15 July 2009
The Gold Coast residential land and new housing markets are experiencing a significant turnaround in sales activity, new research by Prodap shows.
Vacant land sales jumped by 78 per cent in the March quarter, 383 lots more than the previous quarter. While sales of house and land packages (including townhouses, duplexes and villas) increased by 103 percent to 159 lots, the report found.
"The findings indicate that the bottom of the housing market occurred in the December 2008 quarter and began to turn around in early 2009," research leader Ben Morris said.
"In nine of the Gold Coast's top-10 performing projects, measured by sales volumes, the number of sales showed strong growth in the March 2009 quarter.
Leading developer Stockland, showed steady growth over the three month period, recording 259 land sales across their five projects located on the Gold Coast. Stockland secured 67 percent of the Gold Coast market over the period, improving its December 2008 result by 109 sales, or 73 percent.
The locations of the sales increases were spread across the Gold Coast, with a significant increase in sales occurring in Gaven (Pacific Pines) and Upper Coomera, both on the northern fringe of the Gold Coast.
According to Morris, forecasts by developers of production over the next 12 months are low at 2,960 vacant land lots and 891 dwellings, totalling 3,851.
"These figures are much less than the usual underlying demand of 6,000 per annum," Morris said.
"In the current climate, uncertainty regarding bank funding is a major consideration for developers."
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