john natoli and james ledgerwood
PRESTIGE REPORT JUNE 2013 CENTRAL GOLD COAST
The only way is up There has been a noticeable change in sentiment with more sales occurring in the central Gold Coast prestige property market over the first four months of 2013 than we have seen since the peak of the market in the late 2000s. We are seeing stronger buyer enquiry coming through open house inspections and unprecedented enquiry from online marketing strategies. Pre-auction offers are now more common place and the McGrath auction clearance rates are at their best since the opening of the Broadbeach office in September 2010. Our personal clearance rate (James Ledgerwood and John Natoli) for the six months from October 2012 to April 2013 is 92%. Buyers now feel comfortable that the market is not going to drop dramatically further and may have in fact bottomed out. Therefore buyers are much more bullish at current market values. Since the start of the year buyers are far more anxious to secure their desired property and that fear of missing out has resulted in a notable increase in strong pre-auction offers and competitive bidding at auctions. We now see buyers making offers with the intent to secure a property prior to auction rather than coming in with low offers to test the intention of the seller. Well-presented properties in prime locations are attracting strong attention from a market of anxious buyers. We have recently analysed all residential house 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. 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. Both the volume and the dollar value of all transactions between January and April 2013 has been near to, or exceeded 50% of the activity in all of 2012. Whilst there was significant sale activity amidst properties under instruction from receivers or mortgagee in possession in 2012, the greater majority of sales activity in 2013 has not been the result of any financial distress. 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 activity in the first quarter of the year show signs 2013 will be a strong year for sellers above $2M. During 2012 there were a total of 39 house and land sales between $2M and $5M and to date this year there have already been 19 sales transacted. A key driver for this activity has been from buyers looking to upgrade. At the $2M - $3.5M level, young professional families - medicos in particular - have been actively relocating from humble abodes into large family homes. They are purchasing without selling their previous home and unlike five years ago are upgrading within their means. This is igniting the $3.5M - $5M range as buyers are leapfrogging into significant river or beach properties, or into the $5M+ range. Buyers are taking the opportunity to secure what they view as ‘the best of the best’ in terms of location and construction. Many sales in 2012 and 2013 took place in Paradise Waters, Isle of Capri and Mermaid Beach. Southport experienced its highest activity in the past ten years, mostly around The Southport School precinct including a record sale of a non-waterfront property in Winchester Street in early 2013. Cronin Island welcomed a number of new owners, albeit as a result of distressed sales. The $2M - $5M prestige market is now moving into a positive environment for both buyers and sellers. The cost of upgrading (purchase/sale price, commission, and stamp duty) is now at its most affordable in almost ten years. Buyers feel confident they are now able to secure the location and home they may have previously viewed as unobtainable.
Top 5 Sales 2012 ($2M -5M) Address
Top 5 Sales Jan - Apr 2013 ($2M -5M) Price
Date
Address
Price
Date
Marseille Court, Sorrento
$4,700,000
Aug 2012
Admiralty Drive, Paradise Waters
$4,582,500
Feb 2013
Via Roma, Isle of Capri
$4,200,000
Oct 2012
Southern Cross Drive, Cronin Island
$3,900,000
Apr 2013
The Promenade, Isle of Capri
$4,000,000
Oct 2012
Commodore Drive, Paradise Waters
$3,750,000
Apr 2013
Albatross Avenue, Mermaid Beach*
$3,925,000
Sep 2012
Commodore Drive, Paradise Waters*
$3,700,000
Mar 2013
Cannes Avenue, Surfers Paradise
$3,888,000
Oct 2012
Admiralty Drive, Paradise Waters
$3,350,000
Apr 2013
Total Sales
39
Total Sales
Total Sales Volume
$111,699,420
Total Sales Volume
Average Price
$2,864,087.69
Average Price
* Vacant Land
* Agents advice
19 $54,073,131 $2,845,954.26
Prestige Sales $5M+ Strong activity has continued above $5M this year starting with the record breaking riverfront sale of 5 McMillan Court, Southport, selling at auction for $9.8M. This sale was highly competitive with ten registered bidders, three of whom competed above $8M. The sale reset the record for a central Gold Coast riverfront property as well as recording the highest sale at auction since the peak of the market in 2008/2009. The activity on the Southport riverfront continued with a Koorong Street sale in the same week for $5,250,000. In April, six registered bidders vied at auction to compete for one of the prime central Gold Coast north-facing riverfront positions at 31-33 The Corso, Isle of Capri, which sold on-site for $6.35M. Two beachfront sales also took place with a double-block in Main Beach selling off market for $5.75M and a stunning home in Mermaid Beach for $5M at auction. The purchasers of all five sales above $5M in the first four-months of 2013 have originated from the Gold Coast. Whilst offshore and interstate buyers have been actively looking at many of these properties, it has been local Gold Coast residents acting on the opportunity to secure prime Gold Coast locations and homes, which in some cases have not been offered for sale in over 30 years. The volume and frequency of these sales has been at a level not seen since the mid 2000s and is in turn opening up the opportunity for high-end property owners to achieve sales above $5M within a reasonable period of time and with considerable competition between purchasers.
