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  • Gold Coast leads wave of projects

    Gold Coast leads wave of projects

    Fiona Cameron | April 24, 2008

    NEW research has quashed predictions of a Queensland property downturn, with data showing more than $4 billion of construction planned this year and $1.15billion of new Gold Coast apartment proposals.

    A soaring number of office developments - up 71 per cent in two years - has pushed the value of the state's planned construction this year to $4.02 billion, higher than the previous two years.

    According to Construction Forecasting Council data, the figure was $3.9 billion in 2007 and $3.4 billion in 2006. Colliers International commercial research manager Helen Swanson said the research - covering industrial, office and retail sectors - showed Queensland's growth was not slowing.

    Meanwhile, separate research from Colliers International on the Gold Coast shows no sign of waning developer enthusiasm, with $1.15 billion of new luxury apartment projects released in the past four months.

    Brinton Keath, Colliers' director of project marketing, said the bullish market releases and subsequent sales success showed the underlying drivers of the Gold Coast residential market were solid.

    Newly released projects included the $700 million Hilton Surfers Paradise and Residences, Reve on River Terrace ($170 million), Surf 120 ($42 million), Coast ($100 million) Pure ($90 million) and Eden ($27 million).

    Hilton Surfers Paradise recorded $120 million of apartment sales in three months, and developer Raptis Group had brought forward the second and final stage.

    Macquarie Real Estate Equity Funds launched its Coast project at Labrador last week, following other Gold Coast projects it has at varying stages, including the almost-completed $95 million Kirra Surf and $51million XXV it launched last year at Main Beach.

    Mr Keath said projects with generous lead times until settlement had been the best performers.

    "Smart investors are taking advantage of the current environment, knowing the future outlook is positive," he said.

    Mr Keath said much of the recent negative market sentiment nationally had been centred on mortgage stress, but he said Reserve Bank data showed "mortgage delinquencies actually went down last year and were most prevalent in NSW, particularly western Sydney".

    Demand for new dwellings in the region was about 5500 per year, underpinned by the 15,000 people who moved to the Gold Coast each year.

    "Current building approvals and production forecasts currently estimate a 15 to 20 per cent shortage this year, pointing to undersupply," Mr Keath said.

    "Couple this with the fact that investors are spooked by the recent volatility of the share market, residential property developers have every reason to be confident that the outlook for the property market is very good.

    "These will all serve to keep upwards pressure on prices in the immediate future."

    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  • #2
    And they're right. Property here is just constantly under supplied, so it keeps increasing in value. I hate that :-)


    • #3

      Prime property keeps going up. However some of the new projects are commanding over 10,000 per square metre. Holiday apartments do not make good investments for that you need strong and constant rental demand. I have spoken to people who own apartments in Q1 and they tell me that they struggling with the repayrments compared to the rents. The gross returns are low and the body coraparates are very high. Do you research carefully. Waterfront homes have held up well and many apartments on high floors facing the ocean, but it does not mean that they are ideal investments.


      • #4
        Central Gold coast is up to 16K SQM now in several buildings. Buying the right property is essential anywhere in the world.


        • #5
          That does not mean that the resales will equal 16k. In Melbourne the latest quartly figure shows a drop of over 8.4% in the value of property. I am sure that once interest rates start on the downward path again the market will move strongly.


          • #6
            On Sixty Minutes Australia

            This story was aired yesterday on Australia TV. This is the transcript.
            Dean Letfus (poomba) and Nigel Kibel are all encouraging us to invest over there. I am curious to know if this is another media beat up or what?

            House of cards
            Sunday, May 11, 2008

            Reporter: Peter Overton

            Producer: Hugh Nailon

            Hold on tight, because it's about to hit hard.

            The great mortgage meltdown is coming.

            Already record numbers of Australian homebuyers are going to the wall.

            And, if we're to believe some experts, there's a hell of a lot more pain to come.

            So who's to blame?

            Now read on:

            OllyN [email protected]
            Independent Property Consultant
            Residential and Commercial Solutions