Issue 19 | September 12th | Downsizers Affect Apartment Prices
Hi, Andrew Bell here and haven’t we well and truly moved through Winter. We have already had some days in the beginning of Spring as high as 32 degrees and it appears, we may have moved straight from Winter to Summer this year.
The last couple of months I have highlighted the strongest and most obvious drivers of the Gold Coast property market at present, and those are both the local and national downsizers.
The latest figures from Core Logic showed that prices have risen around the country once again and this will undoubtedly give confidence to many intending to downsize to get their properties on the market. When the market was in a correction phase, we heard from many potential downsizers that they did not think the timing was right to sell in Sydney or Melbourne and would wait for an improving market. Well, that improving market is here now and so we are likely to see an increase in the downsizers out of Sydney and Melbourne hit our market through this Spring and in the lead to Christmas. More stable market conditions will also give confidence to local downsizers to do the same and we are already seeing the signs of that at our open homes each weekend.
We are also now getting clear evidence of the impact of these downsizers. The report out a fortnight ago shows that the Gold Coast’s average sale price of new apartments has hit a new high, reaching $875,817 in the second quarter of this year, which is up on the previous high of $812,045.
However, there is a bit more to the story here. It is not simply that the rate per square metre has risen, but it is that there are significantly more sales happening in bigger apartments where the downsizers are coming out of larger homes and don’t want to move into small apartments but larger apartments. Our developers are getting the message as well and are moving away from building small apartments, which is why buildings such as One16 The Esplanade has been receiving such strong demand in the marketplace. Brand-new, on the Esplanade with uninterrupted views straight out over the ocean, everything at your doorstep such as patrolled beaches, coffee shops, restaurants, and easy access to major shopping and transport hubs. It is a lifestyle that downsizers are looking for and they are certainly leaving their footprint in the real estate market. It is the baby boomers at work again.
We are thrilled for our office to again receive recognition as Queensland’s No. 1 Residential Office for the 27th year in a row, No. 1 International Residential Office based on No. of Sales, No. 2 Commercial Office Internationally, and a whole host of other recognitions such as the No. 1 Commercial Leasing Office Internationally, and No. 1 Residential Property Management Office. I am not trying to boast here but to give all our clients confidence that we are your trusted advisors. With over 30 years here on the Gold Coast, we have the experience, the knowledge, the resources, and the personnel to deliver incredible results for our clients whether they are buyers, sellers, landlords or tenants. It will always be our delight to assist in any way we can and in a world where people are faced with more uncertainty about wise decisions, please feel free to reach out at anytime and you can be sure we will work to give you the best advice on any topic you may have.
This weekend is the Ray White Surfers Paradise Muscular Dystrophy Ball and I look forward to seeing so many of our clients there as we come together to raise money for these young children with this dreaded disease.
Until I am with you in a fortnight’s time, let’s look after one another.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group