Top 5 Sales 2012 ($5M+) Address
Top 5 Sales Jan - Apr 2013 ($5M+) Price
Date
Winchester Street, Southport
$9,500,000
Jul 2012
Main Beach Parade, Main Beach
$8,275,000
Surf Street, Mermaid Beach
Price
Date
McMillan Court, Southport
$9,800,000
Jan 2013
Nov 2012
The Corso, Isle of Capri
$6,350,000
Mar 2013
$7,300,000
Apr 2012
Main Beach Parade, Main Beach
$5,750,000
Feb 2013
Southern Cross Drive, Surfers Paradise
$6,100,000
Jan 2012
Korong Street, Southport
$5,250,000
Jan 2013
Admiralty Drive, Paradise Waters
$5,900,000
Jul 2012
Hedges Avenue, Mermaid Beach
$5,000,000
Jan 2013
Total Sales
5
Address
Total Sales
5
Total Sales Volume
$37,075,000
Total Sales Volume
$27,425,000
Average Price
$7,415,000
Average Price
$5,485,000
Isle of Capri Isle of Capri has experienced considerable growth in the activity of house sales in the first four-months of 2013 compared to the previous full calendar year. In 2012 there were 36 recorded transactions ranging from a low of $464,000 for a dry block, up to $4,200,000 on Main River, with an average sale price of $1,286,847. During the first four-months of 2013 there has been a strong increase in activity with 18 sales, representing 50% of the total 2012 year turnover. The average price over this period was $1,545,613 and represents an increase of 20% over the previous year average. Activity below $1M matched the turnover above $1M with nine sales each. Above $2M, 13 properties changed hands between January 2012 and April 2013 with the highest price sale recorded in March of this year at $6,350,000. Seven properties sold at this level during the entire year of 2012 whilst six sales have already been recorded in the first four months of 2013. The correction of property prices over the past year on the Isle of Capri has provided buyers the opportunity to secure waterfront property well below $1M. This has given many buyers the opportunity to enter a market that was once perceived to be beyond them. The outlook for Isle of Capri in 2013 and beyond is very positive as we believe momentum in the suburb will continue as activity in the Central Gold Coast market gains traction in a historically low interest rate environment. A significant driving factor that will assist the future growth of the area is the current redevelopment of the Capri shopping centre to be renamed ‘Capri on Via Roma’ and set for completion in October of this year.
