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Broadbeach market cooling, but top buildings performing well

Preliminary high-rise apartment resale figures for 2008 show the average sale price this year to date has fallen to $662,894, down from $788,528 in 2007, while the average capital growth is sitting at 4.9 per cent compared with 5.9 per cent last year.

However, the report found Broadbeach still boasted four buildings with an average re-sale price of more than $1 million and three with an average price of more than $900,000.

These include Vogue on Broadbeach, where sales have averaged more than $3.3 million, Waterline, which has achieved average prices of just over $2 million, Verve at $1.48 million and Air on Broadbeach at $1 million.

Vogue on Broadbeach also came out on top in terms of capital growth, achieving 21 per cent per annum since 1997, followed by Aria at 12.3 per cent, Sandpiper at 11.9 per cent, Air on Broadbeach at 10.5 per cent and Boulevard North at 10.5 per cent.

The Broadbeach High Rise Apartments report, compiled by PRDnationwide Gold Coast research manager Lynda Campbell, was based on 2,250 settled apartment resales from 1997 to 2007, including preliminary figures for 2008.

PRDnationwide residential property director Rob Sainsbury said the fall in the average sale price reflected in the preliminary 2008 figures was due to a number of factors.

"There hasn't been a lot of stock available in the higher end of the market, which is one of the reasons why we have seen the average sale price coming back while the suburb's premium buildings have continued to perform well," he said.

"Also, given current market conditions, buyers are putting more pressure on sellers across the board to accept lower prices, which is another factor contributing to the fall in average sale prices recorded in Broadbeach's apartment market this year to date."

The report showed apartment prices had risen steadily between 2001 and 2007, with the top ten buildings in the suburb achieving average sale prices between $795,000 and $3.3 million in 2007, compared with a decade ago when the top ten buildings achieved between $359,000 and $960,000.

Mr Sainsbury said Broadbeach remained a hot spot for million dollar apartment sales.

"A decade ago, no apartments in Broadbeach sold for more than $1 million, but during 2007 there were 60, accounting for 21 per cent of all sales recorded, and preliminary figures for this year show 17 million plus sales," he said.
"The suburb has become the focus for premium high-rise apartment developments, with 13 new buildings completed since 2000 and another five towers under construction, which will inject an additional 880 apartments into the market.

"Several new developments have also added additional commercial and retail outlets, further enhancing Broadbeach's image with both residents and visitors, and adding to an already strong mix of amenities including the casino, convention centre and shopping precincts."

Buildings on the esplanade performed strongest, with an average resale price of $682,102 and capital growth per annum of 7.8 per cent, while beachside buildings achieved an average resale price of $427,847 and capital growth per annum of 5.5 per cent.