ASX-listed Star Entertainment Group has fast-tracked residential sales in Broadbeach, bringing forward construction of the second mixed-use tower at its Broadbeach Island masterplan.
The $500 million skyscraper will deliver 457 apartments over 63-storeys to market, with construction expected to commence in mid-2020.
The fast-tracked release will add to growing confidence in the Gold Coast high-rise residential market, which experienced an uptick in sales over the March quarter.
The Star Queensland managing director Geoff Hogg said the consortium has expedited sales due to demand for real estate on Broadbeach Island. The first residential tower, which kicked off construction last year, has clocked 92 per cent in sales to date.
“The sales success of the first tower and it being under construction gives a lot of people confidence about our masterplan and what we’re doing,” Hogg told The Urban Developer.
“Obviously the market has changed a lot, but until you start selling you’re never quite sure how the market has shifted and where it will come from.
“[But] off the back of tower one we’re confident there’s market demand there and we will know a little more about those trends in the near future.”
The $400 million, 53-storey first tower will deliver a 316-key Dorsett Hotel — the first of its kind in Australia — and 423 residential apartments.
Hogg’s confidence in the Gold Coast extends to the investor market, which he said was still strong.
“Because the pre-sales for one-bedroom apartments went so well, we feel like there may be 50 per cent — or even slightly higher — of sales to investors,” Hogg said.
“Obviously it’s hard for us to gauge until we find out who wants to participate in the letting pool.”
The Star-led Gold Coast Consortium is a joint venture with Far East Consortium and the Hong Kong-based Chow Tai Fook Enterprises. Each partner has a third equity share in both mixed-use towers.
The $2 billion-plus Broadbeach island is home to two existing hotels — the 600-room The Darling, which was opened ahead of the Commonwealth Games, and the recently refurbished Star Grand.
An operator for the 210-key hotel in the second tower will be named in the coming weeks, which Hogg says will be a new hotel brand not available on the Gold Coast.
“It will be a very exciting addition and the fourth hotel available on the island.”
In addition to the construction of the Dorsett Hotel tower and The Star Residences Gold Coast apartment tower, the Star Gold Coast masterplan includes The Darling and has approval for four more towers making it the largest integrated resort in the country.
The Star, Far East Consortium, Chow Tai Fook joint venture has more than $6 billion in development under way including Brisbane’s Queen’s Wharf and West Side Place in Melbourne.
The group is still working through an approval process for a $500 million Ritz-Carlton hotel in the Pyrmont-Darling Harbour precinct.
Three Gold Coast Developers Partner for Four Tower Project
A consortium of Gold Coast developers has set in motion plans to transform an empty site in Varsity Lakes into a giant four-tower complex.
The proposed development has been put forward as a joint venture between Homecorp, Sunland Group and Condev Construction, three of the Gold Coast’s largest property developers.
The 12,916sq m site, which is owned by Sunland, is located between 2-6 Capital Court in Varsity Lakes and will be developed in two stages with two towers delivered in each.
The four tower project, with towers ranging between nine and ten storeys, will comprise 388 units with 99 units each across three of the towers, with the fourth having 89.
The majority will be two bedroom apartments with the rest having a single bedroom.
According to the plans there will be 437 car parks and 164 bicycle parks located inside a three-level basement, as well as 180sq m of commercial and retail tenancies.
Homecorp is led by businessman Ron Bakir has become a major player in the Queensland housing market in a relatively short period.
The company’s construction arm Homecorp Constructions is now ranked the 11th largest builder in the state and among the top three builders based on the Gold Coast.
Sunland is led by managing director Sahba Abedian.
The group has 13 active projects along Australia’s east coast and holds a $3 billion portfolio comprising 4,292 residential homes, urban land lots, multi-storey apartments, and an emerging retail and commercial portfolio.
The company’s Gold Coast projects include the 44-storey 272 Hedges Avenue high-rise residential development in Mermaid Beach and the boutique Magnoli Apartments mid-rise development in Palm Beach
Sunland also recently launched construction of The Lanes development on a 42 hectare site in Clear Island Waters.
Apartment sales uptick
Apartment sales increased to nine per cent of available stock in the second quarter of 2019, up from seven per cent in the previous quarter, according to planning and advisory firm Urbis.
On the Gold Coast, premium apartments typically attracting retirees and people seeking a sea change drove up the average sales price while foreign investors have returned to the market accounting for between 22 and 26 per cent of sales.
