The retail sector at the southern end of the Gold Coast is tipped to soar when the next stage of the city’s light rail project is completed.
The federal government last week announced an extra $157 million for stage three of the light rail network, which will see trams extend from Broadbeach South to Burleigh Heads. This adds to the $351 million that the state government has promised for the next stage and $92 million from the council. Work is expected to begin straight away.
Stage one was completed in July 2014, from Gold Coast University Hospital to Broadbeach South. Stage two was a 7.3-kilometre extension from the hospital to Helensvale Station in the northern Gold Coast and opened in December 2018.
Knight Frank associate director retail leasing Tanaka Jabangwe said the new light rail extension would encourage more tourists to venture south from the traditional retail precincts of Surfers Paradise and Broadbeach.
Disruption from construction of the project was likely to be less pronounced than the first stage in particular, given the lower density of retail in the southern Gold Coast region, he said.
“The stage 3A extension of the light rail will be a vital piece of infrastructure for the Gold Coast as it will connect heavy rail from Helensvale Station to the precincts of Southport, Surfers Paradise and Broadbeach, and all the way south through to Burleigh Heads,” Mr Jabangwe said.
“Ease of access across the city will generate economic growth for retail businesses in the southern Gold Coast catchment.”
He said local retailers would be able to claim a bigger slice of the estimated $5 billion spend that comes from nearly 13 million domestic and international tourists to the Gold Coast each year.
One of the big winners from the project is expected to be Burleigh Heads, according to Herron Todd White valuer Ryan Kohler.
He said the suburb’s retail sector was currently performing well because of strong local patronage but was likely to strengthen further following the project’s completion.
Mr Kohler said local retailers should be positive about the extension, but they might expect some disruption during construction.
“The light rail will galvanise the long-term relevance of these areas, making access more convenient for those from further afield and will also encourage tourists to venture further south,” he said.
“From a town-planning perspective, it is not unreasonable to expect there will also be some long-term befits as well, as council may be supportive of higher density development around the future stations.”
Brodie Millwood, general manager of popular Burleigh Heads eatery Justin Lane, said the light rail was a positive for the retail sector, but he had concerns about the impact of construction on local businesses.
“The Gold Coast is growing up, there’s a huge number of people moving here. We need a public transport system that can deal with this. This is a step in the right direction,” Mr Millwood said.
“The major concern prior to completion is the impact that the construction will have. For us, at least, I believe that the construction is on the other side of the road, so potentially we may be protected from its negative impacts a little.”
JLL Australia retail investments senior director Jacob Swan said the Gold Coast light rail project had generally helped to increase foot traffic as well as drive new retail openings along its corridor.
He said more tourists and international students as well as events and festivals had been coming to the Gold Coast following the launch of the project.
“The dedicated Gold Coast light rail corridor has been a catalyst for development, with the ‘light rail growth corridor’ driving growth in capital values and higher levels of redevelopment activity,” Mr Swan said.
“Transport infrastructure projects can have a very positive impact on retail real estate values by improving connectivity and access for consumers.
“It typically spurs investment and development for surrounding property and drives a revitalisation of an area.”
Gold Coast’s $ 4 million penthouse
THE Gold Coast’s prestige real estate market got off to a flying start in 2020, selling a trophy penthouse for $ 4 million.
Paid-out Brisbane buyers are buying the sprawling four-bedroom residence in the One Palm Beach development, with completion expected later this month.
Harcourts Coastal’s Tolemy Stevens, who handled the sale, said buyers would use the property as a vacation home.
“The buyers looked at Main Beach, Broadbeach and Mermaid Beach, but ended up in Palm Beach,” said Stevens.
“They loved the size of the penthouse, the fact that it took up the entire level and that they were on the eighth floor and still felt connected to the beach.”
The 466 m² penthouse is located on the top floor and offers a 360-degree view of the Gold Coast.
A media room, a butler’s pantry, an all-round deck and state-of-the-art equipment are among the outstanding features.
Mr. Stevens said the properties on the southern end of the coast are very exciting.
“It shows that Palm Beach is definitely in the spotlight and is becoming more popular over the years,” he said.
“Instead of Main Beach, Surfers Paradise and Broadbeach, buyers are welcome to expand their search criteria, which we didn’t see five years ago.”
