john natoli and james ledgerwood
PRESTIGE REPORT 2013/14 CENTRAL GOLD COAST
Records are once again being broken One of the highlights of the central Gold Coast prestige marketplace in FY2013/14 was the confirmation that confidence has returned and property prices are back on the upward trend. The sale of a riverfront home in Admiralty Drive at $8,700,000 established an all-time record price for Paradise Waters and several riverfront land sales showed marked improvement over previous years. Similarly, we saw land values increase on Isle of Capri and in Mermaid Beach – both along the beachfront and beachside of the highway. During the past year we saw strong Chinese interest emerge in our marketplace with the record Paradise Waters sale and the sale of a riverfront estate in Sorrento for $7.22M. Recently a Chinese buyer, in the wake of an unsuccessful offer of 8 figures (i.e $10M or more) for a central riverfront home, went on to contract a riverfront home in Broadbeach Waters for a price above $6M. FY2013/14 also saw the absence of the large volume of financially distressed sales that had been common place for the past few years and with this we saw a tightening up of available prestige housing stock for sale as home owners seem to be happy to hold for the time being. We have analysed all residential house and land sales in the central Gold Coast prestige market which are above $2M and within a six-kilometre radius of Surfers Paradise, extending from Main Beach in the north to Nobby Beach in the south. FY2013/14 recorded a total of 42 sales, approx 18% down from the previous year of 51 sales, reflecting the tightening of the market and with the average price dropping slightly down 3.17% to $3,441,902. In addition to this prestige analysis we have explored the markets of Paradise Waters and Isle of Capri; two of the premier central Gold Coast suburbs. In the following pages we examine key markets in the central Gold Coast precincts. Sales data has been sourced from RP Data.
Main Beach
Main Beach Southport
Southport
Paradise Waters
Paradise Waters
Bundall Surfers Paradise Isle of Capri Broadbeach Waters
Mermaid Waters
Broadbeach
Mermaid Beach
Bundall Isle of Capri Broadbeach Waters
Mermaid James Ledgerwood Waters T 5570 7042 M 0417 927 517 E jamesledgerwood@mcgrath.com.au
Surfers Paradise
Broadbeach
John Natoli T 5570 7008 M 0414 453 221 E johnnatoli@mcgrath.com.au
Mermaid Beach
Prestige Sales $2M - $5M Sales of homes above $2M fell slightly in FY2013/14 to 37 down from 43 in the previous year, however in terms of price there were significant improvements on the riverfront and beachfront. Paradise Waters and Broadbeach Waters were consistent performers with steady sales volumes whilst Isle of Capri fell significantly from eight to three sales. Mermaid Beach experienced its highest number of house and land sales above $2M in over four years. Values in Mermaid Beach rose in the past year with sales of ‘beach shacks’ on standard 405m² beachfront allotments moving from $2,600,000 (Nov 2012) in Ocean View Easement (Albatross Avenue), to $3,050,000 (Aug 2013) and $3,476,900 (Nov 2013) both in Hedges Avenue. Paradise Waters experienced similar improvements in land values with two sales along Commodore Drive at $2,780,000 and $2,450,000, with a total of nine sales between $2M and $3.05M. Sorrento and Broadbeach Waters were very active in the $2M - $3.5M range while Southport and Isle of Capri experienced quiet years due to substantially lower levels of properties available for sale within this range. The trend of locals upgrading in terms of both location and residence was consistent over each of the past two financial years as buyers recognised that the cost of upgrading (price differential, commission, stamp duty) has been at its lowest in many years. Properties in the $2M - $5M prestige market were at their most affordable in FY2012/13 with sales suggesting that prices started to recover in most suburbs at a controlled rate throughout FY2013/14. As a result, buyers who expect to secure a ‘bargain’ are finding their opportunities are now very limited and in many cases the property they missed out on 12 months ago is selling for a higher price in 2014. Moving forward our outlook is for continued improvement in confidence and prices.
