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Half of the new homes to be built on the Gold Coast over the next decade will need to be designed to cater to the needs of downsizers, according to one housing market expert.
New research from property analyst Michael Matusik predicts that the Gold Coast will welcome about 146,000 new residents by 2030, with around 40 per cent of these expected to be aged 55-plus.
Mr Matusik said this means half of the anticipated 5,650 new dwellings required each year should be built to meet demand from an older population.
“This doesn’t mean we need to build more retirement villages, because most empty nesters and retirees here on the Gold Coast are actually looking to upgrade their lifestyle when they downsize,” Mr Matusik said.
“Contrary to popular belief, most downsizers don’t want small apartments — they want a property that is comparable in size to a small home and is well designed to suit their needs.”
Mr Matusik said size is important.
“About 70 per cent of new apartments being built on the Gold Coast are under 100sqm, despite the fact that some 60 per cent of all apartments resold on the Gold Coast over the past three years have been over 100sqm.
“Bigger apartments have gone up in value almost twice as fast as smaller apartments over the past five years, and given the demographic changes the Gold Coast is facing, I’d expect that trend to continue.”
Mr Matusik said developers need to be more discerning when bringing new projects to market.
He said the Gold Coast has the chance to grow its share of the luxury downsizer market, attracting buyers willing to spend between $1 million and $2 million on a beachside residence.
“The Gold Coast apartment market has the chance to really shine by delivering the right type of housing to cater to the market,” he said.
“When you consider the fact that luxury apartments in Melbourne and Sydney are selling for between $15,000 and $18,000 per square metre, and we have comparable apartments on the Gold Coast for around $11,000 per square metre, it’s easy to see where the value for money is.
“Although downsizers across the board appreciate a larger abode, those in the hunt for a million-plus property have a checklist that focuses on location, views, security and amenities.”
Mr Matusik said the fundamentals are still the same.
“Location is still king, with a beachfront or beachside position attracting a premium, with apartments offering an unobstructed water view attracting prices between 30 and 80 per cent more than a similar apartment on a dry block.
“While a water view is a major plus, new projects also need to have standout features and resort-style amenities that blend the benefits of home and apartment living to make the shortlist for luxury downsizers.”
Colliers International Gold Coast director David Higgins said buyers at the top end are looking for a point of difference when purchasing an apartment.
“While a beachside location and views that can’t be built out are certainly a drawcard, buyers are also looking for intangible amenities which indirectly improve lifestyle,” he said.
“Post-election and following the recent interest rate cut, we’ve seen market sentiment and buyer enquiry improve both locally and from interstate.
“We feel confident the Gold Coast has a bright horizon, with more than $8 billion in infrastructure development and upgrades in the pipeline, comparatively affordable luxury apartments and a lifestyle that is second to none.”
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