"Gold Coast Sinking in Units Glut"
- 2000 apartments worth an estimated $2 billion listed for sale
- few buyers
- dire oversupply
- only 300 apartments are selling on average each year
- between 5 and 7 year supply of apartments
- high asking prices and a reluctance by banks to lend had compounded the oversupply problem
- NAB less likely to lend to the Gold Coast apartment market
- Mr Korda, receiver for The Oracle, estimates average apartment price for the past 10 years has been about $400,000, while the average price for an Oracle unit is $1.2M.
- Soul will add to the glut, where the average asking price for the top third of the 77 storey building is $3.87 million.
- "If you have a $1 million apartment, you could probably only get bank finance for $360,000" Mr Korda said.
- Its a price point and liquidity issue.