Gold Coast apartment supply at lowest level since 2003
March 12, 2012
The supply of apartments on the Gold Coast is at its lowest level in more than eight years, according to new research from Colliers International.
No new apartment supply was added to the market during the December 2011 quarter, which resulted in a further decline in the number of new apartments for sale across the Gold and Tweed Coasts. At the end of December there were 1139 apartments available, equating to a supply level of 45 months – or less than four years – based on the current quarterly selling rate of 76.
Tony Holland, Colliers International Gold Coast Project Marketing Director, said this was the lowest level of supply since the end of 2003 when sales figures were at peak numbers and supply had fallen to under 1000 apartments.
“While there’s currently around three years’ supply of apartments in the market, we expect the current quarterly selling rate to increase this year as the Gold Coast market picks up and therefore, the level of supply to drop even more,” he said.
“We anticipate that the rate of sales will increase going into 2012, with price reductions at premium buildings such as Oracle and Hilton being implemented and confidence returning, which will lead to a further decline in supply and could even see critical shortages in some areas of the market.”
Lynda Campbell, Colliers International Gold Coast residential research manager, said the best performing precinct on the Gold Coast in the December quarter was Southport/Labrador.
“This was actually the best performing precinct for the third consecutive quarter with a total of 23 sales across six projects,” she said.
“Southport Central Tower III was the best performing project across the Gold Coast with a total of 13 sales.
“Meanwhile, of the three sectors, high rise recorded the highest sales rate with 41 sales across 23 projects. Medium rise followed with 28 sales across 17 projects and low rise had seven sales across 10 projects.”
Mr Holland said there were developers seeking approval for apartment developments on the Gold Coast, but they were unlikely to come to fruition for some time. He said new developments would most likely be concentrated in the area between Labrador and Broadbeach.
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