DEMAND is outstripping supply for new houses to the tune of almost 150 homes a year.
It comes as industry experts warn that greenfield sites for new housing on the Gold Coast could dry up in as little as seven years, forcing developers to move on to infill sites.
According to data compiled by independent property analyst Michael Matusik, the Gold Coast is running two months behind in its supply of new housing.
The statistics show demand for new houses outstripped supply by almost 750 over the past five years, with demand for new homes sitting at 20,920 while only 20,172 homes were built.
The report also shows the inner-city Brisbane market faces a dilemma of its own, with an oversupply of new units that will take more than five years to clear at current rates of demand.
UDIA Gold Coast and Logan president Finn Jones said thanks to a complex series of events, the Coast was facing a situation where the next generation could be forced into renting their entire lives.
“It’s a very complex situation,” Mr Jones said.
“The State Government in its Southeast Queensland Regional Report have said there is no more greenfield land being opened up on the Gold Coast so we know how much land is left for development.
“According to the State Government that’s enough for about 18,000 homes. By theirs and council’s estimates, that will be good for 15-20 years.
However, if you speak to some property industry figures, their sales rates indicate that land could be gone in seven to eight years.”
He said current and future residential capacity would need to come in the form of suburban infill projects as noted by state and local planning policies, but many of these were difficult to produce at price points that meet the market.
“The cyclical property industry follows economic factors and employment growth,” he said.
“Larger capital cities generally have a larger and more diverse economic base and therefore generally weather the swings or changes in cycles better.
“The market in Sydney is much larger and the banks will target larger cities because of predictable economic and jobs growth while the Coast gets a little less of the lending pie.
“The cost of producing various dwelling types continues to increase.
“Ultimately there is a tipping point where people earning a median salary for the area simply are unable to get a loan large enough to buy a property.”
He said masterplanned greenfield estates in both Logan and Tweed Heads were the only options close to the Gold Coast for those who wanted to purchase new house and land once the existing Gold Coast estates were gone within the next decade or so.
Council City Planning Committee chairman Cameron Caldwell said the supply and demand of housing was market driven.
“Council has worked hard since 2012 to ensure we are encouraging and facilitating good developments but, in the end, the market will lead the development process,” he said.
Originally Published: http://www.goldcoastbulletin.com.au