Off-the-plan apartment sales are showing no sign of slowing down and are making a quick comeback as booming markets improve prospects that buying now will deliver healthy returns in such a buoyant market by the time of completion.
Demand for luxury apartments is being driven by downsizers, cashed-up empty nesters, and interstate buyers looking for a holiday or retirement home.
“Off-the-plan selling was certainly happening this time last year, but for several months now, stock is so low that new developments are providing buyers great choice and price options. As a result, investors have a strong appetite for off-the-plan because they can lock in a property at today’s price then settle or sell when the building is complete and see fantastic returns on their investment,” says Kollosche agent Rob Lamb.
A perfect example was the sale at 2902/272 Hedges Ave, Mermaid Beach, for $3,900,000, where the luxury half-floor apartment went for almost $600,000 more than the vendor paid off the plan over 12 months ago. “We’ve always had consistent off-the-plan sales, but right now, we are noticing buyers are more than willing to commit to a quality building under construction and wait until completion rather than settle on an established apartment in an older building that might not be exactly what they want,” says Rob.
Developers have also reacted to the ‘new market’ and are now producing properties for which they know there is high demand. “From 2001 to 2007, there was a focus on developing large resort-style, 30+ level high-rise buildings with a high ratio of smaller 80sqm -120sqm investment style 1 and 2 bedroom ‘holiday’ apartments catering mainly to interstate and foreign investors purchasing as discretionary assets.”
Rob believes the switch is now to construct boutique residential-style buildings. Those with a smaller footprint catering primarily to owner-occupiers that desire privacy, security, larger 200sqm – 320sqm + floorplans, quality appliances and high-end finishes, dedicated storage and car parking that compliment permanent living. “In future, the Australian dream of owning a nice home might just change to owning an amazing residential lifestyle apartment,” he says.
If you are struggling to navigate the apartment market or want to know the best opportunities available or coming up, Kollosche is the Gold Coast’s leading prestige property agency with a selection of luxury residential real estate across the city.