Labrador is emerging as a “sleeping giant” in Gold Coast real estate
New apartment project continues ‘bridesmaid’ suburb’s transformation
Labrador ‘s transition from ‘bridesmaid’ suburb to the gateway of the Gold Coast’s aquatic life sty le reached another milestone last month with construction starting on the latest tower, Summit.
Ground was broken on the 83 apartment Frank Street project with the development set to combine Broadwater and Hinterland views with door-step access to public transport, restaurants, parkland, waterside walkways and boating infrastructure.
Released to the market today, Summit’s launch coincides with a rising number of younger demographics and downsizers moving to Labrador for its lifestyle, affordability and proximity to amenities.
The suburb‘s popularity has underpinned a tight rental vacancy rate of just 2.2% (SQM Research) CoreLogic data showed Labrador was in the top five Gold Coast suburbs for apartment sales in the last three months (70 apartment sales). It was the most indemand suburb north of Southport for unit investors. Formerly a ‘bridesmaid‘ to neighbouring Southport, LJ Hooker‘s top Queensland agent, Ana Tulloch of LJ Hooker Broadwater, said Labrador was winning favour with the property industry for its proximity to infrastructure and lifestyle amenities.
“Labrador has emerged as the sleeping giant of the city‘s property market with even the likes of international developer Sunland part of the transformation, announcing a new residential masterpiece for next year,” said Ms Tulloch.
“From Summit, you will be able to access the Southport CBD, Harbourtown Shopping Centre, boating, swimming, exercise trails, waterside dining and the funky Chim Park strip within a fiveminute drive.
“And within a IO-minute drive you‘ll have access to Griffith University , Gold Coast University Hospital and the Ml to Brisbane. “Summit is the only development currently progressing in construction, continuing Labrador‘s evolution, said Ms Tulloch.
Labrador has quietly been delivering results for investors in recent years. Indeed, Labrador‘s apartment market has held its own against high-profile Southport – the city‘s CBD – providing owners of the former 19% capital growth over the last five years, compared to 17.8% for the latter. Gross rental yields for investors were also marginally higher in Labrador than Southport- 5.7% compared to 5.5%.
One-bedroom apartments in Summit start at $352,000, with two-bedrooms priced from $422,000 and three bedrooms from $612,000. Based on estimated weekly asking rents of $540 for a two-bedroom apartment, investors have the potential to be cash flow positive ($21.33 per week, net) before applying depreciation or capital works deductions*.
Irrespective of the outcome of the 2019 Federal election, investors can purchase in Summit with peace of mind that they can maximise their taxation returns, including negatively gearing their investment.
Ms Tulloch said architects had embraced the aspect to the Broadwater and seabreezes to maximise alfresco living in apartments, complementing the Summit’s central location.
(*) Purchase Price and income & expense.figures are indicative only and may vary to actual costs.