According to a Courier Mail article, there is less than 800 apartments for sale in high rise buildings stretching across the Gold Coast. With sales rates at their lowest since the 1990’s, some 47 sales per quarter, it is estimated current stock on the market will take at least five years to absorb. This doesn’t include new stock coming onto the market from three major projects nearing completion including Soul, Hilton and H20.
Property researcher Bill Morris said “While the rate of sale can change there is something like five or six years worth of stock.”
Despite the current oversupply of apartments vs demand, Andrew Bell from Ray White Surfers Paradise Group’s warned that there is no new developments planned for coming years saying “New stock entering the market is non-existent, There will simply be no choice for buyers on the Gold Coast over the minimum of the next five years.”
The lack of pent up demand on the Gold Coast, along with the chronic oversupply of apartments is thought to put a future ceiling on prices.
ยป Coast apartment sales falling flat – Courier Mail, 4th February 2011.
Warning, Warning, Warning!!!!! If you meet Andrew Bell from Ray White Surfers Paradise, please tell him he reached the ceiling of his stupid property spruiking BS and people are feed up with his “wishfull” ability to look 5 years into the future and making predictions of ‘how much stock will entering the market’. Warning, Warning, Warnig!!!!! instant damage of your brain will occur if any property talk reaches your ears. Warning, warning,warning………….you have been warned!
I understand exactly what Andrew Bell means. With 800 apartments on the market, there will be little choice in the next five years. I would certainly find it hard to choose one, wouldn’t you? Those developers better build some more, so I can choose from say 1600 apartments.
You wouldn’t believe it, there is now a land shortage on the Gold Coast according to the spruikers ! Never mind the fact that incomes are low, house prices are high and unnafordable, and there are f@ck all jobs. Holiday towns are going to get hit hard in this downturn, barring any significant Govt intervention. It’s on again folks. The Gold Coast property market has been falling like a stone since March 2010. The stockpile is massive and is growing daily, especially unit stocks. There is currently 18 months worth of stock on the market and RE agents are pleading with vendors to get their homes off the market. Things are going to get much worse. All sectors of the market are falling, including the top end. Recently, the Q1 Penthouse sold for $4.7m. This was only $3.1m shy of the $7.8m that the vendor paid for it in 2002 ! Thats a 40% haircut over 8 years. The poor bugger probably worked his arse off on that joint, and got f@ck all in return. They overcapitalized and then tryed to sell in a falling market.
Mahamed
Oz Housing Bubble Portal
http://www.theaustralian.com.au/business/property/dont-believe-real-estate-hype-on-property-shortages/story-e6frg9gx-1226003109175
here we go, hope Andrew Bell enjoyed some primary school education so that he can read this articel. Who would you believe, a Real Estate Agent or a independent reseacher? I made my choice………….
Interesting article J. But although Melbourne has seen a large amount of land re zoned. It is not actually being sold in any great volume. Land speculators now control the supply. (All under the watch of the “great economic manager”Brumby Labour government ). Thus meaning there is still a supply problem as blocks that are being sold are still very over priced
Fred, I agree with you. The developer are Controlling supply by releasing land in stages. There is actually no real free market in build up areas. It’s a Business Plan with steady growth targets i.e. A five Year plan with a target profit growth. This explains why land sales volume (Demand) Is down but land prices skyhigh and do not adjust to demand.
So we have a glut of apartments?
Then how come foreigners are stepping up to build crap loads more???????
For some stupid reason idiots from overseas think it’s a great time to build more………….
http://www.theage.com.au/business/asian-buyers-snap-up-local-sites-20110210-1aoq6.html
Who in their right mind would want to pump their own capital (and lots of it) into one of the last remaining realestate bubbles in the world??????
Even if the land supply slows, there are very few first home buyers entering the market.
So although supply of land may seem ‘slow’, this speculation is based on the past 10-15years of first home buyers entering the market during the ‘boom’ period. This is no longer the case. The first home buyers don’t have $60k as a deposit for a home (saving $1k / month for 5years), nor can they afford to buy an ‘asset’ which is 6-7 times their annual salary.
The ponzi scheme has started to show signs of stalling.
I just hope the government does not stop it from correcting.
An extrordinary state of affairs this property bubble. I was surprised when prices in Melbourne increased 20 percent last year that there was not blood in the streets at the profound social inequity of it all. Instead a frenzy of panicked or greed driven buying. The cynisism of the government instituting the first home vendors scheme to
prop up the banks and housing bubble during the GFC and then passing it off as humanitarian assistance of first home buyers. Where was the critical analysis by the media, where were the hard questions holding our politicians to account? This is a monumental housing bubble driven by credit and when it bursts there will be tremendous suffering.
@ CharlieChapman – Totally agree there will be tremendous suffering for all of us. No-one will be able to escape from it. And the corrupt people in government and the banks and RBA will keep being paid vast sums of money to bring down an entire economy. But none of them will ever be held accountable.
WTF?
“Gold Coast real estate agency NEO Property has gained notoriety after it emailed its newest property listing of a house at Binda Place, Sorrento, to 100 clients. It features a video clip complete with music, images of the property and images of the model – peeling her clothes off inside the property.”
http://www.brisbanetimes.com.au/national/a-new-low-for-real-estate-agents-as-underwear-models-brought-in-20110212-1arjk.html?from=age_ft
How pathetic has this bubble gotten when they do this to try and sell property………………… and if this motivates you to buy a property at the moment you need your head examined.
To J from Melbourne.
I would be wary of having too much to say about anything until you return to night school and attend adult learning classes.
It is not ‘articel’. It is spelt ‘article’. And ‘wishfull’ is spelt ‘wishful’.
You are one of those serial menaces who has nothing to offer but plenty of your own ‘bs’ to spin.
Your comments are repetive, boring, and have no substance.
Go and evaporate and leave some space for some intelligent discussion on this topic by people who actually do business and live on the Gold Coast.
To Cait
you are too entitled to a opinion! Correcting my typos is a true achievement. I’m okay with my spelling, English is only a third language to me. However, I hope you do not consider property flipping as business. A REA is a obsolete feature, it should be cut out in the transaction process, same as real business would consider to streamline productivity and improve the value chain. But the Gold Coast is not a business centre, only a tourist playground sucking out money in theme parks and relaying on tourist dollar. so don’t tell me you would have a clue about business at the GC. But hey, I take no offence with you – only intelligent people can offend me and you are certainly not amongst them.. What are you actually, a REA coming late to the party and all you do is picking on my spelling? Go and contribute something more meaningful.