Gold Coast property market: Urbis report’s ‘alarming’ warning about future of stalled projects

A shock new report has delivered an ‘alarming’ warning about the future of more than half the high-rise unit towers proposed for the Gold Coast. FIND OUT MORE

More than half of all apartment towers in the Gold Coast pipeline are at “moderate to high risk” of being abandoned or delayed in the next two years, a shock report has revealed.

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

Urbis director Paul Riga blamed “cost constraints” for the already slowing market, with the number of projects launched in the first three months of 2024 the lowest since the beginning of the Covid pandemic.

Paul Riga

“While we’re seeing a consistent number of development approvals, the red flags that indicate a potential slowdown are the increasing number of projects that simply aren’t advancing to formal sales or construction phases,” he said.

“Based on the growing volume of approved but inactive projects, the supply of new apartments in the Gold Coast could fall from 1900 units in 2025 to 1400 units in 2026, with only 50 units being relatively certain to be delivered in 2027.

“It’s an alarming prospect for a city tasked with shouldering the supply of 4500 new dwellings each year under the South East Queensland Regional Plan.”

It comes just days after a new report by Colliers International revealed much of the unit stock due for completion was already sold as far back as 2021, meaning there is nothing waiting in the wings for eager buyers.

Development is not keeping up and tens of thousands of units have been greenlit but never built.

A new Urbis report is warning of a dramatic decline in the number of units on the market. Picture Glenn Hampson.

The high migration rate, combined with a lack of available land or new units has seen property prices spike.

A report released by Ray White last month showed house prices had increased nine per cent in the past year, above the national average of 8.5 per cent. The media price is $1.17m, second only to Sydney’s median of $1.7m.

Jess Caire, state executive director of the Property Council of Australia, said it was critical the market was reformed to unlock tens of thousands of units which have been proposed but not yet built.

“Cost burdens are placing enormous constraints on delivery program, not only the cost of construction, but the cost of increasing – and uncompetitive – taxes, and infrastructure that isn’t aligned with planning,” she said.

Jess Caire Queensland Executive Director Property Council of Australia Picture David Clark

“To provide the housing we all deserve, we need to welcome the investment Queensland needs.

“This means meaningful tax reform that places secure housing back within reach of Queenslanders, and better aligning planning and infrastructure delivery as part of a co-ordinated approach to growth.

“In the lead up to the election we need to see big, bold commitments from both sides of government.

There are growing calls for government intervention in the property sector Picture Glenn Hampson.

“This includes expanding the Incentivising Infill Fund from a one-off, $350m fund to an annual $500m commitment that will encourage further development in under-utilised locations with the greatest housing demand.”

Council planning boss Mark Hammel said the data underlined the challenge the city would face in coming years,

“This only reinforces why developing a new planning scheme as quickly as possible is so important,” he said.

“Creating more dwelling supply will require a joint effort between council, the state government and the development industry.”

Originally published as Gold Coast property market: Urbis report’s ‘alarming’ warning about future of stalled projects