Off-the-plan apartment sales on the Gold Coast jumped in the recent quarter to be some 45 per cent higher than the prior quarter.
There were 231 new apartment sales recorded from January to March with two-bedroom, two-bathroom pads made up 65 per cent of sales.
The southern beaches precinct, which stretched from Mermaid Beach to Tweed Heads, had more than 60 per cent of sales for the quarter – the highest level recorded for the area in the past five years.
The national weighted average was $727,333, while the Gold Coast recorded its highest ever figure of $875,817.
Beachfront site opens Gold Coast up to rival development
After three-and-a-half years of negotiations a property developer has amalgamated a large 8400-square-metre beachfront site on the Surfers Paradise strip of the Gold Coast next door to a $1 billion development under construction.
The new site on Old Burleigh Road is directly to the north of Jewel, which has been touted as Australia’s largest beachfront mixed-use development and is under construction by Yuhu Group.
Chinese developer Ridong Group acquired the landmark 1.13 hectare Pacific Beach development site at Surfers Paradise for about $81 million in 2009 and then partnered with property powerhouse Dalian Wanda to develop the towers. Last year Sydney developer Yuhu Group acquired Dalian Wanda’s Australian assets for $1.13 billion, including the Gold Coast development, and recently acquired a 1264-square-metre site to the south.
This latest development site to the north of Jewel, which was amassed by well known Gold Coast property identity Craig Perry, comprises the 21-unit “Mykonos”, 35-unit “Paros on the Beach”, a beachfront duplex and two smaller complexes with four apartments each. In total it includes 66 units and two management rights contracts.
The site covers 8402 square metres and 77 metres of absolute beach frontage.
Mr Perry said his team was exploring the highest and best use for the land.
“The site has been secured by call option contracts while this process is being undertaken. Its sheer size requires us to seek to partner with a funder or developer capable of undertaking a project of this magnitude,” Mr Perry said.
The site is in an area zoned for high density with the possibility of developing a residential or hotel tower with unlimited height restrictions under the Gold Coast City Plan.
Mr Perry would not be drawn on a price, saying it would be disclosed privately to potential partners.
“This is the only beachfront development site of this scale available on the Gold Coast.
“We are looking for a funder or developer that brings value to the table, either as economical or brand value,” Mr Perry added.
For several years Mr Perry, as managing director of Breakwater Group, has also been pursuing the development of a $4.4 billion cruise ship terminal at the Spit, which has been rejected.
Peet Wins Approval for 1700 Lots in Logan Satellite City
The Queensland government has approved the development of 1700 new lots in a $6.7 billion satellite city development in Logan.
The approval, which includes seven different freehold land products under 300sq m, forms part of developer Peet’s Flagstone “satellite city” development.
With Queensland a top destination for interstate migration, it’s expected that up to 50,000 residents are expected to move to the region over the next 25 years.
Part of the priority development area, Flagstone was earmarked by the Queensland government to fast track the supply of affordable housing in what is considered as one of South East Queensland’s fastest growing corridors.
Flagstone, which spans a 100-hectare area, is a joint venture between Perth-based developer Peet Limited and industry superannuation giant MTAA Super.
The approval also takes in Flagstone’s third neighbourhood shopping centre site, a community centre on a 5000sq m site, and a Catholic Private School to be constructed, due to open in 2023.
The development approval also includes a main road extension that will create access into the development via New Beith Road.
Peet Limited chief executive Brendan Gore said the new lot types will be sprinkled through stages two to five, with the company “keen to test the new products in the market”.
“These products will appeal to a broad segment of the market, from singles and couples without children, to young families and empty-nesters,” he said.
“Ensuring that Flagstone can offer a home to suit all.”
Gore said most of the lots will be around 450sq m, with some up to 1000 square metres.
Most of the higher density product will be located in proximity to the main shopping centres and transport hubs.
“Flagstone will be diverse… [so] it needs housing and amenity that will appeal to many different people and lifestyles,” gore said of the project which sits around 50-kilometres south of Brisbane CBD.
“We’ve put careful thought into where these lots will be positioned and each one will be located close to a park.
“Although people want the convenience of a small backyard or no backyard, they don’t want to feel hemmed in so wide streets and lots of open space are important.”
Peet, which has projects across Western Australia, Queensland, Victoria, South Australia, and a few in the ACT, New South Wales and NT, says up to 30 per cent of its Flagstone land, in Stages 2-5 is set aside for public open space.
Greater Flagstone, declared a PDA in 2010, covers a total area of 7188 hectares.
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