coast Apartments
The big success story within the Gold Coast real estate market at present is the booming apartment market, particularly in the outer-ring areas of the city. The beach strip, however, also shows signs of strengthening its apartment sales in the near future.
The outlying suburbs are growing, in part, due to the affordability factor. The average cost in the central district is around $690,000 but is only about $425,000 in fringe districts. That is a difference of $265,000, and it is attracting down-sizing homeowners to suburbs like Arundel, Ashmore, Carrara, Parkwood, Varsity Lakes, etc.
These zones are out-selling the plush, million-dollar apartments along the coastal strip. Since outlying land is cheaper, builders can afford to price these units much lower than in places like Southport, Surfers, and Broadbeach. Many of these units are built near to golf greens, lakes, and retail centres. They are also generally much “closer to the ground” than the inner-city high-rises.
Not only relocating families but also students are a major factor in this growth of the outlying apartment market. The 6,000-plus students residing in the city need affordable apartments to rent, and investors have taken pains to provide it for them in places like Robina and Varsity Lakes.
None of this is to say that the “glitter strip” is dead or dying, however. There are projects in the works there as well, though they tend to be smaller and more “boutique.”
Already this year, there are a number of new projects underway in Broadbeach, Surfers, and Southport, and the apartment market look to be strong there as well throughout 2015.
Another factor to take into account is the build-up along the city’s light rail line. New high-rise developments are planned for this strip, and anywhere within walking distance of the light rail system has good potential for growth.
Finally, there does not appear to be much danger at present of an over-supply of apartments stagnating the market. There are about 1,000 apartments sitting empty, and about 300 are selling each quarter- not even a 12-month “back-up supply.” Even with the new apartments being built, few believe that “apartment glut” will set in and kill this booming market.