APARTMENT SUPPLY LOWEST IN A DECADE
Written on the 15 August 2013
SUPPLY in the Gold Coast new apartment market has reached its lowest level in a decade according to research by Colliers International.
Sales volumes in the June quarter fell slightly but remained strong compared to last year, while no new stock was added to the market.
This leaves less than 1000 new apartments available, with seven apartment projects selling out across the Gold Coast and Tweed during the last quarter.
Colliers International residential director Tony Holland says the residential market on the Gold Coast has well and truly turned around, with demand growing for new apartment projects due for launch over the next year.
“Based on the current sales rate, the remaining new apartment stock on the market could be absorbed within 17 months, and there will be serious undersupply at that time, particularly in the low rise sector, until these new projects get off the ground,” says Holland.
“Over the past year projects that had a significant overhang of stock, such as Oracle, Hilton and Soul, have sold a significant number of apartments and people are buying into those buildings with confidence.”
He says when demand outweighs supply prices will inevitably rise.
“Buyers are identifying that the fundamentals of the Gold Coast market are strong, and this increasing buyer demand, coupled with an undersupply, will lead to growth in prices over time,” he says.
“They know the future looks good for the Gold Coast, with around 10,000 people moving to the region every year and significant projects such as the 2018 Commonwealth Games set to give the area a huge boost.”
According to the research, the best performing area was the North Shore Precinct, including suburbs from Hope Island to Bigger Waters, which had a total of 58 sales across eight projects.
Southport, Labrador and Surfers Paradise also enjoyed a lifted sales rate while the Southern Beachside precinct, including suburbs from Palm Beach to Coolangatta now has an extremely low level of supply with just 14 apartments available across four projects.