THE CEO of listed developer Sunland has conceded the Gold Coast is facing a property affordability endemic that could potentially worsen to that faced by the market in Sydney.
“Australia is treading into a dangerous area, there is a crisis brought about by the affordability issue and it has been very evident in Sydney over the last six years,” says Sahba Abedian.
“There is an endemic undersupply not seen since the Second World War. The issue cannot be abated because the cost of land and building these projects is what it is.”
The comments come as Sunland revised its end-of-year profit by adding a further $3 million to its forecast, totalling between $17 million and $18 million.
The revised guidance (from $15 million) follows a review of settlements on its house and land projects within Australia. Early settlements are expected from between now and June 30. The forecast profit follows a net loss of $145 million in ‘09 as the financial crisis battered sales.
The developer of landmark structures Q1 and Palazzo Versace has scaled back the magnitude of its projects to concentrate on residential communities with product priced from between $300,000 and $750,000 in South East Queensland and Victoria.
A report from the Master Builders Queensland shows that new houses price $350,000 plus is not affordable for the average Gold Coast household income, while properties above $600,000 were deemed critically unaffordable.
Over the 12 months, Sunland will launch 10 new projects at Sanctuary Cove, Royal Pines Resort, The Glades, Cassia, Peregian Springs, Pacific Pines, One Marine Parade, Labrador and Amytis in NSW.
Sunland will expand its presence within the master-planned Pacific Pines residential estate with plans to build a $34 million townhouse project for 85 dwellings; residential projects at Sanctuary Cove; The Glades at Robina and the former Devine French Quarter tower Carrington in Brisbane for a landmark structure.
“Sunland has always operated in residential land and house projects, but the towers such as Circle on Cavill and Q1 have stolen the limelight,” says Abedian.
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