There’s little doubt that Queensland’s property market is heating up, with all eyes on the booming Gold Coast apartment market.
But what are the key drivers of this trend and where does the opportunity lie for developers?
Jinding, which recently announced its expansion into Queensland, says that working from home, accelerated by Covid-19 lockdowns, has favoured lifestyle locations such as the Gold Coast.
Interstate buyers are flocking to warmer locations, either in the short term or as a permanent relocation. As a result, apartments and houses in this area are surging in popularity.
Included in this trend is a flight to quality, with an increasing number of owner-occupiers buying up large apartments at higher price points for early retirement or as a second home.
This is balanced by the renter, who is looking to relocate for the short- to medium-term while Covid-19 is still affecting how we work.
Urbis data supports this, showing that in the last quarter of 2020, the Gold Coast new apartment market recorded 375 sales.
This was the strongest quarterly result in more than four years.
On a precinct level, the southern beaches leads, followed by Gold Coast central and the coastal fringe.
But while demand is high, supply is struggling to keep up. In 2020, the level of new apartments brought to market declined by 41 per cent.
Based on this data, the Gold Coast market has only an 8.3-month supply of new apartments if no new projects were to launch.
This is further comprised by the many ambitious approved schemes in the market that are simply not viable and are unlikely to come to fruition.
Managing director of developments at Jinding Liz Ronson said that with strong demand from buyers, there has never been a better time for developers to launch into this surging market.
“With some of the best beaches in Australia, the Gold Coast has a premium lifestyle offering at an affordable price point,” she said.
“When you add in the recent infrastructure investment in the region and proximity to the Brisbane airport, the Gold Coast is becoming an increasingly desirable location for those seeking a sea-change.”
Jinding’s Surfers Paradise will deliver approximately 125 apartments to the area
Jinding has recently secured a residential development site at 9-11 Thornton Street, Surfers Paradise, with the proposed 27-storey development set to deliver approximately 125 high-quality apartments to the area.
“This marks our official expansion into Queensland. In light of the current market conditions, we knew that there was no better place to start than in the Gold Coast,” Ronson said.
GV Property, which specialises in development site sales and acquisitions on the Gold Coast, sold the Thornton Street site to Jinding.
Its principal and director Antonio Mercuri said Jinding had had some tough competition and had done well to secure this site.
“Demand for beachside high-density sites along the Gold Coast corridor is strong, with demand high and supply for quality sites like this at a shortage,” he said.
According to Urbis senior consultant Lynda Campbell, this demand is only set to increase. “The possibility of a Brisbane Olympics on the horizon will inject further excitement in the Gold Coast market,” she said.
“Development sites are already hard to come by, so developers need to keep an eye out for potential opportunities.”
Jinding also offers full lifecycle development services and is actively looking to partner in other opportunities on the Gold Coast.
Article Source: theurbandeveloper.com
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