Gold Coast suffering from supply problem
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”.
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Colliers International director of residential projects, Tony Holland, said even with new stock in the pipeline, demand was 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 which can ride the next cycle upwards.
"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."