TEN billion dollars worth of new and upcoming infrastructure is fuelling a boom in apartment sales on the Gold Coast, says a new report.
The latest Urbis report covering new unit sales during the first quarter of this year lists 149 projects completed, under construction or planned from Yatala to Casuarina.
They included the $670 refurbishment of Pacific Fair and the potential $850 redevelopment of Jupiter’s Hotel & Casino in Broadbeach, as well as $800 million to be spent on sporting infrastructure for the 2018 Commonwealth Games.
Urbis senior consultant Lynda Campbell said infrastructure spending had been included in the report for the first time because it was a key driver for new apartment sales.
“If you’re located near infrastructure such as the light rail network, universities and shops, that goes well for apartment living,” she said.
“It makes apartment living more attractive.”
Ms Campbell said the effect of the improving infrastructure was to help drive higher rates of unit sales.
This year’s first quarter saw 436 unconditional sales across 39 projects, compared to 311 sales for the same period last year.
The highest-selling project was Allegra at Southport by Andrews Projects, where 80 sales were recorded for the quarter.
Ms Campbell said new projects were continuing to see strong sales, despite fears of an oversupply of new units.
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“Our sales rate was 436, which is a clear case of supply meeting demand,” she said.
“Over the last 12 months we have had 30 new projects launched and more than 1600 sales.
“In some areas,
apartment supply is struggling to keep up with demand.”
The report comes as a major lender Macquarie Bank “black-listed” three Gold Coast postcodes as risky for apartment buyers due to an upcoming glut.
The bank listed the 4215, 4217 and 4218 postcodes as part of a list of 50 postcodes where lending to apartment buyers should be restricted.
Gold Coast REIQ chairman John Newlands said he did not foresee a glut of apartments on the Gold Coast at this stage.
“If they keep going at the rate they are, we do not have a problem,” he said.
“I do think they are exaggerating at this stage.”
Mr Newlands said the Macquarie report was in danger of spooking investors in the area.
Commonwealth Bank of Australia senior economist Michael Workman said the Gold Coast’s slower property market 18 months ago meant the area would not be as hard hit as the capital cities.
Mr Workman said improved
domestic tourism and the upcoming Commonwealth Games were contributing to ensure the Coast did not have a glut of apartments at the same levels as the capital cities.
“Basically, it was problem in the real estate valuation area 18 months ago driven by a fairly significant drop in domestic tourism,” he said.
Mr Workman said more people travelling within the country ensured an increased demand in apartments.
The Commonwealth Bank and ANZ have not made any changes to their lending policies relating to apartment buyers.
The Macquarie Bank declined to comment on the report.
Originally Published On: http://www.goldcoastbulletin.com.au/