Thursday, November 18, 2010

Gold Coast Collapsing

Story from the AFR on Friday last week - "Banks judge Gold Coast apartments as vulnerable".

"Westpac Banking Corp has a particularly cautious view, especially of luxury properties worth more than $3M on the Gold Coast, which is described as a key area for 'additional risk management focus'. There are hundreds of apartments on the Gold Coast priced at more than $3M. At the Oracle development at Broadbeach, there are at least 50; at two other projects coming to completion - Juniper's Soul and Brookfield's Hilton - there are more than 100."

Story from The Australian today: "Gold Coast High Rise Stress Underestimated"

"MAJOR bank Suncorp estimates that less than 10 per cent of buyers are defaulting on several major apartment projects on the Gold Coast.

Gold Coast property agents have claimed the estimate was extremely optimistic. ...

"They'll be celebrating in the streets if it's only 10 per cent default," one Gold Coast agent said.

"There's a lot of rumours around about settlements, but it's all looking very slow."

Soul has been on the market for five years and, while the market boomed for the first three of those years, the global financial crisis cut the value of these units substantially."

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