New developments dry on the coast

New developments dry on the coast

by 0 comments

Staff Reporter

Gold Coast development activity has remained relatively unchanged over the last three years, despite economic changes, according to a report.

Property market research company Prodap has found that aggregate sales volumes of new developer stock grew just marginally over the last financial year, from 1,913 in FY 2009 to 2,041 in FY 2010.

In FY 2008, aggregate sales volumes on the Gold Coast sat at 1,991.

Report author Bill Morris said sales volumes should really be up around 6,000 per year to sustain normal population growth (of approximately 15,000 per year).

"There is currently pent-up demand occurring, which eventually will lead to a rise in average prices for new product," Mr Morris said.

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

"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", Mr Morris said.

 

Staff Reporter

Gold Coast development activity has remained relatively unchanged over the last three years, despite economic changes, according to a report.

Property market research company Prodap has found that aggregate sales volumes of new developer stock grew just marginally over the last financial year, from 1,913 in FY 2009 to 2,041 in FY 2010.

In FY 2008, aggregate sales volumes on the Gold Coast sat at 1,991.

Report author Bill Morris said sales volumes should really be up around 6,000 per year to sustain normal population growth (of approximately 15,000 per year).

"There is currently pent-up demand occurring, which eventually will lead to a rise in average prices for new product," Mr Morris said.

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

"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", Mr Morris said.

 

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

With a combined sales volume of over $14 billion in 2017, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
Marnie Seinor on structure, database DNA and connecting with her local community

There’s no such thing as an “off switch” in real estate – so says McGrath agent Marnie Seinor, who came in at number 78 in this year...

View all podcasts

Does the benefit of being part of a branded group outweigh the cost?

Yes
No
Depends on the group
Do you have an industry update?