In the News
Hope returns to market
Hope Island is emerging as one to watch as unit sales soar and one development chalks up 28 unconditional contracts in just over eight weeks of release at full list price.
Oliver Hume Queensland state research manager Josh Brown said as receivers become more prepared to meet the market, apartment sales were increasing as buyers realized the value of these developments.
According to the latest research from the Oliver Hume research arm, Azzura Greens at Hope Island Resort has led the way in terms of recent sales.
There were 36 unconditional sales accounted for over the Spring season at Hope Island – the highest volume of sales on the Gold Coast.
The strongest results were posted in Azzura Greens which attracted 28 sales. This was followed by Marina Quays with five.
“The receiver has taken over the project and met the market in terms of price,” Mr Brown said. “It has had a lot of interest from investors.
“There’s a lot of Hope Island hype as it is an evolving precinct with marinas, infrastructure and amenities, as receivers begin to meet the market in price that creates interest from consumers.”
REIQ zone chairman John Newlands said there had been a “lot of discounting” in the Hope Island area. “Projects have run into trouble and are in the hands of receivers. Now many of these apartments are well priced and have plenty of scope for capital gain,” he said.
“It’s also possible they are popular because of the low body corporate in comparison to other areas. And, of course, lifestyle draws people and there are golf courses, shops and the broadwater all close by.”
According to the Oliver Hume Research report, current market conditions had placed more emphasis on lifestyle locations close to marinas and golf course and properties with stronger investment income – a counter trend for the Gold Coast which historically had been driven by beachfront locations.
The past 24 months has seen more than 160 receiver-appointed apartments sold. When equating this number to a median price of $360,000 (over a six-month period) it estimated sales of new apartments in Hope Island was now nudging almost $60 million.
While once reportedly the most affected area on the Coast by the GFC, the Northshore’s new apartment sales has caused the most recent figures to spike strongly.
Mr Brown said there was a strong indication that a price floor had been reached for apartments at Hope Island – in stark contrast to past periods where heavy discounting was required to motivate purchasers.
“This can be seen by the recent sales success of apartments, together with the $17m sale of the Hope Island Town Centre site to Lang Walker, settlement of Fairway Island and the Harbourside Quays land component sale completed by the Bank of Scotland.”
It is anticipated current apartment supply will service demand for 2.3 years in the Northern Fringe Precinct. Azzura Greens, Marina Quays and Illanah Aqua will likely be removed from the active projects after the next reporting season as they approach completion of sales.
The report identified that as the gap between sales and stock closes, the median price has stabilized at $379,000.
This is slightly above the six months to September 2010 figure, which reached $371,000 and is the only increase in median price over the last 12 months recorded for Gold Coast.
In the general apartment market, the bulk of sales occurred within $300,000 to $399,999 at 41 per cent.
The premium $900,000 plus market in the Northshore Precinct saw 4 per cent of sales transact above this level.
To view the newspaper article please click here: Hope returns to market
Author: Gold Coast Bulletin Property, Page 2
Posted: 20, Dec 2011
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