So much has been said about the Gold Coast apartment market ever since the start of the pandemic.

There was a COVID-induced spike as demand skyrocketed, part-driven by southern stage dwellers speeding up their retirement plans, and part professionals who realised they could still do their job and work from anywhere in the country.

The well-coined phrase, "what goes up, must come down", was banded around the Gold Coast market in particular.

While that has to happen to an extent, the Gold Coast unit market has held up as well as any other market in the country.

The June Home Value Index by property data analytics firm CoreLogic showed just a -3.1 per cent decline in unit values in the 12 months to June, helped by a 1.5 per cent rise in unit values across May.

It was another month where unit value growth outstripped houses. Houses grew by 0.9 per cent, and are -8.7 per cent down from this time last year.

The median unit value on the Gold Coast is now $664,000, compared to $987,000 for houses.

<h2>What's happening in the Gold Coast off the plan market?</h2>

Feedback from agents has been strong, given the tight supply and continue demand

Enquiry isn't necessarily growing, but quality of enquiry has improved dramatically over the last few months

Siera Group Founder and Managing Director Brent Thompson says the Gold Coast is continuing to show its market strength and appeal to the owner-occupier/ lifestyle purchasers, with the demand for high-quality, newly built residential dwellings being at the forefront of demand.

Siera is currently developing Tapestry, where&nbsp;almost 70 per cent of their current purchasers are owner-occupier couples with the intent of downsizing their family homes in preparation for their early retirement planning.

[smartcode_project:default project_id=108641 project_image_fid=193359]

"Since the Easter holidays, we have experienced a large number of enquiries and sales from this demographic both local and outer state, with an influx of these leads continuing to come in with pre-construction preparation now underway on the site," Thompson says.

There's also another type of buyer that Thompson has seen recently.

[smartcode_project:default project_id=108641 project_image_fid=192961]

"Quite commonly, we are also seeing a large majority of our investors state their intention of re-purposing the property as their future home in the next five to 10 years.

"A recent example of this was seen with our client and Nine News Weather Presenter, Garry Youngberry, who will initially purpose the property as an investment, before occupying it himself and living out his long-term plan of settling down on the Gold Coast and enjoying all that the South-East Queensland climate has to offer. "

Despite a slowdown in interstate buying activity from when COVID first started to lock down states in early 2020,&nbsp;S&amp;S Projects Managing Director Paul Gedoun says he's still receiving significant enquiry from interstate buyers who are flocking to the Southern Gold Coast,&nbsp;enticed by its idyllic beachside lifestyle and abundant amenities.

"The allure of the Southern Gold Coast's pristine beaches, vibrant atmosphere, and recreational opportunities has captivated the attention of buyers," Gedoun says.

"This end of the coast has been able to maintain the true beach and surf culture that the Gold Coast was famous for and is drawing people from far and wide.

"We certainly witnessed that when we brought Flow, Awaken and Esprit to the market and have had the confidence to continue to acquire sites here.”

[smartcode_project:default project_id=102921 project_image_fid=172129]

Steer Developments Founder and Managing Director Rob Steer says there's still a level of cautious optimism in buyers.

“Off the plan buyers want confidence," Steer, who is developing the high-end Palm Beach development, Cote, said.

"They are not going to commit to a 10 per cent deposit if they do not know the project is coming out of the ground.

[smartcode_project:default project_id=112548 project_image_fid=205277]

"This is reflective of finished stock on the market. Good quality stock is still selling.

"Having a stable builder with a reputation that things are going to happen help the buyers confidence.&nbsp;There is a lot of money out there, but people are uncertain and hence being conservative."

Joel Robinson

City Beat June 2023: Gold Coast apartments defy downturn, rebound sharply

The May interest rate rise has done nothing to dampen the Sydney property market across May, recent data has shown.

The latest Home Value Index from property data analytics firm CoreLogic shows dwellings in Sydney, both houses and units, rose by 1.8 per cent.

Houses jumped 2.1 per cent, largely due to the lack of supply, while units saw a second consecutive month of over one per cent gains.

Units, which in corporates apartments and townhouses, rose by 1.1 per cent across May, following 1.2 per cent gains in April.

