Is There a Housing Shortage on the Gold Coast

  • Tags: Property Investment, First Home Buyers, Property Trends, Gold Coast Property

Is There a Housing Shortage on the Gold Coast?

Is there a housing shortage on the Gold Coast?The ANZ Bank at Elanora asked me to speak at a First Home Buyers Seminar they were holding on Tuesday July 4.
One of the interesting perceptions people there had was that there is a shortage of properties for them to buy. I was able to show them that the difficulty they find themselves in here and probably most other prosperous parts of Australia is not the amount of stock coming on the market, it’s the number of people who want to buy it.
Residential sales in Palm Beach, Currumbin Waters and Elanora in the past four years are as follows:

2013                    950
2014                 1074
2015                 1285
2016                 1231
As you can see the turnover in the local area has moved back to the long-term trend which is between 1200 and 1300 sales a year. It has been as low as 670in 2011 and in 2001 was as high as 2200 when there were some major land releases but essentially people in this area decide to sell within that narrow 1200 to 1300 sales a year band.
The big change that has taken place and has created the apparent shortage of properties is the time on market figure. Our First National figures demonstrate how the stock overhang of four years ago has been chewed up by demand.
In 2013 our average time on market, that is between list and contract, was 42 days. In 2017 to date the average time on market is down to 20 days.
The impact of this demand is also reflected in changes in the median price for a house in Palm Beach Elanora and Currumbin Waters over the same period.

2013                 $490,000
2014                 $535,000
2015                 $589,000
2016                 $645,000
2017                 $680,000 year-to-date.
So, we are looking at approximately a 10% p.a. compound interest increase in prices over the time and at present no sign that this trend will quit anytime soon.
I think the conclusion of most of the people at the seminar was that you can't save at this rate and that if you have enough money to get into the market they should do so sooner rather than later. Is There a Housing Shortage on the Gold Coast?
First National Palm Beach
15 Palm Beach Ave Palm Beach, Queensland 4221
Phone: 07 5559 9600