The latest Gold Coast and Tweed New Apartment Report, compiled by Lynda Campbell of Collier's International Gold Coast, reveals apartment sales in the September 2008 quarter dropped dramatically following recent global economic turmoil.
In the three months to September, 121 unconditional sales with a gross value of $86.3 million across 74 projects were recorded, down from 412 sales with a gross value of $352 million across 74 projects, during the previous quarter.
Of the latest sales spate, the high rise sector of the market recorded 58 sales over 30 projects, significantly less than the 224 recorded last quarter and 179 a year ago.
Colliers International director of project marketing, Brinton Keath, said the Gold Coast is not removed from global economic impacts which have been reflected in the latest sales figures; however the region's property market is somewhat more protected due to its continual stream of holidaymakers.
"Colliers International lead marketing programs have generated a strong amount of interstate and Brisbane inquiry for Gold coast projects in recent months and this inquiry expected to visit the region over the Christmas holiday period to inspect the projects, we expect to see a marked improvement in total sales in the next quarter," Mr Keath said.
"The fact that the underlying fundamentals of Gold Coast's property market, being a shortage of supply and strong growth coupled with a falling Aussie dollar, is enticing investors right now and will continue to do so in the New Year, which is excellent news for the local property industry."
The best performing precinct during the September quarter was the central precinct, which includes the suburbs of Mermaid Beach, Miami, Burleigh Heads, Robina, Varsity Lakes and Carrara.
More than 32 unconditional sales across 18 new apartment projects were recorded in the precinct during the September quarter for a total of $16.1 million. The majority were in Robina.
"Quality investment product, within particular price points, are clearly leading the market right now. Seventy-five per cent of sales in this precinct were priced between $400,000 and $600,000.
"These suburbs also offer a range of different products, a high level of amenity and solid rental returns and this is supported in the most recent results." Mr Keath said.
The best performing project in the central precinct during the September quarter was Robina Land Corporation's The Wharf mixed-use development at Robina, with 10 apartment sales.
Meriton's Brighton on Broadwater Marina tower recorded 14 of the 28 sales in the Labrador / Southport precinct, making it a standout performer in that area and the best performing high rise in the region.
Mr Keath said the research showed supply levels across the low, medium and high rise sectors increased from 15.9 months during the June 2008 quarter to 51.9 months for the September quarter.
The 51.9 months represented a total of 2094 apartment available for sale across the region.
"Although this is not the highest number of available apartments we have seen since the survey began in 1996, this figure is somewhat mis-represented given the extremely low level of sales," Mr Keath said.
"This high supply level will change quickly as the quarterly results improve and a number of projects are put on hold due to the tightening of credit within development funding from all financial institutions."
The Surfers Paradise, Chevron Island and Main Beach precinct recorded the highest sales value across the Gold Coast and northern New South Wales with $26.8 million in sales. The Sunland Group's Avalon high-rise in Surfers Paradise was the best performing project in the precinct with 10 sales, at an average price of $682,000.
Medium rise buildings showed the lowest supply levels with 30.1 months. There were 48 sales across 25 projects, with Harmony Broadwater at Runaway Bay the best performer in terms of sales, with 12 apartments sold.
In the low rise sector, there were only 15 sales across 19 projects. Accacia at Robina and Ocean Walk at Currumbin were the best performing low rise projects, recording four sales each.