GC beachside supply 'critical'

GC beachside supply 'critical'

by 0 comments

Despite perceptions that the Gold Coast property market suffers from an oversupply of apartments, one real estate group is contending the market has shifted, with demand now outstripping supply.

Colliers International, which has recently been appointed to market a new residential project located in Broadbeach, contends that the Gold Coast beachside apartment market is now in a “critical state of undersupply”.

Colliers International director of residential projects Tony Holland said even with new stock in the pipeline, demand is unlikely to be met any time soon.

“The Gold Coast apartment market in general is in a critical state of undersupply, with new apartment supply at a 30-year low,” Mr Holland said.

“Booming real estate markets in Sydney, Melbourne and Brisbane have left the Gold Coast as the most undervalued property market on the east coast of Australia. However, the decline in stocks of new beachside apartments has begun to put upwards pressure on values and pricing.”

Mr Holland said opportunities for investors to get into the market were diminishing, with lifestyle factors and increasing consumer confidence driving demand.

“Broadbeach is emerging as one of the Gold Coast’s premier apartment markets, given the suburb’s proximity to the beach, lifestyle amenities and established public transport networks, along with the $670 million redevelopment of the Pacific Fair shopping centre that is currently under way,” he said.

Mr Holland said “it’s no secret” the Gold Coast property market suffered during the global financial crisis, which coincided with an oversupply of luxury apartments.

This, according to Mr Holland, was followed by a period of very little construction activity, which has caused today’s supply imbalance.

“With confidence returning and existing apartments now being rapidly absorbed, there is a great opportunity for new, well-located, price-competitive apartment projects that can ride the next cycle upwards," he said.

"Couple this with the millions of dollars in infrastructure and development in the pipeline, currently underway or recently completed on the Gold Coast, such as the light rail and Commonwealth Games facilities, and the city is primed for a resurgence in the residential property market."

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
How this agent grew his database by 50% in five years

In this episode of Secrets of the Top 100 Agents, Robert Pignataro joins host Tim Neary to explain how he increased his personal database by...

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?