FLOOD OF 2,000 NEW GOLD COAST APARTMENTS NOT ENOUGH TO MEET DEMAND

Colliers Research has revealed that despite 2,000 new apartments scheduled to finalize this year, there is a substantial supply gap in the real estate market, with only about a year of housing supply left.

The Colliers data suggests that the shortage has become so acute that the ‘housing crisis’ is also hitting the top end with a 30 per cent supply gap for luxury apartments.

“Despite an estimated 2,000 apartments coming to completion later this year, it has to be remembered that the bulk of this supply has already been presold over the last three years,” said Colliers Residential Director David Higgins.

While price gains have been driven in part by lagging supply, with Colliers estimating that the supply gap sits at 30 per cent even for the luxury end of the market, demand has remained elevated on the Gold Coast for some time. Colliers estimates that 30 per cent of all high value property transactions in Southeast Queensland last year occurred on the Gold Coast.

“Over the next decade, the stage is set for what we believe will be a transformative shift in luxury real estate on the Gold Coast with the critical force behind this being led by the baby boomer demographic,” said Mr Higgins.

“These buyers, many of them downsizing, are investing their capital in luxury apartments and houses and frequently paying cash up front, without the need to secure finance to complete.

“Ultimately, this will continue to be driven by an estimated $272 billion inheritance windfall over the next decade as wealth begins to be transferred to the next generation.”

The latest research from Colliers into the apartment sector shows that the Gold Coast recorded total sales of 571 apartments for the first half of 2024, which is slightly above the 499 reported a year earlier.

While there are about 5,650 new apartments under construction across the Gold Coast, only 31 per cent are expected to be completed this year and a further 36 per cent next year.

Despite the challenges facing new apartment developers, eight new projects were launched during the second quarter of this year, comprising a total of 822 apartments.