Luxury Property Prices Falling on the Gold Coast

Q1 is the iconic 80-story skyscraper - impressive even on the Gold Coast, Australia’s home of skyscrapers. Q1 is Australia’s tallest residential tower was completed.

Less impressive are stories emerging of the losses that some investors are taking. One 4-bedroom apartment on the 72nd floor was bought in March 2005 for A$3.4 million was re-sold in January this year for A$2.75 million, which is still a lot of money for a 417 sqm apartment, even one with “stunning views”. Which it should have as Q1, at 322.5m high, is the world’s tallest residential tower and the world’s 20th highest tower.

Q1also claims the highest swimming pool in Australia (15m x 6m), the pool is located on the penthouse on level 74, 217 meters above ground level. The same level also has the highest external balcony in Australia.

The losses seem to be affecting mainly properties at the upper end of the already inflated Gold Coast prices. The Ephraim Island project has lost some investors a lot of money with a quarter of the 16 resales since the project’s completion three years ago, being at a loss. Current prices quoted on the Ephraim Island’s Sales page quotes prices from A$600,000 to A$5 million. Ephraim is an island development, though unlike the Dubai approach of building your own island, Ephriam was an existing island with just a bridge added for access. It still makes for convenient boat parking though if that is what you are looking for in your holiday home.

Stockland’s Elysee project has also brought losses with a sale in March 2008 of A$1.268 million reflecting a loss of $40,000 from the purchase two years earliers. Though of course once you add agent’s fees and holding costs the loss would be a lot greater.

So maybe for the adventuress investor it might be time to start looking at the Gold Coast for a bargain deal:

Photo Credit: Q1