The Velocity Property Group developed One Palm Beach with 17 apartments, including the penthouse.
National sales manager Caroline Humbert said the penthouse on the beach would be a fantastic vacation home for the buyer due to its location, space, and views.
“We are thrilled that the buyer can call this incredible 466-square-meter penthouse with four bedrooms, including four parking spaces, an escape to the Gold Coast,” she said.
Ms. Humbert said the Velocity Property Group recognized the unique properties of Palm Beach a few years ago, including the emerging lifestyle factors of restaurants and retail.
One Palm Beach was recognized as a finalist at the UDIA Queensland Awards for Excellence in late 2019.
The average apartment price in Palm Beach is $ 457,750, according to realestate.com
Hot tips for buyers and sellers of Gold Coast in 2020
If you’re targeting new property for next year, it may be time to think about 2019 and how much the market has changed.
A nationwide downturn and low interest rates were the two big reasons why agents say buyers can get the most out of the conditions but need to act quickly.
John Newlands, director of the Real Estate Institute in Queensland on the Gold Coast, said buyers had regained their confidence after a shaky start to the year.
Mr Newlands said that since the election and the Royal Banking Commission, buyers have returned and realistic sellers can benefit from their willingness to buy.
“Lenders have settled in and there are very low interest rates for buyers,” he said.
“The infrastructure on the Gold Coast gives us more depth than in the past.
“Sellers need to be realistic and don’t think prices will go up.
“It’s a healthy market (on the way to 2020), you don’t have to be above the market, you have to be in tune with it.”
Mr. Newlands said good marketing and presentation are key for providers.
Michael Kollosche, director of the self-titled agency, said there will be limited stocks in the Gold Coast market by 2020, which means that both buyers and sellers should change their approach.
“Buyers who want to buy property have to be a little more aggressive,” he said.
“It is definitely the impression that the market is moving upwards. If you are not in a hurry, you will probably regret it as you see property prices go up and pay more for inferior properties.”
According to Kollosche, low interest rates have been a catalyst for sellers to keep their properties, resulting in a lack of supply and slowly rising prices.
“We find that most sellers see increased interest in the first three to four weeks (after the listing),” he said. “Premium buyers usually appear at the start of the campaign.
“It is important that you carefully consider the price and sales method when you first come to the market. “
Government Bans High-Rise Development at The Spit
All future high-rise developments along The Spit will be restricted to a three-storey limit following community backlash against the masterplan.
More than 23,000 pieces of feedback were submitted during an 18-month masterplanning process, prompting the state government to change regulations for the area.
Originally The Spit’s masterplan for an “Ocean Park” included turning 140-hectares into light rail stations, super-yacht berths, and a proposal for an ocean cruise ship terminal.
While The Spit masterplan was drafted, ASX-listed developer Sunland withdrew an application for a proposed $600 million residential project on the site which included two 44-storey towers.
Last month Sunland put the 3.9-hectare Mariner’s Cove retail village and marina precinct on the market.
Minister for Planning Cameron Dick said the changes were made because The Spit had an unsurpassed natural beauty that the Gold Coast community was rightly passionate about.
“The message was clear: the community broadly supported a three-storey height limit being imposed,” he said.
“The new regulation delivers on our commitment to support the community’s expectation for low-rise development on The Spit.”
Amendments were made to the Planning Regulation 2017 to prohibit development over three-storeys or 15 metres.
“The height limit will apply to buildings and structures within the building height control area, including Sea World, Sheraton Mirage and all land south towards Southport Yacht Club,” Dick said.
“Outdoor rides within Sea World will be exempt from the height limit, however, new buildings in the theme park will have to adhere to the three-storey limit.
“This regulation change will ensure future development integrates with the existing landscape and maintains the prominence of The Spit’s natural values.”
Gold Coast Waterways Authority chief executive Hal Morris said they would be collaborating on the implementation of the masterplan.
“The waters and foreshores around The Spit are a real asset, so it’s important the connection between the land and water is maintained,” he said.
City of Gold Coast mayor Tom Tate welcomed the news and said council’s $35 million investment for transport and access upgrades along The Spit would also improve the visitor experience for locals and tourists alike.
“Maintaining the height limit will ensure the natural character and charm of The Spit continues in line with community expectations,” he said.
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