GOLD COAST HAS TWO YEAR APARTMENT OVERSUPPLY

Written on the 13 January 2012

GOLD COAST HAS TWO YEAR APARTMENT OVERSUPPLY

A PROMINENT property commentator believes the Gold Coast has enough apartment supply to last at least two years and says it will be unsustainable for new product to come on line in the next 12 months.

Midwood Report author Bill Morris calculated that new high rise apartment sales hit a two-year high in the quarter to November last year with 73 sold - due mainly to mortgagee sales in Nirvana at Kirra (33) and Southport Central (16). He says Oracle recorded no sales in the quarter, despite being in receivership.

“Even though most of those were mortgagees, it is still a good sign,” says Morris.

The figures contrast to Brisbane, which recorded its worst level of sales for two years (74), with a seven year supply of 1632 apartments still on the market.

The Gold Coast has 552 apartments for sale with new apartments at Hilton, Soul and Oracle, while the construction of RDG’s new $950m six-star Jewel project will begin in 2013.

Morris says the Gold Coast still needs a break from major high rise projects, despite the latest figures.

“I wouldn’t be thinking about any new project for a year,” says Morris.

Researcher Colleen Coyne says while the market will be senstive to price points, there would be some developers that will 'find the right sites and offer the right products'.

Coyne believes projects that offer apartments below $500,000 will prosper and cites product such as the re-marketing of Amagamated Property Group's Broadbeach Central and one-plus-one bed product in Southport Central as examples.The 20-level Broadbeach Central has the only supply of new developer stock in Broadbeach priced from $369,000 for a one-plus-one bedroom with double bathroom.

"Those projects that have price points where people are most active - below $500,000 are going to have a chance in the next 12 months," says Coyne.

While new high rise sales were up for the previous quarter, a drop in prices is expected this year.

Analysts expect the fall to be less severe than 2011, with a four per cent drop in house prices and a 2 per cent fall in unit prices.

According to a recent RP Data report, the worst-performing suburbs for unit sales were Broadbeach, Tugun, Main Beach, Currumbin Waters and Paradise Point, where prices fell 10 per cent or more.


Latest News

DARK DAYS AHEAD FOR AUSTRALIAN RETAIL AS REPORT FORECASTS MAJOR INDUSTRY ROUT

ALMOST 1,600 retail businesses are at risk of imminent collapse, including 21 major retailers with turnovers of more ...

GOODMAN TAKES PROFIT AND REVENUE DECLINE BUT LOOKS TO CASH IN ON AMAZON'S ARRIVAL

Commercial and industrial property group Goodman (ASX: GMG) has reported underlying full year net profit has dropped ...

ARIADNE CUTS DEMANDS FOR FOUR ARDENT BOARD SEATS TO TWO AHEAD OF EGM

REBEL shareholders have reduced their demands on embattled theme parks operator Ardent Leisure (ASX: AAD) to give the...

VITA GROUP POSTS STEADY RESULTS DESPITE ROUGH YEAR

IT'S no secret Vita Group (ASX: VTG) has had a testing year, however the company has still managed to deliver ...

Related News

DARK DAYS AHEAD FOR AUSTRALIAN RETAIL AS REPORT FORECASTS MAJOR INDUSTRY ROUT

ALMOST 1,600 retail businesses are at risk of imminent collapse, including 21 major retailers with turnovers of more ...

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

ANALYSTS PREDICT WHAT AUSSIE LIVING IS LIKELY TO BECOME IN THE NEXT CENTURY

AS THE Australian population continues to grow, analysts are predicting what the country is likely to look like wi...

SEVEN WEST REPORTS MASSIVE LOSS AND CUTS CEO TIM WORNER'S PAY PACKET BY $450K

SEVEN West Media (ASX: SWM) has posted a full-year loss of $744.3 million and cut CEO Tim Worner's pay packet by ...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter