Prestige Property Drivers

July 7 2022

As Kollosche wraps up a record financial year in real estate, Managing Director and Selling Principal Michael Kollosche considers those factors driving the Gold Coast’s prestige property market.
Prestige Property Drivers

With the 2021-2022 financial year now behind us, the final numbers shed light on just how monumental this period has been for Gold Coast real estate.

Kollosche recorded our best year yet –our team welcomed 591 families into new homes with total unconditional property sales valued at $1,947,446,442.

Of the top 10 properties sold by Kollosche between 1 July 2021 and 30 June 2022, each sold for prices ranging from $12,000,000 and upwards.

Our top sale for the year came in May With the $21,000,000 sale of 159 Hedges Avenue, Mermaid Beach following off-market negotiations handled by Harry Kakavas and myself.

159 Hedges Avenue, Mermaid Beach | Kollosche

Harry and I also handled the $19,000,000 sale of the penthouse on the so-called Four Corners site at 3519 Main Beach Parade, Main Beach in April.

Another major sale in April was the absolute beachfront house dubbed ‘Mi Casa’ at 61 Albatross Avenue, Mermaid Beach which sold off-market for $16,500,000.

Kollosche’s average sale price for the year was $3,256,599 and our team recorded an outstanding auction clearance rate of 93%.

Prestige Property Leader

Exceptional price growth over the year to March saw the Gold Coast crowned Australia’s best performing prestige property market.

According to Knight Frank’s Prime International Residential Index, luxury property price growth on the Gold Coast overtook Sydney with a 3.5% price spurt in the March quarter.

On the global prestige property stage, the Gold Coast shot from 12th position to number 7 following spectacular prices growth of up to 60% in some suburbs last year. Dubai, Miami and Toronto had the fastest growing prices in the 12 months to Q1 2022.

Knight Frank residential researchers predict that the imbalance between demand and supply will see Gold Coast prestige property prices increase by a further 8% this year.

Prestige Property Drivers | Kollosche

Prime Stock is Scarce

The scarcity of prestige homes for sale is a key driver behind the intense competition we’ve seen among buyers this past year, and the premium prices that followed.

With demand for prime property so high and supply so low, we’ve seen a ripple effect across both blue ribbon and bridesmaid suburbs.

Fierce competition for prime properties has largely played out in the auction arena and also in multiple offer scenarios taking place before an auction even eventuates.

181 Jefferson Lane, Palm Beach | Kollosche

A buyer swooped on a tri-level beach front home at 181 Jefferson Lane, Palm Beach being marketed by Troy Dowker in January when $8,275,000 was enough to convince the vendor to call off the auction.

A brand new designer build at 150 Sir Bruce Boulevard, Benowa Waters known as ‘The Lakehouse’ never made it to auction either, with Jamie Harrison securing a suburb record price of $6,335,000 within seven days of listing in April.

150 Sir Bruce Small Boulevard, Benowa Waters | Kollosche

A Lust for Lifestyle

The desire for lifestyle homes has also driven competition among ultra-wealthy Australian buyers for large luxury waterfront plots and super size apartments with a roof terrace or balcony.

Downsizers have also played a significant role in record prices being achieved for premium penthouse apartments in boutique buildings.

4/142 Marine Parade, Miami | Kollosche

Eoghan Murphy and myself marketed a modern two-level Miami penthouse located opposite the sand and surf at 4/142 Marine Parade in April. Six bidders pushed the price to $8,125,000, netting the vendor a tidy gain of $2,375,000 in 17 months.

The Ultra Penthouse in Broadbeach changed hands for $7,400,000 at auction in June, while Harry Kakavas and myself found buyers for two full-floor apartments inside Sea, Main Beach of $7,500,000 and $7,800,000 a piece in December and May.

3001 & 3002 Ultra Penthouse/14 George Avenue, Broadbeach | Kollosche

Cashed Up Buyers

Another factor driving the prestige property market over the past year is growing wealth.

The population of ultra-high-net-worth individuals – those with a net worth of $40 million or more – has reportedly supported the surge in prime real estate prices.

Wealthy Australian buyers have more cash to splash than the global average – in 2021 the country’s population of ultra-high-net-worth individuals grew by 10% to 20,800 people.

There were some 5 million new millionaires minted around the world in 2021 and prime property has proven a popular inflation hedge and a safe tool for wealth creation.

With the world having opened up to travel and immigration once more, expat buyers are also reappearing for a slice of the action at the top end of town.

Late last month, an expat buyer based in the UK claimed the keys to a glamorous beach house at 662 Pacific Parade opposite Tugun’s iconic Flat Rock Beach with $9,100,000 paid at auction.

662 Pacific Parade, Tugun | Kollosche

Knowledge is King

Market conditions continue to evolve as we move into a new financial year and Kollosche agents are working closely with home owners to share valuable industry knowledge and discuss strategies to achieve premium pricing.

Knowledge is the key to making confident decisions in any market. If our team can assist you with the right advice this month, please do reach out for a conversation.

Subscribe to Kollosche news