The post effects of the global financial crisis are starting to be felt by Queensland’s property market.
According to the latest Midwood Report, Brisbane has recorded the lowest number of unconditional high-rise developer sales in 18 months at 133 new sales for the three months ending November.
In addition, sales of new apartments throughout Queensland’s major regions have almost halved to a total of 393 sales in the three months ending 30 November 2010, compared to 831 sales in the previous corresponding period.
Midwood Report author Bill Morris said unconditional sales in new developer high-rise apartments plummeted to just 47 in the Gold Coast, the lowest on the report’s records since the November 2008 quarter, during the GFC.
“High-rise developer stock on the Gold Coast has fallen substantially, from a peak of 1,383 apartments at 30 November 2008 to 792 at 30 November 2010,” Mr Morris said.
“This is the result of some mortgagee stock being taken off the market, as well as lower number of completions over the past two years.”
According to Mr Morris, the GFC is still alive and present in Queensland as financers await settlement success rates on existing projects before lending on new projects.
“There has been trepidation regrading the outcome of settlement success rates at Oracle at Broadbeach and Hilton at Surfers Paradise on the Gold Coast. However, both the developers and their funders are reporting a high proportion of settlements,” he said.