Why every apartment investor metric stacks up at Andiamo Hope Island
When it comes to apartment investing, there are two key criteria to look at; the vacancy rate trends and current rate in the area, and the price per square metre.
Local developer Robert Laybutt was well aware of what's important to investors and went against the grain on the island of producing apartments that were solely for the downsizer. What he's produced lends itself perfectly to the investor or first home buyer market.
The result is Andiamo Apartments, the most affordable apartment development Hope Island has seen in years.
The first metric is the vacancy rate. There are just over a dozen rental properties currently available on Hope Island, 90 per cent of which have three bedrooms.
"The rental market in areas such as Hope Island and its surrounds have experienced some of the most significant price hikes in the country," Bernice Cooper, of Mercer & Cooper said.
Locals buyers agency firm By The Coast Property says that with constrained supply and continued demand from interstate and overseas migration, strong demand for apartments and increased construction costs, property prices and weekly rents on the Gold Coast will continue to rise through 2024.
They believe that weekly rents will continue to rise in 2024 fuelled by migration and a continued shift into more affordable apartments from free-standing houses offering property investors the opportunity for increased yields, particularly if interest rates fall later in the year.
The other key element investors look at when purchasing is the price per square metre.
The Light Rail Spine experienced the most uptick in new apartment prices in 2020, rising by 9.5 per cent to an indicative value of $11,500 per sqm. It ranged from $8,800 sqm to $14,3000.
Andiamo's starting price per sqm of $7,500 isn't even close to the range.
The two-bedroom apartments at Andiamo begin at $630,000, which is luring first home buyers given the Gold Coast median unit price according to property data analytics firm CoreLogic is $721,000.
The majority of apartments left fall under the $750,000 First Home Owner Grant cap, so first home buyers at Andiamo don't have to pay a penny on stamp duty.
Both first home buyers and investors have also been drawn to the low body corp, just $70 a week. That's despite amenity in the form of a reosrt-style swimming pool, barbecue area, multi-purpose room and access to lifts.
Located on Broadwater Avenue, Andiamo comprises 76 apartments designed by David Gallez Architect.
Investors know the location is an important factor in securing a tenant. Andiamo is ideally located just 100 metres from Broadwater Plaza where there's a Godfather Pizza and a handful of retailers within. Just a few hundred metres the other way is the more abundant Hope Island Marketplace, the shopping hub of the whole of Hope Island.
Hope Island is also home to some of South East Queensland's best golf courses, 16 in total across Hope Island and the nearby Sanctuary Cove.
Andiamo Apartments is currently under construction by SEQ builder Bryant Construction and is expected to be completed in early 2025.
