Gold Coast Premium Apartment losses

The major banks are now reviewing the Gold Coast million plus market.

The Banks major concerns would be the three large developments  ( Oracle, Hilton and Soul) coming to finalisation now and over the next 12 months that will see approximately 800 $1millon+ apartments hit the Gold Coast market. This level of new stock may take many years to absorb under current market conditions.

Pre-sale contract values in some cases will be years old and significantly greater than the current realistic market value. Settlement risk is a major issue for developer ( vendor) financiers as is purchaser funding risk given the market value diminution.

We expect some fire sales, and the top tier of the apartment market will be worried about the immediate future. If you are currently looking to purchase a premium apartment on the Gold Coast make sure you do your due diligence and purchase wisely in the current environment.