PROPERTY PORTFOLIO
2022 MARKET UPDATE WITH STEVE HUNT | MEDIAHUNT.COM.AU
LESS PROJECTS, LESS SUPPLY More new projects are needed to meet demand.
Côte Palm Beach
Aniko Chevron
SOUTHEAST QUEENSLAND’S property market is slowly transitioning from the boom of the past three years, but it’s not a bad thing. The latest ‘correction’ – if we want to call it that – is much needed. The number of projects sent into council across the Southeast, particularly the Gold Coast, was unsustainable. Migration has been incredibly strong and I believe this will continue as part of the psychological by-product of Covid – people fast tracking their lifestyle and retirement plans which inevitably leads them to Queensland. The slowdown in new projects coming to market has also seen a reduction in supply despite the fact that migration is still strong and people are continuing to move here. This is reflected in data from Colliers which shows apartment prices are not only holding firm
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but in fact have risen during the second quarter of 2022. Data shows the average price paid for apartments was $1.117 million – or 3.8 per cent higher than the previous three months. In the nine months from the 2021 September quarter to the March quarter this year, there was a 104.4 per cent increase in apartment sales, with 396 sales of new apartments in this quarter alone. Apartment sales in the 18 months to June this year have all been significantly higher on a quarterly basis than the preceding 18 months – reflecting sustained demand in the market even through the first two interest rate increases. This demand is being driven by very strong fundamentals, with the report showing only five and a half months’ supply of apartments based on current take up rates.
With supply constraints and demand at an alltime high, apartment prices will continue to drive higher on the Gold Coast in the near term despite the slowing economy. Director in Charge of Colliers Gold Coast, Steven King, says the findings are reflective of the Gold Coast’s product shortage, rising demand and continuing market strength. “Supply of new apartments is falling due to the increased cost of construction, which for high rise apartment projects over the last 16 months has risen by more than 25 per cent,” said Mr King. “Demand for new apartments remains solid but with a reduced supply of new projects and apartments, we expect apartment prices to continue rising especially if the supply shortage becomes more critical.” Record high demand is meeting record low supply, led to an acute shortage of new apartments .
