Gold Coast housing market: ‘Disaster’ as data reveals land supply ‘falling off a cliff’

More than 40,000 units have been given the green light in the past 10 years but never built. Now the city’s planning boss has revealed how some of them will be brought back.

The city’s planning boss has warned the availability of skilled building contracts will only tighten in the years leading up to the Olympic Games as more infrastructure is needed in the southeast.

The Gold Coast housing sector is under pressure, with slowing development, a lack of available land and a shortage of skilled tradies.

With around 40,000 units approved for the city but unlikely to ever be built, Mr Hammel said the next city plan would help address the issues.

“We need to analyse where those approvals are and look at what the feasibility gap is in those developments to see if, as part of the new planning scheme, we want to make adjustments in those areas that hopefully lead to updated approvals and then conversion to construction,” he said.

Councillor Mark Hammel. Picture: Glenn Campbell

“I think by far one of the most critical things that we need to do practically between state and local government is focus on infrastructure-led planning – so coming up with theoretical targets and theoretical supply is one thing but in a market that is incredibly tight for civil contractors to deliver road upgrade projects, to deliver intersection upgrades, to deliver stormwater projects.

“We need to be more focused on other projects that we are doing going to assist with enabling dwellings supply.”

Sales data compiled by real estate firm Colliers and revealed on Monday shows just 55 properties were sold during the first three months of 2024, while around 2000 houses were sold during the same period, down from 2750 just three years ago.

It was revealed earlier this month that housing prices had increased more than 75 per cent in the past four years with new data showing it costs more than $1m to get into much of the city’s property market.

A September report, by property consultancy firm Urbis, warns the city faces the “risk of a dramatic slowdown”, with thousands of units appearing increasingly unlikely to be delivered in coming years despite record population growth and record-breaking sales. It noted the number of projects launched in the first three months of 2024 was the lowest since the beginning of Covid.

Mr Hammel said it was critical to get the new planning scheme locked in to ensure housing projects could get off the ground in time to get contractors as the wave of building ramps up in coming years.

“In a market where the availability of contractors to do this kind of civil works is tighter than ever. it is only going to get tighter as we approach the Olympics.

“We need to be much more focused as a city on concentrating where those efforts are spent, and that’s what I hope this new planning scheme in will provide clear guidance on is, where we get the biggest bang for our dollar.”

‘Falling off a cliff’: The ‘disaster’ facing Gold Coast homebuyers

Gold Coast housing supply is “falling off a cliff” as available land dries up, driving prices higher.

Sales data compiled by real estate firm Colliers shows just 55 properties were sold during the first three months of 2024, while around 2000 houses were sold during the same period, down from 2750 just three years ago.

However any significant relief appear likely to be years away, with no new City Plan settled yet for the Gold Coast.

Colliers residential director David Higgins said the scarcity of available land was having a direct impact on affordability.

David Higgins. Picture Glenn Hampson

“If the sales rate of the first quarter continues across the full year, the Gold Coast will have sold 220 lots in 2024, making it one of the worst years for the housing land market on record,” he said.

“The land sales data sounds a clear warning for the Gold Coast housing market that the industry and government can no longer ignore.

“The evaporation of sales in the first quarter of this year is directly related to the massive undersupply of land across the Gold Coast local government area.

“It’s a problem that has been building since 2020 which has seen land prices almost double over the past four years.”

Mr Higgins said there was no indication of any relief on the market and urged both the Gold Coast City Council and state government to work together to deliver housing.

The market is becoming increasingly tight.

“The key driver of lower land sales is that supply has virtually dried up, creating a critical shortage of affordable housing on the Gold Coast particularly for the region’s traditional buyers comprising young families,” he said.

“The lack of land supply can be directly linked to the rental crisis currently facing the Gold Coast and the affordability issues that first time house and land buyers face across the city

“Timelines for getting new projects off the ground are unnecessarily compounding this shortage and while we’re seeing the same issues with apartment developments, ultimately residential subdivisions should still be in the mix as they can put people into new homes much quicker.”

It was revealed earlier this month that housing prices had increased more than 75 per cent in the past four years with new data showing it costs more than $1m to get into much of the city’s property market.

A September report, by property consultancy firm Urbis, warns the city faces the “risk of a dramatic slowdown”, with thousands of units appearing increasingly unlikely to be delivered in coming years despite record population growth and record-breaking sales.

It noted the number of projects launched in the first three months of 2024 was the lowest since the beginning of Covid.

City planning boss Councillor Mark Hammel said developing a new City Plan with the state government was critical to unlocking supply but warned there was no overnight fix.

“The endorsed position of council is to have a new planning scheme in place before the end of 2027,” he said.

“I believe that is the longest we can wait because every week that goes by without a new planning scheme is dwelling opportunities being lost.

“We want this done before the end of 2027 and to do that, we need the state government to commit genuinely to helping us meet that time frame and by ensuring that state resources which are critical to getting this done are not squandered on other things”

Sam O'Connor. Picture Glenn Hampson

Housing Minister Sam O’Connor reaffirm the LNP’s election commitment to deliver more than 1 million new homes across the state within 20 years.

“To build the homes Queenslanders need sooner, our government is prioritising collaboration with local governments to streamline development approvals and accelerate housing infrastructure projects,” he said.

“We’re unlocking a $2bn Housing Infrastructure Investment Fund to support councils, including the City of Gold Coast, with the essential infrastructure – like roads, drainage, and parks – needed to open up more dwellings for development.”