The Gold Coast continues to rise above the pandemic, providing bang for buck for many ultra high-net worth individuals who bought into the unyielding prime residential market.
The region recorded a 156 per cent increase in annual sales turnover for prime residential property, the biggest in the country, according to Knight Frank’s Australian Prime Residential Review report.
Knight Frank head of residential research Michelle Ciesielski, who authored the report, said Gold Coast property had chalked up a 10.5 per cent increase in prime prices, the second-highest behind Sydney at 10.7 per cent.
“The Gold Coast saw the biggest rise in prime annual sales turnover at 156 per cent, followed by Brisbane at 135 per cent,” Ciesielski said.
“Gold Coast prime properties were on the market 19 days less on average [than the previous quarter], the biggest reduction across Australia.”
The Gold Coast also offered more for your money.
According to Knight Frank data, US$1 million would buy you 124sq m of luxury floor space in the Gold Coast, while in Melbourne it could buy about 88sq m and a paltry 44sq m in Sydney.
Prime residential performance, third quarter 2021
| Region | Capital Growth YoY | Sales Volume YoY | Gross rental yield |
|---|---|---|---|
| Sydney | 10.7% | 119% | 2.07% |
| Melbourne | 6.5% | 85% | 2.69% |
| Brisbane | 8.4% | 135% | 2.41% |
| Perth | 10.4% | 120% | 1.78% |
| Gold Coast | 10.5% | 156% | 3.48% |
^Source: Knight Frank Australian Prime Residential Review
Sherpa Property Group chief executive Christie Leet told The Urban Developer late last year that beachfront prices at nearly $20,000 per square metre were “towards the top end, well and truly”.
“There’s a fair argument that we might have hit a peak,” Leet said.
“But there’s still plenty of people out there buying tower sites that are going to take three or four years to develop.”
Towards the end of 2021 there were more than 50 residential projects with an estimated investment value of $4.8 billion under construction on the Gold Coast.
Nationally, the third quarter of 2021 was the second highest on record for prime sales, recording 1971 properties sold, while the volume of prime sales was up 119 per cent across the year ending September 2021.
Knight Frank forecast prime prices would increase 11 per cent across 2021, and a further 8 per cent in 2022.
Luxury rental prices on the Gold Coast have risen 10 per cent with yields the strongest in the Australian prime residential market at 3.48 per cent.
The pace of development of prime apartments and townhouses across Australia has slowed. About 26,700 new high-end apartments and townhouses were built in 2020, while the pipeline was 42 per cent less for 2021 with just 15,500 under construction.
Almost half of these new apartments are for the Melbourne market (7450), while Sydney and the Gold Coast were slated for more than 2000 properties each.
Globally the strongest prime residential capital growth was recorded in Miami, followed by Seoul, Shanghai, Moscow and Toronto.
Sydney was ranked 14th, followed by the Gold Coast (15th) and Perth (16th). Brisbane was at 21, while Melbourne came in with a middling performance at 24.
Article Source: www.theurbandeveloper.com
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