No sign of slowing down in buyers' blitz
Coastal and lifestyle suburbs, including luxury apartments, are showing no signs of easing up, according to developers and buyers’ agents.
The Australian Bureau of Statistics estimates the value of residential land has increased from $4.9 trillion to $6.6 trillion in the 2021 financial year, with NSW residential land value to hit $2.67 trillion alone.
These raw figures are translating into a rich bounty for developers capitalising on a seemingly unquenchable demand from buyers looking for coastal and lifestyle properties and apartments.
According to BuyersBuyers co-founder Pete Wargent, the demand for land for residential property purposes is at an historic high.
"We expect to see a further increase in land values, and consequently, free-standing houses are highly likely to enjoy strong capital growth in the long term, in most of the established areas and landlocked suburbs in the country.”
“The recent strength in land values has been driven primarily by coastal and lifestyle locations, as wealth as prime harbourside suburbs, as buyers have used flexible working arrangements and sought more space over the past two years.
“We expect that the demand for land will remain strong, and land values are highly likely to deliver strong price increases, particularly in the long term.”
Doron Peleg, CEO of BuyersBuyers, said the growth in Australia’s population has been a key factor in rising land values, alongside structurally lower interest rates and an increase in Australian household wealth.
“Property will continue to go through cycles but well-located residential land in cities such as Sydney and the desirable coastal suburbs of New South Wales will still be in extremely high demand 40 years from now, hence its enduring popularity," Mr Wargent said.
Having entered the market a mere four weeks ago, $75 million boutique apartment building PAMA Casuarina has sold 65 per cent of its premises already, reaching $45 million in sales.
Casaurina Beach is 40 minutes north of Byron Bay in Northern NSW and has high buyer appeal due to the location and the idyllic design and quality build of the development, with 47 two to four bedroom residences across four storeys within a tropical landscaped grounds and resort-style amenities.
TOTAL Property Group Managing Director Adrian Parsons said a wide variety of buyers were taking up the opportunity to own an apartment due to the growing popularity of Casuarina Beach and the limited supply of quality owner-occupier apartments available between Byron Bay and Kingscliff.
He said local purchasers were the first to secure their new apartments, with nine selling to buyers living within 10 kilometres of the development site.
“Local buyers were the first to purchase as they are fully aware there is a limited opportunity to own a luxury apartment in Northern NSW, with most planning to downsize from their larger houses to a low maintenance lifestyle and exclusive access to resort-style amenities at this popular beachside location.
“A significant proportion of buyers are from the Gold Coast and Brisbane, and apartments have also been selling to southern buyers, with a four-bedder snapped up by a Sydney family for a holiday home, and buyers planning to either relocate and live permanently at PAMA or use their apartment for a holiday home or investment property.
“Rising demand for property in Northern NSW and the limited stock available has presented a unique investment opportunity and buyers have acted quickly to avoid missing out.”
The building’s common areas and its landscaped grounds will be powered by accredited sources under the Federal Government’s National GreenPower Initiative, meaning that all energy requirements will come from 100 per cent renewable sources. Every apartment purchaser is given the option to also connect to GreenPower if they choose to further reduce the carbon footprint of the development.
A 40kw solar system will be installed on the rooftop to supply renewable energy back into the grid and contribute to the body corporate facilities, offsetting costs for air conditioning and lighting of common areas as well as the running and heating of the swimming pool.
The record sales didn’t stop at the northern end of the state, with Brisbane and Gold Coast buyers on a spending spree at Iris Capital’s $350 million Queensgate project in Potts Point. It settled $20 million in sales during the traditionally quiet holiday period.
As a collection of five buildings combining classic heritage architecture with premium residences amid a cosmopolitan lifestyle, total sales have now surpassed $121 million just a month since the project’s release.
Iris Capital has sold almost half of the 48 apartments planned for Queensgate, including a penthouse secured for $16 million. The sales momentum highlights the prized status of the development, which brings into focus the revitalisation of the inner-Sydney suburb.
“Local buyers were among the first to take a foothold after the official launch, but now we’re seeing buyers from all over Australia converging, with many from Brisbane and the Gold Coast snapping up apartments during the holiday period,” said Iris Capital CEO Sam Arnaout.
Ben Stewart senior director, CBRE Residential Projects said the sales were remarkable given the launch during the quiet Christmas period.
Local buyers have flocked to the latest Gold Coast development by Melbourne developer Hirsch & Faigen, Yves at Mermaid Beach securing more than $80 million in sales in the first three weeks of the project’s release.
The $200m development on the doorstep of the Gold Coast’s sought-after millionaire’s row is attracting Brisbane and Gold Coast downsizers, making up 70% of the early sales. Driving one of the most successful project launches in recent months.
“The demand we’ve experienced in recent weeks shows the market remains strong despite the latest Covid outbreaks,” said Hirsch & Faigen's Sales Director Matt George.
“Yves is generating interest from a broad range of buyers looking for the lifestyle afforded by this exclusive pocket of Mermaid Beach, just a stroll away from Pacific Fair and the Broadbeach entertainment precinct. The Gold Coast is also still proving to be hugely popular with investors.”
The highest price paid for an apartment in Yves is $2.995 million for a sub-penthouse, bought by a Melbourne investor, with buyers from Sydney and Melbourne accounted for 20 per cent and 10 per cent respectively of the recent sales.
“Brisbane buyers are predominantly buying a second property while Gold Coast buyers are either downsizing or first-home buyers,” said Mr George.
Yves, designed by award-winning architect Rothelowman, brings to the market 145 apartments across 24 levels, complete with an exclusive suite of amenities for residents. This includes a 20-metre lap pool, kids’ garden, fully equipped gym and yoga studio, wellness spa and sauna as well as a private rooftop sky lounge and wine bar.