Downsizers descend on Burleigh Heads as apartment supply shortage becomes critical
Demand for apartments in the Gold Coast hotpsot Burleigh Heads continues to soar as a surge of interstate buyers is creating a critical shortage of supply, particularly for three bedroom apartments which are being snapped up by downsizers.
That's the view of the local estate agents, who are even seeing old and ageing apartments sell for premium prices.
Adam Young of Burleigh Heads’ Black and Young Real Estate, who has been selling real estate in the area for over three decades, says he has never seen the market in Burleigh so strong.
"Burleigh is the ‘go to’ destination on the Gold Coast as a lifestyle, entertainment and dining precinct and real estate sales are reflecting the suburb’s newfound popularity.
“The market is very strong, driven by interstate migration and downsizers who see apartment living in Burleigh Heads as under-valued given its central location and the national park setting which is not unlike Noosa,” Young says.
"We have swathes of interstate buyers who think we are under-valued, and they are probably right."
Young says the problem in Burleigh is that there are very few three bedroom apartments on the market and those that are put on the market are snapped up very quickly.
“You only have to look at what happened with Spyre Group’s Natura project under construction at Burleigh Heads to see the demand, as they sold 25 apartments our of 33 in one weekend last year.
“But the market has gone north since then and people are prepared to pay big dollars to secure three bedders that are rare as hen’s teeth.”
There's also been big money sales away from the new luxury developments. An ageing three bedroom apartment on The Esplanade just sold for $2.5 million, more than $600,000 over its reserve.
There was another unrenovated apartment that sold for $1.5 million off-market.
Burleigh is set for a new development, 88 Burleigh, with Gold Coast development company Allure Property Corporation lodging plans for the boutique luxury apartment project.
Allure paid $13 million for the 809 sqm site on The Esplanade and have had DBI design the 27 apartment, 17 level tower wrapped in glass.
