John Natoli Prestige Report 2015/16

Central Gold Coast Prestige Report 2015/16

BY JOHN NATOLI

John Natoli has had a truly exceptional career. A fully licensed real estate agent, John started work in the property sector in 1993. He soon established a reputation for excellence.

Indeed, just two years after beginning his career he was named the REIQ Gold Coast Salesperson of the Year. This was to be the first of many awards.

Arguably, John’s stature within the sector is best reflected by the fact that he was the first Australian real estate agent ever to become a member of the international prestige property network, Who’s Who in Luxury Real Estate. Membership of this network is only extended to those who have demonstrated exceptional knowledge and skill in relation to prestige properties in a given market.

Over the past 23 years John has gained an intimate understanding of central Gold Coast prestige real estate and as a result is continually sought out as a source of expert opinion when it comes to media analysis of this unique market.

While John’s curriculum vitae is impressive, it is not what attracts the bulk of his clients. John has an outstanding reputation as an agent with highly developed communication skills. John is well known for the care he takes in ascertaining his clients’ objectives. Courteous and engaging, John is frequently described by past clients as a “listener, rather than a talker.”

M 0414 453 221 E johnnatoli@mcgrath.com.au

Smiles growing wider as confidence beams In the 1989 American fantasy-drama film ‘Field of Dreams’, farmer Ray Kinsella hears a voice whispering “If you build it, he will come” and so Ray ploughs up his corn field to build a baseball field.

On 11 November 2011, the Gold Coast won its bid to host the 2018 Commonwealth Games. Ever since, the Gold Coast, supported by QLD State and Federal funding, has embarked on an infrastructure development campaign that is now revitalising our city and drawing countless investors to the Gold Coast in search of opportunity.

Cranes are back in the skies, roadworks are prolific and major development programmes surround us. Significant development includes Star Entertainment’s $850M development on its existing Jupiter’s Casino site whilst across the road AMP has embarked on a $670M transformation of Pacific Fair intent on creating the best centre in Australia.

In Surfers Paradise Wanda Ridong have already commenced the $1B Jewel three-tower high rise development on the beachfront that will have 500 apartments, 171 hotel rooms and dozens of luxury retail precincts when completed.

With all this commercial development the residential housing market is prospering at the same pace. Locals are ever more confident in the expectation of the value of their homes whilst buyers have the confidence to meet these new benchmark values.

For many years, since 2009, exceeding $10M for a prestige home remained beyond reach however in the latter half of FY15/16 the city had 4 properties transact above $10M. The highest price achieved was $15.5M on the Isle of Capri establishing an all-time record price for a riverfront home.

This was followed by an $11M sale on Cronin Island.

The beachfront also shared in the $10M+ bonanza with a home on Hedges Avenue selling for $13.25M and another on Albatross Avenue selling for $11M. Capital growth was strong in many areas. Some of the highlights include Mermaid Beach with an average house price growth of 25.5% in the 12 month period to February 2016 and Isle of Capri enjoying 28.6% growth in FY15/16.

Inside our Prestige Report we have again 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 Main Beach from Main Beach in the Southport north to Nobby Beach Paradise Waters in the south.

Bundall Surfers Paradise Isle of Capri Broadbeach Waters

Mermaid Waters

The information in this report is being provided by CoreLogic RP Data. Its accuracy cannot be guaranteed. Parties should rely on their own enquires and McGrath will not be liable for error or admissions herein.

Broadbeach

Mermaid Beach

Gold Coast Prestige Sales $2M - $5M The Prestige market sector between $2M - $5M continues at a steady pace with transaction numbers growing 19.6% from the previous year up to a total of 55 sales in FY15/16. The average price for the year was a little less than 1% down to $2,902,000 and the average days on market was 117 days.

Sales activity was considerably strong through most of the year, however the market did slow considerably in the last quarter of FY16 as Australians were sent to the polling booths for a national election. At the frustration of many prospective buyers, there was a distinct shortage of available properties for sale between April to June. It is expected that this short fall in listings will pick up in Spring, as was the case after the 2013 elections.

The top performing suburb throughout the year was Paradise Waters with 12 sales – up on the previous years of 11 sales, with 7 sales transacted above $3M. Broadbeach Waters recorded 11 sales with 3 sales above $3M and Isle of Capri secured 10 sales of which 3 sales transacted in the $3M range.

Bundall/Sorrento saw a significant improvement through the year with a strong performance achieving 9 sales between $2M - $5M compared to only 1 sale of $2,250,000 in the previous FY14/15. 3 Sales transacted above $3m.

The outlook for the year ahead for houses above $2M continues to be very positive. It is expected that ‘dry’ beachside properties beachside of the highway in Mermaid Beach will perform strongly in this sector as the median price in Mermaid Beach now sits at $1.7M as of February 2016.

The information in this report is being provided by CoreLogic RP Data. Its accuracy cannot be guaranteed. Parties should rely on their own enquires and McGrath will not be liable for error or admissions herein.

