Gold Coast unit prices: New units break $2m barrier as experts warn of ‘big’ supply shortage by 2028

The Gold Coast is falling further behind in delivering its housing targets and driving prices up, with the average new unit now costing an eye-watering sum. FIND OUT MORE

The Gold Coast is falling further behind in delivering its housing targets and driving prices up, with the average new unit now costing above $2m.

Data by real estate firm Colliers warns the supply of new housing is causing a cash crunch in the market, driving prices to the extraordinary new high.

The research shows 2464 dwellings were approved on the Gold Coast between July 1 and May this year, 62 per cent below the 6500 target set by the state government.

“We’re in a classic undersupply cycle – demand is there, but the projects aren’t being approved or delivered fast enough,” Colliers Gold Coast residential director David Higgins said.

Colliers Director David Higgins. Picture Glenn Hampson

“This is placing upward pressure on prices and compressing choice for downsizers, local owner-occupiers, and interstate lifestyle buyers looking to secure a foothold in well-located parts of the city.

“The Olympics have brought long-term infrastructure certainty to the Gold Coast, and that’s translating into real confidence among developers and buyers.

“Areas like Southport and Broadbeach are emerging as true vertical lifestyle precincts – walkable, connected, and positioned for long-term growth.”

The average price of new units has risen dramatically in recent years. In September 2023 it was $1.13m.

Mr Higgins said a variety of factors had led to the latest price surge.

Development isn’t moving fast enough to deal with the population growth. Picture Glenn Hampson

“The ongoing battle with construction costs, planning delays and most importantly, the lack of building has contributed to exploding costs,” he said

“Productivity has taken a real hit and the big projects get badly affected by worker and weather delays and that has just led to the increase

“The problem is the supply and getting affordable projects, where units cost between $500,000 and $1m is now very difficult for medium and high rise developers.

“There’s a big supply shortage coming in the next three years and it is just falling away, so the targets are just not achievable in today’s market.”

The location of the proposed expansion of Dreamworld by Ardent Leisure

The extraordinary new figures come just days after councillors and Dreamworld owner Coast Entertainment called for the state government to use “call-in” powers to fast-track a gigantic development around the theme park precinct at Coomera.

It would feature hotels, high density residential development, function centres and restaurants.

The State Assessment and Referral Agency (SARA) and council imposed conditions on the project – first submitted for assessment in September 2023 – which Dreamworld considers to be “unworkable”.

 Mayor Tom Tate said he and the council had backed the project because it would go a long way to taking pressure off the market.

“If the Deputy Premier (Jarrod Bleijie) calls it in, he can just say ‘Nah green light, go with it’ and the minute I was told that SARA didn’t want us to call it in, I did a mayoral minute on it,” he said.

Mayor Tom Tate and Deputy Mayor and planning boss Mark Hammel Picture: Andrew Potts

“If the Deputy Premier makes a decision, even if it is a quick no, then (Dreamworld) can go and make some adjustments.”

The Bulletin also broke news last week that a Melbourne developer is planning to build a 101-storey residential tower in Southport, which would be Australia’s tallest building.

The developments come after the Property Council of Australia and consulting firm Urbis released a report earlier this month warning the city was falling further behind its housing targets.

Property Council state executive director Jess Caire said there was “significant doubt” over the Gold Coast’s ability to meet targets set out by the Southeast Queensland Regional Plan (SEQRP).

“With a population projected to reach 1.13 million by 2046, it is concerning that 58 per cent of apartments due for completion in 2027-2028 are considered moderate or high risk of delay or withdrawal,” she wrote.

Originally published as Gold Coast unit prices: New units break $2m barrier as experts warn of ‘big’ supply shortage by 2028