The average sale price of prestige homes on the Gold Coast has jumped by more than $1 million, on the back of a resurgent Glitter Strip economy, fuelled by domestic migration and a booming tourism industry.
The Weekend Australian can reveal that luxury homeowners collected almost $200m from selling more than 60 properties on six exclusive Gold Coast waterfront streets this year.
The coast’s mansion market has boomed in 2016, with an influx of Chinese and interstate money, and improved economic confidence leading into the 2018 Commonwealth Games.
The beachfront property market was led by former Billabong executive Scott Perrin’s $25m sale of his Mermaid Beach mansion, with its 11-car garage.
Ray White Surfers Paradise CEO Andrew Bell said there was strong demand from local, interstate and international investors for prestige waterfront properties.
In recent months, he added, “there is definitely a significant increase in interest from Sydney buyers”.
“The Gold Coast market has enjoyed a very strong resurgence in 2016 and this has been marked by not only a higher volume of prestige sales but higher prices being achieved on the properties,” he said.
Ray White will next month stage “The Event” auctions, often seen as a litmus test for the market, and the first major auction event of the year.
Mr Bell said there would always be a demand for prestige properties in “blue chip areas” of the Gold Coast. “The encouraging aspect of the market is that it is strong, steady and sustained and appears to be avoiding the ‘boom bust’ cycles of previous decades, The Gold Coast economy is robust, jobs are being created from construction of facilities for the Commonwealth Games, as well as infrastructure projects.”
Gold Coast Mayor Tom Tate welcomed the lift in high-end average prices. In September, he made almost $1m profit from selling his waterfront home at Paradise Waters for $3.5m.
Mr Tate bought another waterfront home, previously owned by former Gold Coast mayor Bruce Small, at Sorrento, for $3.3m. The 1970s-era house is set on a 4424sqm block, and includes 7.6m high ceilings.
“Most pleasing to me is we have not seen the unit glut as has been experienced in Melbourne, Sydney and especially Brisbane,” the mayor said, because the Gold Coast was not oversupplied like those markets.
Mr Tate said rental vacancies on the Gold Coast were at “historic lows”, hinting that there could be scope for more unit development after the Commonwealth Games.
He said he remained focused on increasing density along the Gold Coast’s light rail line, and extending the service south to Burleigh Heads and Coolangatta Airport.
Originally Published: http://www.theaustralian.com.au/