Highrise development shortage in Gold Coast
While Surfers Paradise is among the areas previously known for having a strong amount of high-rise construction activity, it’s now quickly becoming known as an area with a shortage, according to research from Broad Research and Advisory.
The precinct has recorded its highest rate of new apartment sales since the GFC, with 1,151 over 2012/2013 financial year.
Paul Broad said that a critical shortage of new apartments is being seen in the area as buyer demand has heated up, with just two new projects marketed in the area.
The Soul and Hilton towers, the two projects being marketed, are complete. Within these two developments, 90 were reportedly available in Soul, and 35 are for sale in Hilton.
“The decline in the number of apartment sales in Surfers Paradise predominantly relates to the lack of new apartment projects entering the market in the past few years and the take up of stock as these projects have been completed for some time,” said Broad.
“It has been many years since the Gold Coast has witnessed such an absence of crane activity, particularly in the high-rise sector and particularly in Surfers Paradise where the absence of new projects is unprecedented.”
Across the entire Gold Coast, there are 12 actively marketed high-rise apartment projects, with just three not yet constructed.
“Including low and medium-rise product, here are 38 active apartment projects on the Gold Coast, making it the city’s lowest number of active developments in 11 years,” he said, pointing to apartment stock primarily located in Southport and Broadbeach.
"Furthermore, of these 38 projects, 15 have stock levels in single digit figures,” Broad said.
“Some areas of the Gold Coast have virtually no new stock and based on the current quarterly sales rate, existing supply will be absorbed within 12 months.”
A $120 million apartment tower, progressing towards construction, with 223 beachside apartments on Surfers Paradise Boulevard is, however, coming online.
“Recent projections from the Australian Bureau of Statistics suggest that the Gold Coast may need to create 146,000 new dwellings by 2026,” he said.
Surfers Paradise's vacancy rate has been declining from recent highs nearing 6% and currently sits at 2.5% according to SQM Research.