The rolling quarterly figures have Sydney units up 3.3 per cent, now approaching a median of $800,000.

Sydney's 1.1 per cent jump was the joint second best performing unit across the capitals, level with Brisbane but some way behind Perth's 1.7 per cent spike.

Read more:&nbsp;<a href="/news/nsw/city-beat-may-2023-sydney-sees-strong-off-the-plan-sales-activity">City Beat May 2023: Sydney sees strong off the plan sales activity</a>

<h2>What's happening in the Sydney off the plan market?</h2>

Developers are seeing success at both affordable, what many would deem unaffordable, ends of the market.

Deicorp, who deliver around 1,000 apartments a year to the Sydney supply chain, have seen strong sales in their Western Sydney projects.

They've been securing sales at a rate of more than one every two days at their Tallawong Village project in Rouse Hill, which is being marketed by CBRE with prices starting from $540,000.

[smartcode_project:default project_id=106821 project_image_fid=169999]

Deicorp's Executive Director Robert Furolo says the first 5 months of 2023 has seen a significant increase in inquiries from purchasers and a corresponding increase in sales.

"Our Tallawong Village project continues to receive strong buyer interest, with more than 60 sales in the past 90 days."

Furolo said however there is growing demand in the $1 million and above bracket. Nearly&nbsp;20 per cent of all sales across their projects have been above $1 million.

National developer Goldfields believes they're hitting the affordability sweet spot at their first Sydney project, The Bryson of Chatswood.

Goldfields CEO Lachlan Thompson said they've seen a&nbsp;a lack of affordable investment properties in the market due to high demand for available stock.

"In terms of price point, the Sydney sweet spot is around $1.5 million to $1.8 million for two-bed, two-bath apartments," Thompson says.

"Many of The Bryson’s apartments come in well under that, positioning us well in the Greater Sydney market.”

[smartcode_project:default project_id=21170 project_image_fid=210274]

Thompson says strong demand,&nbsp;coupled with limited new builds in Chatswood over the past five years, have been the key drivers behind the strong enquiry.

The rebound in established house prices is causing more affordability issues, Thompson says, which is bringing local families in looking at the three-bedroom apartments.

On the other end of the affordability spectrum, stock is flying off the shelves.

Aqualand continue to report huge success at their $1 billion North Sydney tower, AURA by Aqualand.&nbsp;

Alex Adams, Aqualand Head of Sales and Marketing, says they've seen&nbsp;a significant upward trend in buyer demand for well-located, high-quality apartments over the past six months.

"That continues unabated," Adams says.

"We’ve experienced month-on-month growth since November 2022 with a spike in sales every month this year. The project has clocked over $100 million in sales over the last three months alone."

[smartcode_project:default project_id=30959 project_image_fid=202991]

Adams says sales have been&nbsp;across all apartment types at AURA, and are buoyed by major public domain improvements, transport development and the robust growth potential of North Sydney more broadly.

"We believe these strong sales are a positive sign for the broader luxury apartment market in Sydney.”

It's a similar story in Woollahra, one of Sydney's most sought-after suburbs.

National developer Fortis exchanged $116 million worth of residences&nbsp;at the Woollahra Collection over the launch weekend, with prices ranging between $2.6 million and $16.5 million.

<img alt="The Woollahra Collection" data-entity-type="file" data-entity-uuid="8f1f4a6a-6209-4428-9753-7b875d238fe9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-06-01%20at%209.40.54%20am.png?VersionId=1oKg6R8Qpwf9ykkbOz5q89IXqTMjtv9i" />

Fortis Associate Director Jonh Yacoub says buyers in the top end of the market are seeing the value in projects that offer premium quality and amenities in sought-after locations, which has helped propel the flight to quality.

"While we were extremely happy with the high level of interest and buyer activity with Woollahra Collection, we also had a lot of confidence in the product we were bringing to market and the overall success of the project," Yacoub says.

"Woollahra is one of the most tightly-held suburbs in Sydney and we spent months in planning to ensure we made the most of this once in a lifetime opportunity.

"We collaborated with a team of some of the best architects and designers in Australia to develop the best possible design outcome and offerings in this project.

