Gold Coast land sales rise; supply

Posted on 15/07/2009  

The Gold Coast market for residential land and house-and-land packages showed a major lift in sales in the March Quarter 2009, according to a Prodap report.

It says vacant land sales increased 78% (compared to the previous quarter) to 383, while sales of house-and-land packages (including townhouses and duplexes) doubled to 159.

Prodap’s Bill Morris says his research indicates that the December 2008 Quarter was the bottom of the market on the Gold Coast, with a turnaround beginning early in 2009.

“In nine of the Gold Coast’s top 10 projects measured by sales volumes, the number of sales showed strong growth in the March Quarter,” he says. “Developer Stockland showed steady growth over the three months, recording 259 land sales across five projects on the Gold Coast. Stockland secured 67% of the Gold Coast market over the period and improved their December 2008 result by 109 sales, or 73%.”

The biggest increases in sales occurred in Gaven and Upper Coomera, both on the northern fringe of the Gold Coast. Morris says Coomera Town Centre is the next development hub comparable to Robina on the Gold Coast but its development has been hampered by uncertainty regarding Council’s vision for housing. Ultimately, however, the precinct is expected to house 45,000 people over the next ten years.

Prodap says there were 1,217 vacant home sites available on the Gold Coast as at 31 March, the equivalent of nine months’ supply at the current take-up rate. Morris says this is a low level of supply, given the long lead times for approvals and production. The available supply of house-and-land packages was 609, close to a year’s supply.

“Stock levels are considered to be critically low, given that the market is showing improvement,” Morris says. Forecasts by developers for production over the next 12 months are low at 2,960 vacant lots and 891 dwellings, totaling 3,851.

“These figures are much less than the usual underlying demand of 6,000 per annum,” Morris says. “In the current climate, uncertainty regarding bank funding is a major consideration for developers.”

ENDS

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