Developers plan to add to Gold Coast surplus

By Terry Ryder, 8th November 2011

Sales of residential land and new houses continue to be sluggish on the Gold Coast, where over-supply is the dominant feature.

Despite the current poor sales rates, Gold Coast developers plan to lift production in 2012.

The latest Prodap Report says sales improved by just 4% in the September quarter. It says only two projects are selling more than eight lots per month.

“Our regular direct survey of over 150 active land and housing developers operating in the Gold Coast LGA has shown that a surprisingly high number of developers expect to produce over 100 lots over the next 12 months,” says report author Bill Morris.

“The survey has shown that although low sales volumes currently prevail, there is an air of expectancy by developers that new production is needed at a level three times current demand.”

Morris suggests the development industry expects further interest rate cuts and hopes this will re-ignite the market.

The report also says that the State Government’s $10,000 rebate for new houses under $600,000 has had little or no impact.

“The Reserve Bank has been out of touch with the property market for some time and no amount of token rebates from governments can overcome that”, says Morris.

 ENDS

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