The Commonwealth Games has pushed the Gold Coast property market to new heights, but now there are concerns the city won’t be able to keep up with housing demands.
Industry experts believed the market had gained momentum since it was thrown into the worldwide spotlight in April.
Ray White Surfers Paradise chief executive Andrew Bell said the bustling market since the Games had made it clear there was a shortage of stock.
“We certainly saw some reduced activity during March as everyone got prepared for the Commonwealth Games, but now there is greater buyer demand than there are properties for sale,” he said.
“The city’s property market is riding the irreversible momentum that has now come to the Gold Coast in terms of economic diversity and with more employment options we will need more housing options for people,” Mr Bell said.
Referencing research by property analyst Michael Matusik, Mr Bell said there were 19,000 new dwellings registered for sale over the past five years but 24,000 were needed to handle population growth.
He said there were about 9250 new dwellings or lots approved but not yet developed or registered for sale, which equated to less than two years’ supply.
“However, if we were to assume that the 5000 undersupply of the past five years was to be absorbed, then the real new housing supply drops to just 10 months, which is an acute shortage,” Mr Bell said.
He said the Games heralded a new chapter for the Coast as it evolved from a tourist town into a vibrant city with an expanding economy.
Read more of the realestate.com.au article here.