Gold Coast property market: Huge changes to apartment sales after record year

Huge changes to the Gold Coast property market will spell disaster for renters, with a new report revealing they will face “one of the tightest markets in the country”. FIND OUT WHY.

VACANCY levels in the Gold Coast apartment market is at its highest level in more than three years but the slowing construction sector will leave the city short of units for years to come.

A new apartment essentials report by property consulting firm Urbis has revealed sales declined in the final quarter of 2022, with the amount of stock remaining on the market jumping up.

More than 280 sales were recorded between September and December last year, down from 336 the previous quarter and down from 610 during the same period in 2021.

Senior Consultant Urbis, Lynda Campbell. Picture: Scott Fletcher

Urbis senior consultant Lynda Campbell said the market conditions were changing.

“Supply across the Gold Coast increased during Q4 2022 ending with 1215 new apartments remaining for sale,” she said.

“The remaining supply is centred in Surfers Paradise which is holding around 70 per cent of total remaining new apartment supply while a further 20 per cent is in Broadbeach, leaving the remainder of the Gold Coast in under supply.

“Over the last three years, 100 projects have been launched across the Gold Coast, containing 7760 new apartments while currently there are around 5800 apartments under construction with around 3000 due to completion in 2023.”

Surfers Paradise Hi Rise buildings, part of the Gold Coast Skyline. Picture Glenn Hampson.

The report, which will be released today, reveals:

• 1389 units were sold in 2022, down from 2492 in 2021.

• A series of large-scale projects are hitting the market this year, compared the primarily boutique developments with smaller unit numbers which have been sold in recent years.

• Overseas buyers are gradually returning to the market, with real estate agents reporting a growing number of inquiries.

Ms Campbell said the real estate and construction industries faced significant headwinds going forward.

“The litmus test will be the ability of these projects to enter construction phase, with issues such as construction costs and labour availability impacting delivery, while interest rate rises and inflation are impact buyer sentiment,” she said.

“Three projects have been withdrawn from sale or placed on hold recently and qualitative insight suggests there are likely to be more throughout 2023 while projects are being closely scrutinised by developers and financiers to ensure product on offer is meeting market demand, and new funding arrangements are being explored.

“Ultimately new launch activity is expected to slow overall, which will further impact dwelling delivery in a market that is behind on dwelling targets, and indicating one of the tightest residential vacancy rates in the country.”

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