For anyone who has been considering an apartment as their next Gold Coast property investment, the competition might be about to become that much tougher. This is according to a recently released report suggesting that new apartment stock may run out completely over the next 12 months in the Southern Gold Coast.
We're taking a closer look at the numbers, to see what we can learn from the current situation and how you can prepare for your next step.
Apartment stock running low
It appears that a combination of factors has contributed to the impending apartment shortage in some regions of the Gold Coast, according to the latest Urbis Gold Coast Apartment Essentials report.
Property firm, Urbis cites renewed confidence as well as strong infrastructure growth as influences in the situation over the next 12 months. The figures show that in the Southern Beaches precinct, a mere 51 apartments were available for sale at the end of June, trailing behind other precincts such as the North Shore, Coastal Fringe and Gold Coast Central.
"Some areas of the Gold Coast have less than three quarters worth of new apartment stock available for sale," said Lynda Campbell, Senior Consultant at Urbis.
"The areas under the greatest pressure are the Southern Beaches, which has approximately five months of new apartment stock available for sale, and the Coastal Fringe, which has only eight months of product for sale."
Southern Beaches suburbs under pressure include Bilinga, Burleigh Heads, Burleigh Waters, Casuarina, Coolangatta, Currumbin, Kingscliff, Kirra, Mermaid Beach, Mermaid Waters, Miami, Palm Beach, Tugun and Tweed Heads.
Facing a potential shortage
Over the last financial quarter, Urbis found that total sales were steady – over 300 Gold Coast apartments were sold, with the average price sitting at just under $580,000. The most popular units? Apartments with two bedrooms, two bathrooms.
Over the coming months, Ms Campbell expects to see growing pressure on new apartment supply along the coast should sales increase.
"Growth on the Gold Coast is very strong with more than $11 billion in infrastructure projects driving the economy. Increased tourism and relative affordability, compared to capital city markets has renewed confidence in the region," she said.
"We believe some buyers were sitting on the fence last quarter because of uncertain economic conditions brought about by the federal election and the end of financial year."
Racking up 203 unconditional sales, Gold Coast central saw the greatest activity in the Urbis report for the fourth consecutive quarter, with an average price of just under $610,000. In the precinct, just four projects remained in the presale phase, with 23 projects either under construction or already completed.
The latest edition of the survey found that while six new projects had been added overall, the existing six projects had already sold out. Additionally, Ms Campbell noted the number of deferred developments in the Gold Coast had increased by 55 percent over the last year.
"Projects tagged as deferred may eventually proceed to the marketing and construction phase but it is unlikely to occur in the short term," she said.
Where to next?
The next 12 months are set to be a potentially dynamic time for the property market, but don't let this deter you from your future plans. If you're looking to get involved in Gold Coast property development, the team at Ray White Projects Gold Coast is here to help.
Not only can we help you to access some of the latest projects in the region, we can also provide expert advice. Be sure to get in touch with us today to take the next step in your property journey.