The perfect storm of rising construction costs, labour shortages and population growth is creating a lucrative opportunity for landholders and developers on the Gold Coast.

Kollosche Commercial sales agent Adam Grbcic says those in a position to sell should act swiftly to capitalise on shifting market conditions, with demand strongest for smaller, developable pockets in key locations.

According to a recent report by consultancy Urbis, about 53 per cent of the city’s approved apartment projects are currently at risk.

“As construction costs rise and labour shortages persist, many projects on the Gold Coast are facing delays or the possibility of being scrapped altogether,” Adam says.

While the trend may appear to be a setback, Adam says for those developers in a position to move forward, it presents a unique window of opportunity. 

“The significant slowdown in new apartment supply is creating a scarcity that will ultimately drive-up demand and prices within projects that do proceed.” 

Adam says that developers who can navigate the challenges stand to benefit immensely. 

“Those who act now can expect to see higher prices and greater returns, as competition lessens and the demand for product continues to grow,” he says.

The population of the Gold Coast is projected to surge in coming decades, with high-rise apartments expected to make up 60 per cent of new housing by 2046. 

Land scarcity and a demand for density are transforming the city’s skyline, making this the ideal time to invest in high-rise developments. 

Also worth consideration, says Adam, is the strength of the local apartment market, where median prices have increased more than 76 per cent over the past five years. 

“The Gold Coast has transitioned from oversupply to an extreme undersupply, leading to stronger capital growth and rental returns. 

“The long-term price growth in many suburbs ranges from 4.1 per cent to 11 per cent, making the market highly attractive to developers and investors.”

Adam says landholders who sell now will capitalise on these market conditions, with a premium price ensured within the competitive environment. 

If you would like to discuss how to maximise the value of your land, contact the Kollosche Commercial team who can help you navigate the market and optimise opportunities.