Gold Coast catching $30b development wave

The Gold Coast will be in the midst of a $30 billion pipeline of private and public development over the next decade, dissolving any chance of a post-Commonwealth Games slowdown.Research prepared by Ray White Surfers Paradise (RWSP) Group, the city’s largest real estate company, has revealed nearly $20 billion in housing and apartment projects to meet the city’s ongoing growth.Research undertaken by property consultants Urbis reveals a further $10 billion in public and private infrastructure underway or planned for the city post Commonwealth Games.The ongoing strength of the Gold Coast development and construction scene was highlighted late last month with Star Entertainment Group announcing plans to invest up to $3 billion in a multi-tower development on its Broadbeach site.RWSP CEO Andrew Bell said there was so much more to come for the Gold Coast beyond the Commonwealth Games.“The staging of the Games heralds the beginning of the next chapter of the Gold Coast’s evolution from a tourist town into a vibrant city with an expanding multi-dimensional economy,” Mr Bell said.“To see a hospitality and gaming giant like Star committing to a decade-long rollout of a $3 billion masterplan on the Coast really highlights the confidence and belief in this city’s future.“And the extent of public and private investment outlined in our report just reinforces the amazing future that the Gold Coast will have heading into the next decade.”RWSP’s residential development data reveals almost $15 billion in projects ranging from apartments to house and land developments across the Gold Coast which will be rolled out in coming years.The figures include the $1 billion Jewel towers in Surfers Paradise, $1 billion Pacific View Estate in the hinterland and Mirvac’s $1.3 billion Gainsborough Greens in the city’s rapidly growing northern corridor.Mr Bell said the significant residential pipeline came after a protracted post-GFC lull in development when very little was added to the Gold Coast’s stock of new housing and apartments.“There’s extremely high demand for housing on the Gold Coast thanks to strong population growth and the shortfall in new homes and apartments coming to the market over the past decade,” he said.“As a result of the hiatus in development, we’ve had rental vacancy rate sitting at around one per cent for some time as well as significant pent-up demand for residential land in many areas of the city.“In many ways we are playing catch-up to areas like Sydney and Melbourne which have experienced enormous price growth and development whereas on the Gold Coast the growth has only been measured.“That’s great news as there is tremendous opportunity for capital growth heading into the future and we are seeing southern state money coming to the Gold Coast for that reason – there is great value here and great diversity of residential product.”Mr Bell said the Gold Coast with a population of less than 700,000 was blessed to have the amount of investment occurring in the city.“A city of 3-4 million people would be thrilled to have this level of investment taking place. The amount of money being spent here for a population of only 680,000 is incredibly significant,” he said.On the infrastructure front, Urbis’ just released Gold Coast Infrastructure Report reveals more than 250 projects are being rolled out or are planned across multiple sectors, most prominently transportation, tourism, retail, health and services.They include the $615 million third stage of the Gold Coast Light Rail, $500 million Westfield Coomera Town Centre, the $385 million Gold Coast Cultural Precinct, and the second stage of the Gold Coast Airport’s $300 million masterplan.Report author Lynda Campbell said well over half of the infrastructure spending was public and many of the projects would be undertaken over many years.“These projects will drive future investment and have lasting affect in and around the areas on which they touch,” Ms Campbell said.“While $2.4 billion in infrastructure development has been completed in the past 12 months, we still have $3.4 billion worth of projects currently under construction and a further $7.2 billion planned.“These projects are being delivered across a wide array of sectors ranging from transport, education and health to retirement, commercial and cultural.“The data reflects the Gold Coast’s diversifying economy and demonstrates that there is plenty of growth yet to come for the city.”