PROPERTY SALES NOT SUSTAINABLE

Written on the 7 September 2010

PROPERTY SALES NOT SUSTAINABLE

A Gold Coast property report by Prodap shows 2041 aggregate sales of new developer stock for FY 10 – well short of the 6000 required to sustain population growth.

This compares to 1913 in the year ending June ‘09 and 1991 in the year ending June ’08 for both land lots and dwellings.

Report author Bill Morris says there has been little change in the last three financial years, despite dramatic changes in the economic climate. He says the sales volumes should really be up around 6000 per year to sustain population growth of around 15,000 per annum.

“There is currently pent-up demand occurring, which eventually will lead to a rise in average prices for new product,” he says.

“We have already seen the mean average house price reach $600,000 on the Gold Coast and it will get higher.”

Aggregate new developer stock is down to an unsustainable level of 1206 land and dwelling lots, which equates to only seven months supply at current take-up rates. There are 665 dry land lots available for sale on the Gold Coast and 80 waterfront lots.

“The low level of stock will stimulate demand in the coming months, leading to rising prices and a peak in the property cycle in late 2011 or early 2012. But the peak will be much lower than the previous one experienced on the Gold Coast in 2003-04,” says Morris.

Forecast production of new stock over the next 12 months is 3737 land and dwelling lots. Morris believes this is at a level above current demand, but still lower than underlying demand.

“The larger public company developers continue to dominate sales, with Stockland achieving the majority market share of vacant land sales (43 per cent) and Sunland achieving the majority market share of new dwelling sales (44 per cent),” he says.

The report also found that Upper Coomera, Gaven and Waterford recorded the highest number of vacant land sales in the June 2010 quarter, while Merrimac, Holmview and Ashmore were the highest in terms of new dwelling sales.


Latest News

SA GOVERNMENT APPOINTS ESCAPENET TO DELIVER ULTRA HIGH-SPEED INTERNET

THE South Australian government has appointed Adelaide business EscapeNet to deliver a $7.6 million ultra high-spe...

CAIRNS COUPLE DIVE INTO THE SHARK TANK AND CONVINCE FELLOW 'BOATIE' GLEN RICHARDS TO WORK WITH THEM

THEY'RE a husband and wife team with an invention that can help save the Great Barrier Reef, and lives, and Pe...

AFTERPAY MERGER WITH TOUCHCORP GIVEN THE GO-AHEAD BY FEDERAL COURT

AFTERPAY Holdings Limited (ASX: AFY) has been given the green light by the Federal Court for its merger with Touch...

MEGAPORT TARGETS GLOBAL EXPANSION WITH $27.8M CAPITAL RAISING

MEGAPORT Limited (ASX: MP1) will complete a $27.8 million capital raising to assist in expanding the group's plat...

Related News

CAIRNS COUPLE DIVE INTO THE SHARK TANK AND CONVINCE FELLOW 'BOATIE' GLEN RICHARDS TO WORK WITH THEM

THEY'RE a husband and wife team with an invention that can help save the Great Barrier Reef, and lives, and Pe...

DOWNER EDI GRABS MORE THAN 50 PER CENT STAKE IN HOSTILE TAKEOVER TARGET SPOTLESS

DOWNER EDI Limited (ASX: DOW) now holds more than 50 per cent of Spotless Group Holdings Limited's (ASX: SPO) sha...

STRUGGLING TEN NETWORK IS 'CASH POSITIVE' AND CAN BE SAVED, ADMINISTRATOR SAYS

THE ADMINISTRATORS of the Ten Network say the struggling broadcaster has cash to continue operating and have also ind...

METCASH NET PROFIT FALLS 20 PER CENT, ANNOUNCES CEO WILL STEP DOWN IN 2018

FOOD and grocery giant Metcash has announced its full year net profit has fallen more than 20 per cent and its CEO Ia...

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