Despite what local estate agents are telling prospective buyers sales of Gold Coast high-rise apartments are so slow it would take five years at the current rate to absorb even existing stock.
Even though there are less than 800 high-rise apartments on the market on the Gold Coast, property researcher Bill Morris, of Midwood, said that with a current sale rate of about 47 apartments per quarter even that low number would take a long time to clear.
Mr Morris added that sales rates were at their lowest level since the 1990s. Even though there were not many new projects planned for the Gold Coast high-rise market, demand had still not picked up substantially.
“While the rate of sale can change there is something like five or six years worth of stock,” he said.
Mr Morris believed the market could not be revived by local developers and would recover only once overseas investors came back.
He said the Gold Coast needed to entice cashed-up foreign developers to reignite the construction industry as local developers could not get the necessary level of funding.
As always, the Gold Cost is a great place to vacation, and may be a good place to live, but it is too volatile for investors. For years the property cycle has had huge swings from booms to busts. Don’t look for excitement in your property investments. Let your investments be boring, so the rest of your life can be exciting.
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