Owner-occupiers underpin the Gold Coast’s off-the-plan market
Upgraders and downsizers are underpinning the Gold Coast’s new apartment market with buyers buoyed by the Federal Government’s HomeBuilder grant.
LJ Hooker Broadbeach has recorded a $17 million sales surge in recent weeks, with almost 80 per cent of sales (by volume) off-the-plan or newly finished residences.
The team, led by Principal Matt Conduit and New Apartments Director Dean Muldoon, have been busy customising the size of apartments for buyers in Mali Residences, Mermaid Beach. Construction of the residential-only building is expected to be completed mid-2021
Mr Muldoon said most of the buyers have been looking for an easier, low-maintenance lifestyle by the sea and within walking distance to food and entertainment.
“As they’re owner-occupiers they’ve also sought to customise the size of apartments by joining two together to make larger lifestyle spaces,” he said.
“Thankfully, the developer was happy to accommodate these design requests. With over 600sq m of facilities on level nine, I can’t think of a better place to have a sundowner while looking out over the ocean when it’s all complete.”
The recent Mail sales include one of the two signature penthouses last week for $3.875 million. LJ Hooker Broadbeach has now recorded a total of $35 million in unconditional sales within the development.
Mr Conduit said all but one apartment in the Rawcorp’s $36 million Bellevue Residences at the Glades Golf Course have now sold, including a Robina apartment record price of $1.35 million.
“We have handled the sellout of this building with Rawcorp once again delivering high quality oversized apartments to the marketplace.
“Traditionally the Gold Coast’s new apartment market has been driven by investors, so it’s a real sign of confidence that owner-occupiers are snapping up opportunities to secure these new, quality homes built for luxury and lifestyle located in this prime destination.
There’s a real lack of stock on the market, and listings are tight, so it’s another reason why the off-the-plan market is very healthy”
Mathew Tiller, LJ Hooker’s Head of Research, said a combination of pent up demand, due to market uncertainty from March to May, record low interest rates and federal and state government stimulus measures, have seen off-the-plan sales surge over the past two months.
The Federal Government’s $25,000 HomeBuilder grant is available to anyone that buys an off-the-plan apartment or new house and land package, and Queensland’s First Home Buyer Grant provides $15,000 to eligible purchasers.
“If a savvy first home buyer combines these two grants it provides a significant incentive to get into the market,” he said.
“Traditionally, it’s investors which have been the main driver of off-the-plan purchases, however, it’s now not the case.
“With investors excluded from most government stimulus measures its young couples looking to upgrade, retirees looking to downsize and first home buyers driving this sales surge.
“Record low interest rates have also played a big part in lifting demand with mortgage repayments, in some parts of the country, now being on par with rental payments.
“The Federal Governments HomeBuilder package has reportedly had very high take-up, as evidenced on the Gold Coast, since it was launched in June.
“This measure has been amplified by the introduction of state governments stimulus package, such as waiving stamp duty for first home buyers or additional incentives to build a new home or purchase off-the-plan.”