Top 5 Sales 2012-2013 ($2M -5M) Address
Top 5 Sales 2013-2014 ($2M -5M) Price
Date
Address
Price
Date
Marseille Court, Sorrento
$4,700,000
Aug 2012
Hedges Avenue, Mermaid Beach
$4,800,000
Sept 2013
Admiralty Drive, Paradise Waters
$4,582,500
Feb 2013
Hedges Avenue, Mermaid Beach
$4,700,000
Nov 2013
La Scala Court, Isle of Capri
Confidential
Jun 2013
Admiralty Drive, Paradise Waters
$4,200,000
Aug 2013
Via Roma, Isle of Capri
$4,200,000
Oct 2012
Wildash Street, Southport
$4,200,000
Oct 2013
The Promenade, Isle of Capri
$4,000,000
Oct 2012
Hedges Avenue, Mermaid Beach
$4,100,000
Mar 2014
Total Sales
43
Total Sales
37
Total Sales Volume
$125,474,551
Total Sales Volume
$109,039,900
Average Price
$2,918,012.81
Average Price
$2,947,024.32
Prestige Sales $5M+ There were a total of five sales above $5M in FY2013/14 with the highest sale of a riverfront home for $8,700,000 breaking the all-time record for Paradise Waters. A riverfront estate in Sorrento, once regarded as the largest home in the southern hemisphere, sold for $7,220,000. Both of these homes sold to Chinese buyers who are now showing considerable interest in the Gold Coast market. The remaining sales were to local Gold Coast buyers with no sales recorded to interstate buyers. The average price above $5M marginally increased this financial year to $7,104,000; however the number of sales dropped to five compared to eight in the previous year. For the second consecutive year the highest price in the central Gold Coast market was achieved on the Nerang River. While the best of our beachfront properties enjoyed a healthy recovery in price over the past 12 months, they still struggled to get back above the $10M range that we have previously seen. There are two streets that have featured in both FY2012/13 and FY2013/14 – riverfront at Admiralty Drive, Paradise Waters and beachfront at Hedges Avenue, Mermaid Beach, with Admiralty Drive featured twice in the past year. The Southport riverfront saw three sales above $5M in FY2012/13 with no sales recorded at this level during the past year. However this is not unusual given the Southport riverfront has always been tightly held and the number of sales in FY2012/13 was considered extraordinary. Of the five sales this year, two beachfront properties sold under the hammer at auction, whilst three riverfront properties were sold by private treaty. All properties sold above $5M in FY2013/14 were actively marketed with one property recording 1027 days on market. There were no ‘off market’ sales.
Top 5 Sales 2012-2013 ($5M+) Address
Top 5 Sales 2013-2014 ($5M+) Price
Date
McMillan Court, Southport
$9,800,000
Jan 2013
Winchester Street, Southport
$9,500,000
Main Beach Parade, Main Beach
Price
Date
Admiralty Drive, Paradise Waters
$8,700,000
Mar 2014
Jul 2012
Albatross Avenue, Mermaid Beach
$7,350,000
Sep 2013
$8,275,000
Nov 2012
Marseille Court, Sorrento
$7,220,000
May 2014
The Corso, Isle of Capri
$6,350,000
Mar 2013
Hedges Avenue, Mermaid Beach
$6,600,000
Jun 2014
Admiralty Drive, Paradise Waters
$5,900,000
Jul 2012
Admiralty Drive, Paradise Waters
$5,650,000
Dec 2013
Total Sales Total Sales Volume Average Price
8 $55,825,000 $6,978,125.00
Address
Total Sales Total Sales Volume Average Price
5 $35,520,000 $7,104,000.00
Isle of Capri Isle of Capri has finally seen the completion of the upgrade to its local shopping centre renamed ‘Capri on Via Roma.’ This is a major boost for the area providing great convenience to local residents and attracting awareness from surrounding neighbourhoods and visitors to the Gold Coast. In FY2012/13 there were 47 recorded transactions in Isle of Capri within a broad range of $6,045,500, with sales commencing at $304,500 for a dry block, up to $6,350,000 on Main River in Adam’s Basin, with an average price of $1,408,182. The number of recorded sales in the 2013/14 financial year was comparable at 50 however there was a significant difference in the range of values of only $1,927,000 from a low of $573,000 up to only $2,500,000 for a canal front home. Another significant difference in FY2013/14 is the mix of properties sold on the north side of Via Roma/Salerno Street as compared to the south side – 18 sales on the north and 32 on the south. In FY2012/13 there was an even spread with 24 properties sold on the north side and 23 on the south side. We believe that the convenience of the newly completed shopping centre is retaining the north Capri residents. Ten properties above $2M changed hands in FY2012/13. This is in sharp contrast to FY2013/14 where only four properties sold at $2,000,000 or more with the highest being only $2,500,000 on a canal front on the south side of Capri. Whilst the highest transacted price is low for this area there have been several offers made well above the $2M range with the owners choosing not to sell. Most properties exchanged in FY2013/14 have sold at prices greater than the comparable sales of the previous financial year. The outlook for Isle of Capri in 2014 and beyond is very positive as we believe interest in the suburb will continue to grow as people discover the benefits of local infrastructure development such as the ‘Capri on Via Roma’ shopping centre, as well as the convenience of the newly completed light rail transport system – G:link which passes directly by the east side of Capri. Renewed confidence in the Gold Coast market place as a whole will also drive further growth in this central precinct. Top 5 Sales 2012-2013 Address
