REPORT SHOWS PROPERTY SALES NOT SUSTAINABLE

Written on the 31 August 2010

REPORT SHOWS PROPERTY SALES NOT SUSTAINABLE

THE latest 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

ASF UNVEILS TRAFFIC PLANS FOR THE SPIT

A SECOND bridge over the Nerang River is the centrepiece of the ASF Consortium's plan to improve traffic flow ...

BHP AND VALE EDGE CLOSER TO $47.5 BILLION SAMARCO DAM DISASTER SETTLEMENT

BHP Billiton (ASX: BHP) and Brazilian mining company Vale have entered into a preliminary agreement with Brazilian fe...

BLK SPORT FOUNDER TYRON BRANT REMAINS CEO UNDER NEW OWNERS

BLK Sport has been purchased from receivers McGrathNicol by a private consortium composed of a TimorLeste-based oi...

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter