The Gold Coast apartment market looks set for a return to form, according to Colliers International.
The latest Colliers International Gold Coast Apartment Research and Forecast Report, which studies the new apartment market on both the Gold Coast and the Tweed Coast, found sales volumes have lifted for a third consecutive quarter after hitting a low in December 2011.
The September quarter this year recorded 140 sales across high-, medium- and low-rise sectors, which was an increase of five per cent on the previous quarter and 43 per cent on the same period last year.
Colliers International residential project marketing director Tony Holland said price growth in the new apartment market was yet to be seen, but an impending supply shortage would likely lead to strengthening prices at some point down the track.
“The number of new apartments on the market is sitting at its lowest level in nine years, with some areas having virtually no stock, particularly those areas on the southern Gold Coast,” he said.
“Based on the current quarterly selling rate, the supply of new apartments could be taken up within 1.9 years, which is the lowest expected absorption period in two years, and if the sales rate increases this timeframe will be reduced.
“With no significant amounts of new stock entering the market in the short term, availability will continue to fall and with improving confidence in the region, demand is likely to rise.”
Mr Holland said three reductions to interest rates this year had contributed to improving confidence on the Gold Coast, as well as an increase in domestic and international visitors in the tourist areas of Surfers Paradise and Broadbeach during the most recent school holiday period and during international events that have recently taken place, such as the Gold Coast 600.
“The remainder of 2012 should see confidence continue to lift as we move into a low interest rate environment, development incentives take effect and the Christmas holiday period arrives, which is set to bring an increased number of visitors to the area,” he said.
“Potential investors and owner-occupiers who take a ‘wait and see’ approach may miss out as new apartment stock levels continue to decline to the lowest levels in nine years. Opportunities that are in the marketplace now will most likely never be repeated.”