Issue 06 | Thursday 25 March 2021 | Property Supply vs Demand
Hi, Andrew Bell here and I am thrilled to be coming to you today from this exquisite home at 15 Westminster Court, Sovereign Islands. This property is in a league of its own in a prominent point position of Sovereign Islands with 31m wide water frontage including 6-bedrooms, an 8-car basement, and a 12m pontoon providing bridge free boating access to the Broadwater. There is simply no comparison to this home. Have a good look through as I provide some more market updates.
You will recall in my last report that I addressed the question of whether there was a stock shortage in the marketplace, and I was able to show that was not the case in reality. I also touched on the five fundamentals that drive the real estate market and whilst the majority are a green light for real estate 1 fundamental starts to dominate, and that is consumer confidence. The fundamentals to keep an eye on at the moment are housing affordability, the economy, and most definitely real estate financing or particularly the introduction of perhaps a tightening of lending criteria’s by the Reserve Bank. I also mentioned in my last report that there is another layer of factors that drives the real estate market, and that is supply and demand. I think we have covered demand more than sufficiently over the past few reports so let’s have a look at supply here on the Gold Coast.
Housing approvals nationwide over the six months leading up to January started to decline as we saw the end of the $25,000 home builder stimulus payment from the Federal Government which turbocharged that sector last year. Standalone home approvals fell 11.2 percent in January although still reasonably high on previous figures with some 12,390 approvals in January. Whilst a slump did show up in detached housing, most significantly there was a 39 percent plunge in approvals for apartments, semi-detached dwellings, and townhouses. When averaged out between detached housing and the rest, this showed a significant 19.4 percent decline.
We have just had some figures released from on the Gold Coast building activity, and it was of course before the end of the Government stimulus, but it showed 1,280 development applications were received in the quarter to December 2020, which is up 10.2 percent on the same period of 2019. In the first six months of the 2020/2021 financial year, 2,393 development applications were lodged which is certainly good news given regional records show there is more than 10,000 people moving to the Gold Coast annually. However, will these numbers hold up? Only time will tell.
So, there you have it. Between my last report a fortnight ago and this one today, there are certainly a lot of factors to keep a close eye on. However, most of them change from month to month and that is why we get some periods of consistency in the real estate market but also why more times than not we have variations in the real estate market. We need to monitor these activities regularly to see how cycles are developing. It is about riding those cycles. Knowing when to buy and knowing when to sell that leads to financial gain in the real estate markets.
I hope you have enjoyed inspecting 15 Westminster Court. It is a remarkable home with carefully curated interiors and sophisticated living areas which captures spectacular sunsets. It has that real timeless elegance and the attention to detail right throughout the home is quite extraordinary. The alfresco waterfront terrace with its outdoor kitchen will be one of the centrepieces for a relaxed family lifestyle and entertainment, and a 1,000-bottle temperature-controlled wine cellar will certainly keep you at home. The video could never do it justice so for an inspection contact our marketing agent, Matt Gates, via his details on screen now. It ticks every box for someone looking for an exquisite home in one of the best positions on the Gold Coast.
I would also like to thank all of those who attended what was the first fundraising community event on the Gold Coast since COVID hit, and that was of course the Ray White Surfers Paradise Business Meets Sport luncheon. We raised over $60,000 to provide vital rescue equipment for our magnificent Surfers Paradise beach which is where the great majority of our tourists come to enjoy the essence of the Gold Coast, the beach. With a few deaths earlier this year being able to provide new technology to the range of rescue equipment will provide greater safety for you, your family, and fellow Australians this year. We could not be prouder to play our part in protecting the lives on our beachfront.
I look forward to being with you in a fortnights time when we will be conducting the Autumn Selection auction with another wonderful array of Gold Coast properties on offer.
Until then, let’s look after one another.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group