SSKB’s Development Consulting Team services are best utilised in early design meetings where development product mix and project design is discussed. Our expertise at this stage of the development results in a titling structure, budgets, and by-laws that reduce building operating costs. Efficiencies gained at this stage translate to reduced weekly levies for apartment purchasers and a smooth sales campaign.
The Gold Coast apartment market has been in the ‘doldrums’ for an extended period compared to previous market cycles. In the downturns of the early 1980’s, 1990’s and 2000’s, the low points lasted around 3 years before activity in sales and new projects began to improve. Each property cycle has had a different economic trigger for a return to prosperity and upward trends in the cycle. The after effects of the GFC extended the Gold Coast’s lull to around 5 years.
Most industry commentators have been spruiking ‘green shoots’ stories for a while now. While it may have been a little premature a year ago, SSKB is currently working with a number of developers and consultants in the early planning of residential apartment projects that have very good prospects for construction start or completion within the next 12 – 18 months.
So what was the catalyst for this return to activity?
The unprecedented period of low demand for residential apartments on the Gold Coast has two consequences that are currently benefiting the Gold Coast in the recovery of the property industry.
- DEMAND: Construction has been below the natural demand for housing that comes with the city’s population growth. Now that buyer confidence has returned to the market, this pent up demand is responding to the range of new apartment projects being released for sale. Urbis and the Real Estate Institute of Queensland have both reported an increase in the number of sales of off-the-plan and existing apartments, respectively.
- SUPPLY: The developers entering the market and now releasing new stock on the Gold Coast have not been subjected to the rapid rise in development site purchase prices that we have seen in Sydney, Melbourne and Brisbane. So the apartments for sale on the Gold Coast have a significant price advantage over the capital cities.
The low Australian dollar has a twofold benefit to the Gold Coast economy – it makes us an attractive destination for both the Tourism and Property investment industry. It also underpins the growth of international students who come to the Gold Coast for periods of months or years.
The following table highlights the benefit to the city for continuing to attract international students. 14,000 international students contribute almost as much as our annual International Tourist market.
These students may also be encouraging the investment of Chinese and other Asian development companies in the city.
Source: Study Gold Coast and Tourism Research Australia
Much has been made in the media of our growing links to China, but the reality is that many Asian countries, the United Kingdom and New Zealand property investors are active in our marketplace.
The information in the tables below comes from the Queensland State government records. It tracks the annual purchase value of property by foreign nationals. While we can see a steady growth in capital investment from China, Singapore and Malaysia, the figures do not capture the significant investment reported by real estate agents by people of Asian origin already resident in Australia.
These official figures do highlight the importance of Brisbane and the Gold Coast to these overseas investors.
FOREIGN OWNERSHIP OF LAND REGISTER – International Investment in QLD
Value of annual acquisitions 2013/ 2014
(Categories ranked by top 5 local government areas)
|Gold Coast City||$355,874,825|
We look forward to continuing growth in the Gold Coast apartment markets. The new City Plan has made no secret of the fact that accommodating the future population growth in the city will be largely supported by the residential apartment developers. SSKB Development Consulting and our experienced Community Managers are well placed to support the developers and residents of the next generation of Gold Coast residential apartments.