Issue 8 | April 11th | The First High-Rise Development On Chevron Island
Hi, Andrew Bell here and it is great to be with you again. Today, I am here at the onsite display of a brand-new, first-of-its-kind development, and one that has been specifically designed for the huge demand we have from downsizers, and particularly baby boomer downsizers.
Not everyone can afford or indeed wants to live on the absolute beachfront and so, up until now, they have had very little choice for brand-new stylish apartments. What downsizers are looking for is a very central location, in a boutique style building but preferably not in among all our visiting tourists in high occupancy holiday buildings. Here at Chevron One, we have a 40-level apartment building designed by internationally acclaimed architects Marchese Partners and built by leading builders Hutchinson Builders on behalf of developers Benson’s Property Group.
Chevron One offers an incredibly classy building for owner-occupiers. In fact, the developer himself has purchased the penthouse to live in as his permanent home, and so we can be assured that this building is going to be at the highest-level quality, as are all Benson’s developments. The quality will astound you when comparing to other developments here on the Gold Coast and it includes over 2,000sqm of facilities ranging from a Residents Club with concierge services, a library, residents lounge and dining, yoga and sculpture gardens, gymnasium, and two swimming pools. The apartments will be larger in size than usual standard apartments here on the Gold Coast and include large balconies with the most extraordinary views; incorporating the river, breathtaking city lights, and the beach.
Chevron One is the first high-rise development on the residential Chevron Island in an incredibly strategic location, away from the rowdy and busy tourist streets of Surfers Paradise yet only 100m away from everything you could possibly want and need, and only a couple of hundred meters to the beach. Having just launched this building, it also gives buyers a window of time to be able to lock in a purchase today and still have several years in which to see out their organizing of a relocation to the Gold Coast and the sale of their current properties with the comfort of time. The developer has also provided a huge array of options to help with that buying process ranging from $20,000 worth of furniture packages, or assistance around stamp duty and legals, or even some covering of Body Corporate fees. All these options to help those downsizers in their move to this breathtaking location.
I thought I would share with you a couple of interesting facets of the real estate market. The first being that a Reserve Bank paper just recently released shows that changes in interest rates are the primary driver behind the movement in house prices and not, as most people feel, a simple balance between supply and demand. The report says that much of the strength in housing prices and construction levels over the past few years can be explained by the fall in interest rates. You will note of course that we are at record historically low-interest rates at present and that has made it so appealing to buy real estate and has created a lot more buyers than would normally have been the case if interest rates were at higher levels. With interest rates still at record lows, it does mean that real estate is still an attractive option for so many Australians.
The second fact I wanted to share was the latest figures on unemployment that do have an impact on many aspects of the real estate market. Unemployment has dropped from 5.1% to 4.9% and breaks through the critical 5% figure that is significant in the Reserve Banks strategizing. 5% is considered full employment, so below 5% we will find resistance to lower interest rates any further, although there are other factors that come into play. It will also put upward pressure on wages which the Reserve Bank will want to see play out. They would love to see wages growth as long as it does not damage the overall economy. So it does appear that perhaps interest rates are on hold at their current level and will be so for quite some time.
As we can see from these two reports, the setting remains very positive for real estate buyers and supports the real estate market at present. We have been through some price correction which was well overdue because of the huge surge in prices that did occur in many markets throughout Australia. That correction has worked its way through, and you will find that prices start to stabilise as we progress through the balance of this year. Do not delay in jumping on buying opportunities as negotiations on price may get harder as more buyers come back online.
Some more great news coming out of the last week with Ray White Prestige recording yet another 2 very prominent prestige sales over this last week. One in Paradise Waters with 52 parties inspecting throughout the marketing campaign, resulting in 3 offers prior to with 1 of those too good to refuse; seeing a sale happen just prior to auction at $5.7 million. The other sale was a Cape Cod-inspired home which attracted international interest as well as the local market, resulting in over 150 inspections. This home was also due to go to auction last Sunday but on Saturday evening we presented the sellers with an offer they just couldn’t say no to (subject to confidentiality). Two really significant sales to add to the series of high-end sales we have been doing this year.
It was great coming to you today from Chevron One which is undoubtedly the most pioneering concept I have seen in over 15 years here on the Gold Coast. Come along and have a look at this as you will be surprised by the many features and when you take them all into consideration, it will make it the most desirable location and building to purchase in.
Contact: 1300 110 164
Display Suite: 42 Stanhill Dr, Chevron Island
See you in a fortnight’s time.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group