Gold Coast Rides Wave of Development

As the Gold Coast continues to attract local and interstate interest, developers are taking advantage of strong buyer demand as Sydney and Melbourne residents look north.

With the end of 2020 seeing a wave of development applications, the latest figures from the Real Estate Institute of Queensland show the two most popular destinations for interstate migration still remain the Sunshine Coast and Gold Coast.

Four projects lodged in the past four weeks include developments spanning from Hope Island on the Gold Coast's northern tip through to Palm Beach on the coast's sought after southern end.

Hope Island

▲ 6 Sickle Avenue, Hope Island.

One of the largest developments lodged over the December period is Aniko Group’s development plans in Hope Island.

Property records show the 6-8 Sickle Avenue site was purchased for $3.5 million in May 2019.

The Archidiom-designed project spans a 8,244sq m site.

Led by George Mastrocostas, the group's proposed project will comprise two apartment buildings standing 8-storeys in height with a total of 185 units and 370 bedrooms. Plans also show a total of 273 car parking spaces.

Palm Beach

▲ 1214-1220 Gold Coast Highway, Palm Beach

Plans for a nine-storey residential building at 1214-1220 Gold Coast Highway, Palm Beach have also been lodged by an entity linked to Daniel Chippendale.

The BDA-designed project will comprise 58 units, located on the corner of Tenth Avenue and the Gold Coast highway.

The 1641sq m sized site comprises four freehold allotments and is currently occupied by a series of double-storey residential brick homes.

Plans for the development show the building has 65 per cent site coverage.

The proposed project includes ground and rooftop communal areas, a pool, gym, outdoor dining, and open terrace areas.

Palm Beach

▲332 The Esplanade, Palm Beach

Another project in the council pipeline is a 14-storey Cottee Parker-designed tower backed by Gold Coast developer Anthony Gordon.

The $140 million development, known as Reef Palm Beach, sits on a 3304sq m site at 332 The Esplanade, also in Palm Beach.

Plans propose 76 apartments across 13 levels along with two basement levels of car parking space.

Gordon picked up the beachfront site late last year for $21 million, in a deal managed by Cushman & Wakefield's Kyle Youngson.

Burleigh Heads

1805 Gold Coast Highway, Burleigh Heads.

Plans are lodged for a 12-storey residential development in development busy Burleigh.

The project, known as Kailua, is bordered by Rudd Park and proposes 55 apartments.

The applicant, Robkel Burleigh Pty Ltd, is linked to David John Roberts, a local Gold Coast resident, and Brisbane based Michael Kelso.

The entity picked up the 1805 Gold Coast Highway, Burleigh Heads site, occupied by a two-storey office building, for $6.7 million in mid-2020.

Project sales

As for recent sales, Brisbane developer Paul Gedoun has plans for a second residential building at Rainbow Bay following the 2020 sell-out of his $74 million Flow Residences project.

The Flow's final luxury apartment sold within three months of the project launching.

And the first stage of the $380 million Kirra Beach Hotel re-development, touted to transform one of the Gold Coast’s most famous pubs into a tower, has clocked $88 million in sales following its official launch to market in late December.

Marketing collateral states that almost 50 per cent of the 118 apartments, which form the $180 million Miles Residence, have sold in the first stage for an average $1.61 million price tag in the three weeks since launch.

The redevelopment, helmed by Peggy Flannery’s KTQ Group, spans a one-hectare site overlooking Kirra Beach.

KTQ Group development director Jeremy Holmes said the cross-section of buyers to date involved 70 per cent from Queensland and 23 per cent from New South Wales, with the mix of apartments including one-bedroom residences priced at $550,000 up to three-bedroom residences priced at $3,000,000.

'Record lows': Gold Coast rental market

According to the Real Estate Institute of Queensland, the two most popular destinations for interstate migration still remain the Sunshine Coast and Gold Coast.

Citing liveability, affordability and lifestyle along with economic opportunities and education, the Sunshine Coast’s rental market is firmly gripped at 0.3 per cent, shows the REIQ's latest vacancy data for the December 2020 quarter.

Areas such as Buddina (0.3%), Caloundra (0.3%), Maroochydore (0.5%), Noosa (0.4%) and Sunrise Beach (0.5%) have continued to tighten marginally over the past three months.

As for the Gold Coast market, REIQ chief executive Antonia Mercorella says rental properties are being “snapped up across all regions”.

Surfers Paradise recorded more than 2,100 vacant rentals at the peak of the pandemic nine months ago, and currently has 0.7 per cent stock availability, with its rental market now rebounding beyond pre-Covid levels to reach a new record low.

Record low vacancies have also been reported across the Gold Coast region.

In the north, which has a median vacancy of 0.6 per cent, stocks have reached all-time lows in areas such as Arundel (0.6%), Labrador (0.7%), Oxenford (0.1%), Runaway Bay (0.5%) and Southport (0.7%).

And on its southern end, a median vacancy of 0.3% across suburbs including Broadbeach (0.8%), Currumbin (0.3%), Miami (0.2%), Palm Beach (0.3%) and Varsity Lakes (0.6%).

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Article originally posted at: https://www.theurbandeveloper.com/articles/gold-coast-rides-development