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Gold Coast apartments in short supply following robust sales activity

Gold Coast apartment supplies have hit a seven-year low after the market recorded only 450 sales in the June quarter.

The Announcement:

The supply of new apartments on the Gold Coast continues to plumb new lows after the market recorded 450 sales in the June quarter driven by strong owner occupier demand, according to the latest research from property consultancy Urbis.

The Urbis Gold Coast Apartment Essentials report for the second quarter of this year indicates that strong buyer appetite for new apartments on the Gold Coast has pushed the current available supply to a seven-year low.

Just 624 apartments were available for sale at the end of June, falling below the previous low of 634 apartments reached in early 2014.

Based on the current sales rate of 450 apartments per quarter, that gives the market only 4.2 months’ supply of apartments if no new projects are released.

When combined with the record first quarter, new apartment sales for the first six months of this year reached 1,192.

That’s 21 per cent more than the 987 apartments sold over the entire year in 2020.

“Supply reached a critical low across the Gold Coast at the end of June following another quarter of robust sales activity,” said Urbis Senior Consultant Lynda Campbell.

“This comes off the back of a record 742 sales in the March quarter. While the numbers in the latest quarter failed to match the first three months of this year, it was still the second-highest quarterly result in five years.”

The Urbis report found 14 apartment projects were sold out during the second quarter, with three of those new launches.

“The number of apartment projects selling out within months of launching highlights the extent of elevated buyer demand,” said Ms Campbell.

The situation had led to an imbalance of supply across the Gold Coast’s four key apartment precincts identified by Urbis. The North Shore precinct, from Runaway Bay to Hope Island, has 13.1 months’ supply and the Southern Beaches, from Mermaid Beach to Coolangatta, holds just 2.1 months’ supply.

“Some precincts are now in major under supply, although we are aware of a number of larger projects currently in train that may be ready to fill this gap,” said Ms Campbell.

The Urbis report estimates a further 1,000 apartments may be launched to the market over the next three to six months.

“However, if demand continues at the current pace, this supply will not be enough,” said Ms Campbell.

Strong demand for apartments in the Southern Beaches precinct has made it the most expensive for new apartments on the Gold Coast. The weighted average sale price in this market has surged by $141,906 to $1.366 million compared to the first quarter of this year.

The supply of new apartments on the Gold Coast continues to plumb new lows after the market recorded 450 sales in the June quarter driven by strong owner occupier demand, according to the latest research from property consultancy Urbis.

The Urbis Gold Coast Apartment Essentials report for the second quarter of this year indicates that strong buyer appetite for new apartments on the Gold Coast has pushed the current available supply to a seven-year low.

Just 624 apartments were available for sale at the end of June, falling below the previous low of 634 apartments reached in early 2014.

Based on the current sales rate of 450 apartments per quarter, that gives the market only 4.2 months’ supply of apartments if no new projects are released.

When combined with the record first quarter, new apartment sales for the first six months of this year reached 1,192.

That’s 21 per cent more than the 987 apartments sold over the entire year in 2020.

“Supply reached a critical low across the Gold Coast at the end of June following another quarter of robust sales activity,” said Urbis Senior Consultant Lynda Campbell.

“This comes off the back of a record 742 sales in the March quarter. While the numbers in the latest quarter failed to match the first three months of this year, it was still the second-highest quarterly result in five years.”

The Urbis report found 14 apartment projects were sold out during the second quarter, with three of those new launches.

“The number of apartment projects selling out within months of launching highlights the extent of elevated buyer demand,” said Ms Campbell.

The situation had led to an imbalance of supply across the Gold Coast’s four key apartment precincts identified by Urbis. The North Shore precinct, from Runaway Bay to Hope Island, has 13.1 months’ supply and the Southern Beaches, from Mermaid Beach to Coolangatta, holds just 2.1 months’ supply.

“Some precincts are now in major under supply, although we are aware of a number of larger projects currently in train that may be ready to fill this gap,” said Ms Campbell.

The Urbis report estimates a further 1,000 apartments may be launched to the market over the next three to six months.

“However, if demand continues at the current pace, this supply will not be enough,” said Ms Campbell.

Strong demand for apartments in the Southern Beaches precinct has made it the most expensive for new apartments on the Gold Coast. The weighted average sale price in this market has surged by $141,906 to $1.366 million compared to the first quarter of this year.

Source: Mediahunt Communications

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