Top 5 Sales 2012 Address
Top 5 Sales Jan - Apr 2013 Price
Date
Address
Price
Date
Via Roma, Isle of Capri
$4,200,000
Oct 2012
The Corso, Isle of Capri
$6,350,000
Mar 2013
The Promenade, Isle of Capri
$4,000,000
Oct 2012
Naples Avenue, Isle of Capri
$3,150,000
Feb 2013
The Promenade, Isle of Capri
$3,050,000
Apr 2012
Gibraltar Drive, Isle of Capri
$3,020,000
Feb 2013
Naples Avenue, Isle of Capri
$3,000,000
Jan 2012
Amalfi, Isle of Capri
$2,500,000
Feb 2013
The Promenade, Isle of Capri
$2,600,000
Mar 2012
The Lido, Isle of Capri
$2,500,000
Mar 2013
Total Sales Total Sales Volume Average Price
36 $46,326,500 $1,286,847.22
Total Sales
18
Total Sales Volume
$27,821,050*
Average Price
$1,545,613.89
* 3 sale prices unavailable
Paradise Waters Throughout the 2000s Paradise Waters experienced some of the strongest price growth on the Central Gold Coast. Since 2008 the waterfront suburb has seen significant repricing, driven largely by distressed sales. January to April 2013 has finally started to see a return of aspirational buyers anxious to acquire some of the best waterfront real estate in the central Gold Coast. The Light Rail construction, the focus of coffee shop conversation for Paradise Waters residents, may have made commuting a little more frustrating however it has not stopped properties changing hands. During 2012 there were a total of 23 sales, the lowest price being $830,000 for 29 Admiralty Drive. The majority of sales (12) were in the $1M to $2M range for canal front homes. In contrast, of the 11 sales in 2013 the strongest activity has been on the riverfront with eight sales above $2M, five of which were above $3M. 2012 saw the same number (eight) of $2M+ sales over the entire year. There has clearly been a shift in confidence in Paradise Waters. Our outlook for the rest of 2013 is positive. We expect competition amongst buyers to continue to gain momentum as a result of a low number of homes for sale in Paradise Waters and competitive bidding at auctions. Aspirational purchasers, who years ago never believed they could afford to purchase in Paradise Waters, will represent a large portion of the market over the next 12 months as they capitalise on affordable prices and the RBA cash rate at record lows. This is assisting both buyers and sellers. Sellers with realistic expectations in 2013 who target aspirational purchasers may find the buyers’ ‘fear of missing out’ will attribute to strong competition for their properties. All in all it looks like Paradise Waters has turned the corner towards recovery in 2013 and beyond.
Top 5 Sales 2012 Address
Top 5 Sales Jan - Apr 2013 Price
Date
Admiralty Drive, Paradise Waters
$5,900,000
Jul 2012
Admiralty Drive, Paradise Waters
$3,700,000
Admiralty Drive, Paradise Waters
Price
Date
Admiralty Drive, Paradise Waters
$4,582,500
Feb 2013
Jun 2012
Commodore Drive, Paradise Waters
$3,750,000
Apr 2013
$3,500,000
Mar 2012
Commodore Drive, Paradise Waters
$3,700,000*
Mar 2013
Norseman Court, Paradise Waters
$2,780,000
Aug 2012
Admiralty Drive, Paradise Waters
$3,350,000
Apr 2013
Admiralty Drive, Paradise Waters
$2,300,000
Jul 2012
Seafarer Court, Paradise Waters
$3,250,000
Mar 2013
Total Sales Total Sales Volume Average Price
23 $43,985,920 $1,912,431.30
Address
Total Sales Total Sales Volume Average Price * Agents advice
11 $29,987,500 $2,726,136.36
Recent sales by John Natoli and James Ledgerwood
SOLD 5 McMillan Court Southport
SOLD $9,800,000
5-7 Surf Street Mermaid Beach
$2,600,000
25 Cylinders Drive Kingscliff
$1,580,000
48 Buccaneer Way Coomera Waters
$1,000,000
5326 Marine Drive North Sanctuary Cove
SOLD 13A Ocean View Easement Mermaid Beach
$2,250,000
21-23 Winchester Street Southport
$1,150,000
215 Monaco Street Broadbeach Waters
$785,000
7409 Ellensbrook Drive Hope Island Resort
SOLD $6,350,000
23 The Lido Isle of Capri
$2,150,000
110 Crescent Avenue Hope Island
$1,100,000
5286 Marine Drive North Sanctuary Cove
SOLD
SOLD
SOLD 12 Portobello Drive Mermaid Waters
31-33 The Corso Isle of Capri
SOLD
SOLD 26 Buccaneer Court Paradise Waters
SOLD $7,300,000
SOLD
SOLD
SOLD
$2,500,000
$1,660,000
SOLD
SOLD
$1,082,000
SOLD $671,000
8093 Riverside Drive Sanctuary Cove
$490,000
Published on Jun 14, 2013
john natoli and james ledgerwood 2013 prestige report
