The tide of densification is slowly but surely washing beyond the Gold Coast’s beachside strip and into some of the city’s blue-chip waterfront enclaves.

Plans for a luxury 21-villa townhouse development have been filed for a 4869sq m site fronting a tributary of the Nerang River at Bundall.

If approved, the proposal would replace a sprawling six-bedroom two-storey mansion and a single-level three-bedroom home spanning a combined six lots at 16-26 Mercedes Place.