Gold Coast Needs More Residential Developments To Meet Demand
The Gold Coast beachside apartment market is in a critical state of undersupply, with new stock in the pipeline unlikely to meet future demand, according to
There are currently just three beachside apartment developments on the market - and with buyers absorbing stock quickly, developers are now moving forward with plans for new coastal projects.
Rising confidence levels together with shrinking supply have triggered a shift in the market, said Colliers International director of residential projects Tony Holland.
"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 upward pressure on values and pricing.
"Approximately 30 apartments remain on the market at Synergy Apartments Broadbeach, Rhapsody at Main Beach is attracting strong demand, and at the top end you've got Sanbano at Coolangatta, where only a handful of luxury apartments remain on the market.
"Beachfront living is synonymous with the sunshine state. It's a lifestyle choice that has helped define the Gold Coast, and with current stock levels, this lifestyle isbecoming increasingly difficult to attain.
"Once the remaining apartments within the Gold Coast Central precinct are snapped up, there will be extremely limited opportunities to secure a new apartment close to the beach, until new residential developments hit the market."
Colliers International has recently been appointed to market a new residential project located in the central beachside precinct of Broadbeach.
"While these new beachside apartments will be a welcome addition - giving buyers more choice - it will not be enough to correct the imbalance between supply and growing demand along the coastal strip," Mr Holland said.
"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 underway."
Mr Holland said there has been a void in the mid and semi-prestige property market for some time and the launch of a new beachside development in the thriving Broadbeach precinct will give lifestyle buyers the choice that has been missing.
"It’s no secret that the lifestyle market on the Gold Coast suffered badly during the Global Financial Crisis," Mr Holland said.
"There was an oversupply of luxury apartments, with the likes of Soul, Hilton Surfers Paradise and Oracle hitting the market at a similar time, which was followed by a period of very little construction activity.
"With confidence returning, and existing apartments now being rapidly being absorbed, there is a great opportunity for new well located, price competitive apartment projects which can ride the next cycle upwards."
Mr Holland said recently implemented infrastructure, including the Light Rail and Commonwealth Games facilities, would prime the city for a resurgence in the residential property market.
