Issue 17 | August 2nd, 2018 | Australia’s fastest growing region: The Gold Coast
There has been a significant pickup in sales activity over the past 10 days as we have enjoyed some breathtaking weather. The weather on the Gold Coast has been nothing short of perfect.
It is also interesting to keep a really clear perspective on fundamentals that will continue to drive our Gold Coast property market. There is currently about 577,000 people who live here and this is predicted to grow by 12,500 new residents per annum. There is a need to build about 5,000 new dwellings per year and that growth in new dwellings is spread quite evenly across a variety of age groups; around 12% needed for young renters housing, around 24% for 25-39 year old first home buyers, 22% for 40-54 year old upgraders, around 26% for 55-74 year old downsizers, 14% for retiring 75-84 year olds, and the remaining 2% in aged care.
This translates into five groupings of style of properties needed to be built. Traditional detached housing is about 15%, small lot homes about 23%, townhouses around 20%, apartments around 40% and retirement villages or aged care around 2%, or, to break that in to numbers, about 750 traditional detached housing per annum, 1150 small lot homes, 1000 townhouses, 3000 apartments and about 100 retirement style properties.
Looking at current construction, the Urban Development Institution of Australia states that the current rate of construction on the Gold Coast needs to pick up by at least 37% to supply the housing needs of our growing population which continues to be the fastest growing region in Australia.
Rather than a pickup in construction, the Australian Bureau of Statistics shows in the latest reports that approvals for new home construction is actually in decline, falling from around 296 per month to currently to 220 per month. That is certainly the wrong trend. Much of this has been put down to access to affordable land and the other is simply a labour shortage in terms of not being able to find a sufficient number of tradies needed for this construction.
WHERE ARE PEOPLE TURNING INSTEAD?
It is no surprise that we are seeing more people having to take up an option of an apartment as opposed to perhaps townhouses and other developments that might have been their preference simply because there are more apartments to choose from than their preference, and hence the stronger demand for larger apartments than have traditionally been built. This has been demonstrated by the recent release of the new Spirit building that is providing apartments nearly twice the size than what most new buildings have built in recent years. This has been a strong reason why they have recorded so many sales over the past couple of weeks.
This is certainly interesting information and it shows how strong the fundamental demand is for the real estate market on the Gold Coast which will continue to provide the fundamental support for a strong market for many years to come.
THE GOLD COAST’S PREMIER CHARITY EVENT
Just a quick mention now. The Ray White Surfers Paradise Group is proud to be leaders in our Gold Coast community and especially in the space of caring for our less fortunate. We are coming up quickly on some $4 million we have raised for various community causes; with our primary one the support for the young children with Muscular Dystrophy and a significant contribution to the research to eradicate this dreaded disease. What is regarded as the Gold Coast’s best Ball of the Year will be on the 22nd of September at Star Casino. We have already sold out of Platinum and Gold Tables but we still have room for more in our Silver Tables at $2,300 and our Bronze Tables at $2,100. Why don’t you join us? You will have a great time. Click here to find out more information. We already have over 600 people booked in and a great night of entertainment lined up. Be part of a Gold Coast community event that does amazing things for those less fortunate in our community.
Well, the first month of this new financial year done and dusted and when I am with you next in a fortnight’s time we will be in the last month of winter. We have put brought forward a great selection of some fantastic properties, both residential and commercial, for your pre spring selection. I really encourage you to have a look at what we have in this week’s eNewsletter. A great selection of real estate for our buyers to ensure you can find your property before the surge of buyer activity gives you stronger competition in the spring months.
That is it for this fortnight. Stay safe and let’s be kind to one another. See you in a fortnight’s time.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group