Top 5 Sales 2013-2014 Price
Date
Address
Price
Date
The Corso, Isle of Capri
$6,350,000
Mar 2013
Etna Street, Isle of Capri
$2,500,000
Aug 2013
La Scala Court, Isle of Capri
Confidential
Jun 2013
Amalfi Drive, Isle of Capri
$2,150,000
Nov 2013
Via Roma, Isle of Capri
$4,200,000
Oct 2012
Amalfi Drive, Isle of Capri
$2,050,000
Feb 2014
The Promenade, Isle of Capri
$4,000,000
Oct 2012
The Promenade, Isle of Capri
$2,000,000
Apr 2014
Naples Avenue, Isle of Capri
$3,150,000
Feb 2013
Naples Avenue, Isle of Capri
$1,950,000
Dec 2013
Total Sales Total Sales Volume Average Price
47 $66,184,550 $1,408,181.91
Total Sales Total Sales Volume Average Price
50 $55,743,795 $1,114,875.90
Paradise Waters Paradise Waters has lead the pack in terms of price recovery over the past year with significant increases in value for riverfront land and an alltime record sale price in Admiralty Drive. This recovery has largely been driven by the return of confidence amongst buyers who are driven by their aspirations to secure some of the best waterfront real estate in the central Gold Coast and those already residing in the area upgrading their position and residence. The most active price range in 2013/14 was $2M and under with 21 sales recorded, up from 14 in the previous year. This price range has largely been driven by purchasers seeking a canal home with scope to renovate or rebuild. Sales in the $2M to $3M range were consistent however between $3M and $4M there was only 1 sale compared with 5 in 2012/13 mostly due to limited availability of stock at this level. The shift in confidence in Paradise Waters has driven some significant price increases in riverfront land sales particularly in Commodore Drive. In April of 2013 a 1,129m² vacant block sold for $1,992.91/m² which at the time was a fair price, in 2014 we have seen the $/m² jump significantly in Commodore Drive to $2,744.32/m² (1,013m² block) in April and $2,838.93/m² (863m² block) in May, construction is set to commence shortly on both allotments. These land sales follow the all-time suburb record of $8,700,000 in Admiralty Drive in March 2014. Paradise Waters is set to continue its positive momentum through 2014/15 as stock levels remain low and buyer enquiry remains very strong particularly for older canal homes. Publicity surrounding record sales and strong price growth is helping to cement the new pricing in the suburb and its profile as prices continue their recovery and buyers are expected to move faster and compete more aggressively as a result, a positive sign for sellers over the coming year.
Top 5 Sales 2012-2013 Address
Top 5 Sales 2013-2014 Price
Date
Admiralty Drive, Paradise Waters
$5,900,000
Jul 2012
Admiralty Drive, Paradise Waters
$4,582,500
Commodore Drive, Paradise Waters
Price
Date
Admiralty Drive, Paradise Waters
$8,700,000
Mar 2014
Feb 2013
Admiralty Drive, Paradise Waters
$5,650,000
Dec 2013
$3,900,000
Feb 2013
Admiralty Drive, Paradise Waters
$4,200,000
Aug 2013
Commodore Drive, Paradise Waters
$3,750,000
Apr 2013
Viking Court, Paradise Waters
$3,050,000
Nov 2013
Admiralty Drive, Paradise Waters
$3,350,000
Apr 2013
Norseman Court, Paradise Waters
$2,850,000
Jul 2013
Total Sales Total Sales Volume Average Price
28 $63,489,920 $2,267,497.14
Address
Total Sales Total Sales Volume Average Price
32 $69,148,000 $2,160,875.00
A Selection of our Recent Sales
SOLD Albatross Avenue Mermaid Beach
SOLD
SOLD
The Corso Isle of Capri
SOLD ‘Kapalua’ Penthouse Main Beach
SOLD
Commodore Drive Paradise Waters
SOLD
River Crescent Broadbeach Waters
SOLD
Hedges Avenue Mermaid Beach
SOLD
The Corso Isle of Capri
Hedges Avenue Mermaid Beach
A Selection of our Current Listings
57 The Corso Isle of Capri
For Sale over $15,000,000
19 ‘Eclipse’ Broadbeach
For Sale $1,200,000
42 & 44 Admiralty Drive Paradise Waters
5 Valencia Avenue Isle of Capri
Auction
For Sale $2,800,000
4 ‘Allure’ Surfers Paradise
28 Buccaneer Court Paradise Waters
For Sale $3,250,000
For Sale
117 Commodore Drive Paradise Waters
For Sale $7,500,000
5A,B,C Vantage Point Drive For Sale over $975,000 Burleigh Heads