Bargains available in over-supplied Gold Coast market

By Terry Ryder, 31st March 2010

Unsold apartments equal to two and a half years stock are languishing on the Gold Coast market. According to the Midwood Queensland Investment Report, cash buyers can secure apartments at a 30% discount to the asking price.

The Midwood Report says there are 1,000 medium and high-rise apartments for sale on the Gold Coast. It says this equates to two and a half years' worth of sales, partly caused by leftover stock in projects which have gone into receivership.

It means buyers can secure a good deal, particularly in the price range from $600,000 to $3 million.

Report author Bill Morris says prices for new apartments have dropped by up to 20% in the past 12 months. He predicts prices will continue to fall while supply remains high, perhaps for another two years.

Buildings with large numbers of apartments still to sell include Southport Central, Soul, Victoria Towers and Brighton on Broadwater, which each have over 100 unsold apartments.

The Midwood report confirms a theme often articulated by the hotspotting.com.au website and its reports, including the Iconomics report – that the Gold Coast has an over-supply of dwellings, a regular feature of the Gold Coast market and a key reason while long-term capital growth rates are poor.

ENDS