Friday, March 4, 2011

"Pressure Grows on Gold Coast"

Headline in AFR on Thursday: "Pressure Grows on Gold Coast".

"Receivers are expected to add almost 500 units to the beleaguered Gold Coast market this year, increasing pressure on one of Australia's most fragile residential sectors. ... Many just completed projects were aimed at the middle to high-end and sold at the peak of the market in 2007. The GFC wiped 20 to 50% off values in some cases with the glut of new high-end stock forecast to cause further double-digt price reductions... ... 122 new apartments were sold in the December quarter. "

SQM Research is quoted: "We see this market as being highly susceptible to any further interest rate rises, which could mean that bargains found today could certainly be an even greater bargain tomorrow."

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