New developments dry on the coast
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|Friday, 20 August 2010|
Gold Coast development activity has remained relatively unchanged over the last three years, despite economic changes, according to a report.
Property market research company Prodap has found that aggregate sales volumes of new developer stock grew just marginally over the last financial year, from 1,913 in FY 2009 to 2,041 in FY 2010.
In FY 2008, aggregate sales volumes on the Gold Coast sat at 1,991.
Report author Bill Morris said sales volumes should really be up around 6,000 per year to sustain normal population growth (of approximately 15,000 per year).
"There is currently pent-up demand occurring, which eventually will lead to a rise in average prices for new product," Mr Morris said.
"We have already seen the mean average house price reach $600,000 on the Gold Coast, and it will get higher."
"The low level of stock will stimulate demand in the coming months, leading to rising prices and a peak in the property cycle in late 2011 or early 2012. But the peak will be much lower than the previous one experienced on the Gold Coast in 2003-04", Mr Morris said.