The Gold Coast’s boutique apartment market is experiencing an explosive upswing, driven by soaring demand for high-end living.

This surge is particularly evident in the sale of apartments priced over $1,000,000, reflecting the city’s growing allure for luxury real estate homebuyers and investors.

However, this growing demand is counterbalanced by a critical supply shortage, exacerbated by rising construction costs and labour shortages. These factors are driving the shift towards smaller, boutique developments as developers adapt to these market challenges.

These are among the key trends unveiled inside the Boutique Beachside Apartment Market Outlook, released this month by Kollosche in collaboration with independent housing market analyst Michael Matusik.

The report offers an in-depth look at the high-end apartment market across the Gold Coast’s premier beachside suburbs, highlighting sales trends, supply challenges, and buyer demographics.

Download the full report

KEY TAKEAWAYS

Booming Sales in Luxury Apartments

Over 2,000 apartments priced above $1 million were sold in the past year, demonstrating a robust demand for high-end living on the Gold Coast. This segment has experienced a fourfold increase over the past five years.

High-Value Transactions

The market saw 500 sales exceeding $2 million, with around 190 of these transactions surpassing $3 million. Suburbs like Surfers Paradise and Broadbeach are leading in these high-value sales.

Supply Shortages

As of June 2024, only 450 high-end attached dwellings were available for sale, equating to less than three months’ supply. This critical shortage presents significant challenges for buyers and investors.

Limited New Developments

Of the available high-end apartments and townhouses, only 110 are new constructions. The majority are resales, indicating a slow pace of new developments.

Rising Construction Costs

Building a four or five-star quality new apartment complex now requires apartments to sell for between $15,000/m² and $17,500/m² gross. High construction costs are a major barrier to new projects.

Labour Shortages 

The construction sector is facing a shortage of skilled labour, with many tier one builders shifting to more lucrative government and civil projects. Tier two builders are also deterred by union pressures.

Boutique Developments

Developers are increasingly focusing on smaller, boutique projects as a response to rising costs and labour shortages. These developments are more manageable and less risky under current market conditions.

Buyer Demographics

There is an even split between owner-occupiers and investors purchasing high-end apartments. Most buyers are from interstate, particularly New South Wales and Victoria, with a smaller portion coming from the Gold Coast and Queensland.

Overseas Interest

Only 10 top-end sales were to international buyers last year. However, this trend may change as international travel and relocation become more feasible post-pandemic.

Future Outlook

Boutique developments are expected to dominate the Gold Coast’s new apartment landscape. These exclusive projects cater to the discerning tastes of luxury buyers, ensuring the Gold Coast remains a hotspot for premium real estate investment.

The Boutique Beachside Apartment Market Outlook provides essential insights for anyone involved in the Gold Coast property market. Understanding these key trends and challenges can help investors, developers, and buyers make informed decisions and capitalise on the opportunities within this dynamic sector.

For a deeper dive, download the full report to explore these insights in detail and stay ahead in one of Australia’s most exciting real estate markets.