John Natoli and James Ledgerwood | Prestige Report 2013/14 | Central Gold Coast

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