"Woollahra Collection has been extremely well received by purchasers and the wider community, clearly demonstrating market demand for premium residences.“

A recent report by Knight Frank found Sydney ranked ninth out of 12 key markets tracked globally for the number of super-prime sales of over US$10 million over the last 12 months.

Over Q1 2023 Sydney had 10 super-prime settled sales of greater than US$10 million, ahead of Paris and Orange Country, both of which recorded three sales.

Over the 12 months to the end of March, Sydney recorded 76 super-prime sales, putting it in ninth place, ahead of Geneva (63), Orange County (54) and Paris (26).

The total value of Sydney super-prime sales over the 12-month period was US$1.233 million, with an average sale price of US$16.2 million.

The rolling quarterly figures have Sydney units up 3.3 per cent, now approaching a median of $800,000 again

City Beat June 2023: Sydney secures off the plan sales success at affordable and luxury ends of the market

Brisbane's unit market continues to go from strength to strength.

There was hardly any downturn felt in the Queensland capital, with lack of supply and continued migration keeping prices firm while its eastern seaboard counterparts suffered near double digit losses over the last year.

Brisbane has actually seen 1.5 per cent growth over the last 12 months, according to CoreLogic. Unit values grew 0.9 per cent across April, the second best performing capital behind Sydney.

The median value of units in Brisbane is now approaching $500,000.

Colliers Director Andrew Scriven, who is handling sales at Consolidated Properties recently launched Monarch Residences in Toowong, says that in an environment of relative uncertainty, enquiry for off the plan apartment projects in Brisbane remains healthy.

[smartcode_project:default project_id=113455 project_image_fid=211496]

"By far the largest group is local owner occupiers who account for approximately 70 per cent of enquiry," Scriven said.

"This cohort consists of downsizers, rightsizers and to a lesser extent first home buyers all being attracted to different products types and locations."

Scriven added that affordability remained an issue for a large portion of the market, with&nbsp;less and less stock available in the sub $700,000 range, however there are good options available for those with larger budgets.

There's also been enquiry grow from investors, who are looking to capitalise on growing yields due to sub one per cent vacancy rates in the inner city.

[smartcode_project:default project_id=113455 project_image_fid=211498]

Developer Dibcorp has timed their Bide, Newstead apartment tower perfectly. They're able to point to an under construction project, which Keenan &amp; Co.'s Fraser Bryne says is now top of the list of questions to ask when enquiring.

"Their first question is 'is the project under construction, and if not, why?'" Byrne says.

"The second question is 'who is the development team and what have they delivered before?'".

[smartcode_project:default project_id=102309 project_image_fid=163977]

Byrne says these are completely understandable requests in the current climate.

"Buyers have access to a vast amount of information nowadays and are often well educated in buying off the plan, so they want full confidence in the project.

"I think these are completely understandable requests and in fact encourage buyers to ask these questions in their search for the right property because if they can be answered with confidence, they should feel comfortable proceeding."

[smartcode_project:default project_id=102309 project_image_fid=163974]

The Longland Street project has benefitted from the tight supply in Brisbane's inner-city, which Bryne says is driving strong buyer demand.

The last residences at Bide have just been released to the market, a collection of two and three-bedroom skyhomes.

Richard Lawrence, Founder and Managing Director at Position Property, says there's a strong imbalance between supply and demand, which isn't likely to change in the immediate future.

"We are heading into new territory in the Brisbane market with the extreme tightening of supply of new product due to more challenging construction costs," Lawrence says.

"Simultaneously, we are seeing high demand.

"Queensland’s population is growing overwhelmingly faster than every other state, with 2,201 people moving to the state each week on average in the past year.

"The majority of this growth split between interstate and international migration, as opposed to natural increase.

"Fundamentally, demand is overwhelmingly outstripping not only current supply, but the short term pipeline of supply.

"Along with this, rental vacancies are at historic lows with yields consistently exceeding the southern states, making the timing perfect for investors to enter the market.

There was hardly any downturn felt in the Queensland capital, with lack of supply and continued migration keeping prices firm while its eastern seaboard counterparts suffered near double digit losses over the last year.

City Beat

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News