The Numbers

Number of sales

55 / +19.6%

Most active suburb

Paradise Waters

Average days on market

117

Most Active Suburbs

Address

FY15/16

FY14/15

FY13/14

Broadbeach Waters

11

13

7

Paradise Waters Isle of Capri

12 10

11 7

10 3

Price

Date

Admiralty Drive, Paradise Waters

$4,900,000

Dec-15

59 Garfield Terrace, Surfers Paradise

$4,860,000

Feb-16

Hedges Avenue, Mermaid Beach

$4,750,000

Apr-16

Admiralty Drive, Paradise Waters

$4,550,000

Feb-16

Admiralty Drive, Paradise Waters

$4,500,000

Jan-16

Top 5 Sales 2015 - 2016 ($2M - $5M)

Address

Top 5 Sales 2014 - 2015 ($2M - $5M)

Address

Price

Date

Albatross Avenue, Mermaid Beach

$4,500,000

June-15

Main Beach Parade, Main Beach

$4,200,000

Aug-14

Monaco Street, Broadbeach Waters

$4,150,000

Aug-14

Albatross Avenue, Mermaid Beach

$4,100,000

Mar-15

Buccaneer Court, Paradise Waters

$4,025,000

Oct-14

Gold Coast Prestige Sales $5M+ Sales above $5M continue to increase over the past few years with 9 sales transacting in FY15/16 compared to 7 the previous year. The average days on market were 160 days with a total dollar volume of $79.35M and a substantial increase in the average sale price to $8,816,667 – up 33.24%.

Of the 9 sales, 5 were purchased by Chinese buyers. This year there was a notable shift in interest to the river with 4 sales above $5M, and 2 sales above the previous all-time riverfront record set in 2013 at $9.8M. The new record this year is $15.5M on the Isle of Capri with an $11M transaction on Cronin Island (Surfers Paradise). The Isle of Capri property sits across 4 riverfront allotments on a total of 2,197m2 and the Cronin Island property sits across 3 allotments with a total of 2,318m2.

It was 2009 when we last saw a $10M sale in the central prestige market. This price has been exceeded in FY15/16 with 3 sales $15.5M, $13.25M and $11M. Reports indicate a 4th sale at $11M on the beachfront at Mermaid Beach however this sale has not yet shown as a settled sale.

Of the 9 sales, 5 were marketed by Private Treaty, 1 property was marketed by Auction, 1 property was marketed by Expressions of Interest and 2 sales were off-market transactions. Interestingly there was no sale above $5M in Paradise Waters in FY15/16 compared to 1 sale in FY13/14 and 1 sale in FY14/15.

The Numbers

Number of sales

9 / +28.6%

Average sale

$8,816,667

Most active suburb

Mermaid Beach

Most Active Suburb

Address

FY15/16

FY14/15

Mermaid Beach

3

Mermaid Beach

4

Isle of Capri

2

Paradise Waters

2

Main Beach

2

Broadbeach Waters

1

Top 5 Sales FY 15/16 $5M+

Address

Price

Date

The Corso, Isle of Capri

$15,500,000

Jun-16

Hedges Avenue, Mermaid Beach

$13,250,000

Mar-16

Southern Cross Drive, Cronin Island

$11,000,000

May-16

Main Beach Parade, Main Beach

$8,200,000

Mar-16

River Crescent, Broadbeach Waters

$7,000,000

Sept-16

Price

Date

$8,420,000

Jan-15

Top 5 Sales FY 14/15 $5M+

Address Surf Street, Mermaid Beach

The information in this report is being provided by CoreLogic RP Data. Its accuracy cannot be guaranteed. Parties should rely on their own enquires and McGrath will not be liable for error or admissions herein.

Albatross Avenue, Mermaid Beach

$8,400,000

Apr-15

Commodore Drive, Paradise Waters

$6,600,000

Mar-15

Main Beach Parade, Main Beach

$6,500,000

Jun-15

Monaco Street, Broadbeach Waters

$5,800,000

Jan-15

Isle of Capri - FY15/16 Once again Isle of Capri enjoyed a stellar performance in comparison to neighbouring communities within the central Gold Coast prestige market. The impact of local and nearby infrastructure development over the past 2-3 years such as the Capri on Via Roma shopping centre and the G:Link lightrail transport system, has been a boon to keep locals on Isle of Capri whilst attracting new residents into the area.

This is evidenced by a decrease in the number of transactions throughout the year of 59 sales, down 10.6% from the previous year of 66 transactions. However the total sales volume increased by 15% to $100,535,500 and the average price for a home on the Isle of Capri grew a staggering 28.64% to $1,703,991.

Isle of Capri sellers now have higher expectations for the value of their homes and the buyers have developed new confidence to meet these expectations. A case study in point is the very recent sale of 57 The Corso, Isle of Capri. The large home built across 4 adjoining riverfront allotments with a combined total of 2,197m2 has set a new all-time riverfront record sale price of $15,500,000. This is a 442.86% increase on the previous year’s high of $3,500,000 achieved for a near new home in FY14/15 also located on The Corso.

