Tower units show high-rising gains

Surfers Paradise high-rise apartments resales have boomed in wake of the rejuvenation of the tourist hub, according to a recent study.
A nine year analysis of high-rise resales in the precinct has shown continuing annual growth of 7.8 per cent, rising to 14.6 per cent in 2004, pointing up the positive impact of the rejuvenation

The research, complied by PRD nationwide Gold Coast Corporate office reasear5ch manager Lynda Campbell, covered 7622 settled resales from January 1997 to December 2005.

Antique, Ultima and Trilogy tower C, all completed within the past 12 months, were excluded from the study as was Emerald where no units have changed hands since its 2003 completion and 1 where sales figures have yet to be released by the Department of Natural resources.

The research shows units sold in 1997 achieved an average capital growth pf 1.3 per cent.

PRD executive Greg Allan said I 2005 the figure was 11.2 per cent, down on 2004 figures of 14.6 per cent but healthier than figures achieved in the late 90’s.

“Surfers Paradise s unique in that it is between the beach and the Nerang River,” he said,

Those that have had the foresight to purchase an apartment with9n the bustling precinct have been positively rewarded with raising capital values.

“It is no surprise that the research shows absolute beachfront apartments resale’s come out on top in terms of price growth for 2005, with an overall average appreciation of 13.5 per cent per year, based on 63 resales.”

Absolute beachfront units account for just 12 per cent of the total apartments market in Surfers Paradise.

Beachside units had the highest capital growth for 2005 at 14.8 per cent but the lowest average resale price of $398,689, based on 192 resales.

With price growth of 9.9 per cent last year, riverfront apartment sale prices averaged $542,636, based on 146 resales.

Non-beachside units had an average growth of 9.6 per cent, based on 429 sales, which constitute 44 per cent of Surfers Paradise high rise market.

Average resale price was $409,811.

The research also shows that 1300 units were resold in 2003, the largest number in any year included in the study, pointing to investors cashing in after purchasing off the plan in developments and high-rise residents upgrading from old buildings to new projects.

“Over the nine year period, the building with the largest volume of sales is Crown Towers, with 354 resale’s, followed by Sun City at 290, and Grand Mariner at 232,” said Mr Allan.

“This can be credited to the buildings having the most number of apartments until recently.”

Also over the nine year period, apartments with mixed use buildings experienced average capital growth of 8.3 per cent a year across 1156 resale’s; non-residential buildings enjoyed 7.2 per cent price growth from 1045 resale’s. The top performing tower, the building which had the highest average resale price between 1997 and 2005, was the Rapist Group’s multi-award winning Platinum on the Beach.

The much lauded and absolute beachfront Platinum, on the corner of Northcliff Terrace and Markwell Avenue, recorded an average price of $2,811,667 over nine resales since its completion in 2002.

Over the same nine year period, Surfers Beachcomber, in the heart of Surfers Paradise, recorded the highest growth with an impressive average of 26.3 per cent a year, based on 145 resales.

Beachcomber was followed by Longbeach whose 64 resales averaged 23.7 per cent a year price growth, Platinum with 14.6 per cent, and Pinnacle with 34 resales and an average growth of 14.4 per cent last year.

: The top two buildings fir capital growth, Beachcomber and Longbeach, were strata titled and sold off within the last few years,” said Mr Allan.