An entry level home on the Isle of Capri this year rose $42,000 to $672,000. This year infrastructure developement will provide improved access onto the Isle of Capri for traffic heading north along Bundall Road.

The information in this report is being provided by CoreLogic RP Data. Its accuracy cannot be guaranteed. Parties should rely on their own enquires and McGrath will not be liable for error or admissions herein.

The Numbers

Average house price

$1,703,991 / +28.6%

Average DOM

83 / +31.7%

Number of sales

59 / -10.6%

Top sale

$15,500,000

Entry level sale:

$672,000

What do buyers love about Isle of Capri?

Capri on Via Roma Shopping Centre, upmarket dining, preschool, primary school, sports grounds, parks, stroll to patrolled beaches and the lightrail.

Top 5 Sales 2015 - 2016

Address

Price

Date

The Corso

$15,500,000

Jun-16

Naples Avenue

$5,650,000

Nov-15

Gibraltar Drive

$3,740,000

Apr-16

Naples Avenue

$3,700,000

May-16

Etna Street

$3,000,000

Aug-15

Price

Date

The Corso

$3,500,000

Nov-14

Naples Avenue

$3,480,000

Apr-15

Amalfi Drive

$3,300,000

Mar-15

The Promenade

$3,150,000

Jul-14

Amalfi Drive

$2,600,000

Jul-14

Top 5 Sales 2014 - 2015

Address

Gold Coast Absolute Beachfront – Main Beach to Palm Beach The surf, sun and the sand is the very essence of why the Gold Coast has developed into Australia’s leading tourism destination and living on the beachfront is a highly desired aspiration for those who wish to live the lifestyle on a permanent basis or as a regular holiday destination.

This year I extend the report to include Palm Beach and only houses and villa/duplex residences are included. Palm Beach has seen significant growth in the past year and is now one of the Gold Coast’s hottest suburbs and the strongest performer in the sale of absolute beachfront property with 11 sales in FY15/16.

The average price of these sales is $2,807,727 and the average days on market is 45 days. The highest sale is $3,500,000 for a home located on 407m2 and the entry level sale is $1,900,000 for an original cottage sitting on 412m2.

Further north there were 5 sales in Mermaid Beach. 4 sales occurred along Hedges Avenue starting at $4,082,000 for a cottage on 450m2 through to the highest sale of $13,250,000 for a substantial multi-level home on 564m2. Only one property sold on Albatross Avenue – a two level home on 810m2 selling for $6,300,000.

Surfers Paradise had 1 sale at $4,860,000 for a two level home on a 607m2 corner block. This year Main Beach produced 2 sales, one of which was an older two level home located on 792m2 and selling for $8,200,000. A block of ‘four only’ apartments sitting on 617m2 land area sold at auction for $6,500,000.

The information in this report is being provided by CoreLogic RP Data. Its accuracy cannot be guaranteed. Parties should rely on their own enquires and McGrath will not be liable for error or admissions herein.

Main Beach to Mermaid Beach

Average house price

$6,755,250 / +31.7%

Number of sales

8 / -33%

Top sale

$13,250,000

Entry level sale

$4,082,000

Average DOM

74

Top 3 Sales 2015 - 2016

Address

Price

Date

$13,250,000

Mar-16

Main Beach Parade, Main Beach

$8,200,000

Mar-16

Main Beach Parade, Main Beach

$6,500,000

Feb-16

Hedges Avenue, Mermaid Beach

Palm Beach

Average house price

$2,807,727 / +1.2%

Number of sales

11 / +22%

Top sale

$3,500,000

Entry level sale

$1,900,000

Average DOM

45

Top 3 Sales 2015 - 2016

Address

Price

Date

149 Jefferson Lane

$3,500,000

Aug-15

141 Jefferson Lane

$3,300,000

Jun-16

504 The Esplanade

$3,090,000

Oct-15

Featured Settled Sales in FY15/16

Isle of Capri 33 Naples Avenue

SOLD $5,650,000

Palm Beach 1A Fourth Avenue

SOLD $3,060,000

Broadbeach Waters 167 Monaco Street

SOLD $1,925,000

Mermaid Beach 93 Hedges Avenue

Palm Beach 237 Jefferson Lane

Paradise Waters 6 Viking Court

SOLD $5,600,000

SOLD $2,550,000

SOLD $1,907,500

Mermaid Beach 71 Hedges Avenue

Runaway Bay

SOLD $4,750,000

SOLD

24 Shearwater Esplanade $2,200,000

Hope Island 110 Crescent Avenue

SOLD $1,650,000

Palm Beach 504 The Esplanade

SOLD $3,090,000

Clear Island Waters 12 San Simeon Drive

Sovereign Islands 12 Regents Court

SOLD

$2,000,000

SOLD Undisclosed