Why Gold Coast Is Trumping Other Coastal Luxury Real Estate Markets

Why Gold Coast Is Trumping Other Coastal Luxury Real Estate Markets Manish Khanna
Manish Khanna
Monday 26 Jun 2017

Gold Coast is in a rush to reclaim a top spot in the coveted luxury residential real estate market. Ranked one of the top tourist destinations currently and because it is set to host the Commonwealth games in 2018, the sunshine city has been witnessing a lot of real estate activity. Spearheading this charge for new luxury properties on the Gold Coast are Chinese real estate moguls, Wanda and Forise.

On one edge of the market, Wanda is about to complete their third tower at Surfers Paradise that is part of their $1 billion-plus Jewel development. But this won’t be all that the paradise will have to offer as Forise is also busy setting up, the Spirit, a landmark skyscraper that threatens to dwarf the current Queensland residential landmark, Q1.

And at the heart of the city, Sunland property developers also seem to be gearing up for the bid to take Gold Coast residents up in the air. Just after the acquisition of a beachside site at the prestigious Hedges Avenue, Sunland just presented a proposal to erect a 40-storey residential tower.

There is more to the New Luxury Properties on the Gold Coast that height.

However, while it seems like a competition on who takes their Gold Coast residents higher, the tune is quite different from inside these luxurious residential spaces. From inside these scrapers, each developer seems to be embattled in coming up with unique features in a bid to woo the buyers. From panoramic views to excellent service and oversized living areas as well as tossing a live and play environment in the mix are some of the key features the developers hope to use in enticing buyers. 

For instance, while addressing TheAustralian, Baron Li, the Wanda Ridong Director exuded confidence on how his company’s jewel designed tower seeks to revolutionise the Australian residential market. He observed that it would be home to several first-ever in Gold Coast, a fact that he believes will be crucial in making the 108-apartment building the most exclusive address in the sunshine city.

What should you expect from Wanda’s jewel designed third tower?

Unlike most other new luxury properties on the Gold Coast, Sydney even, the triple tower resort will have a private beachfront entrance. The residence will also be strategically positioned to provide the greatest views of the beach on one front and the captivating city below on the other.

In a surprisingly bold move that’s also a significant shift from the norm for most beach luxury homes, the tower management won’t allow holiday letting. According to Wanda, the move is aimed at guaranteeing its residents an undisrupted and almost permanent retreat from the city below. 

Wanda’s strongest marketing point will, however, be the all-new around the clock concierge services offered to the residents. From Tower Three’s private lobby, Mr. Li said added that “residents of these 108 apartments can easily pick up the phone and get whatever they want.”

What does this mean to potential Tower Three residents?

It implies that, should you ever fall prey to a midnight craving that’s not in your fridge, need your oldies on a surprise visit picked from the airport or “something grander like organising a chopper ride over the coastline for a special date,” Li argued that the residents will be able to call on the concierge at any time of the day and have their “every whim” taken care of.

Current trends in the Gold Coast residential property market

What price would you attach to such comfort and luxury, not forgetting their oversized nature and heights that offer excellent panoramic views? 

To a considerable extent, the value of new luxury properties on the Gold Coast has soared consistently since mid-2013. And with the city set to host the Commonwealth games, attention has shifted from Sydney’s luxury apartments to the ones in Queensland’s beach frontier city. 

According to CoreLogic’s real estate statistics for the Gold Coast final quarter for 2016, the region recorded 5.5 percent increase in the median house prices. And as the countdown to the games narrows down further, the price is set to shoot tremendously. 

Some real estate moguls in Gold Coast like John McGrath, have even predicted a double-digit increase in home prices across the board in the next twelve months. This couldn’t be far from the truth as most luxury homes are reportedly clocking over 30 percent price increase.

What does this mean for the upcoming luxury homes?

When you think of the attention that the Gold Coast luxury home’s market has been receiving in the recent past, increased tourism, and the flexed city housing regulations. Everything seems to be working in favour of current real estate developers for the new luxury properties on the Gold Coast.

Add this to the fact that such proprietors are introducing a new world-class touch to their luxury homes and you should expect both Wanda and Forise to attach an interesting figure to their homes. Plus going with the kind of amenities they have introduced to the Gold coast’s luxury homes sphere, it is no secret that they strategically expect to appeal to the global high class.

For Wanda, a 202 to 270 sq. m, three-bedroomed apartment with a 180-degree panoramic view from Tower Three will start from $3.98 Million. The two and one-bedroom apartments in the same tower will, on the other hand, start at $2.56 million and $1.1 million respectively. Nonetheless, this hasn’t stopped over 120 individuals drawn from all walks of life to register an expression of interest for one of either one of these tower three units.

While Forise hasn’t explicitly stated the prices for the apartments on their landmark building, one can easily use the current floor size sales prices for similar new luxury properties on the Gold Coast to estimate their pricing. 

According to Forise Australian representative, lawyer Tony Hickey, the strongest marketing point for the units on The Spirit will be their spaciousness that he believes will exceed the average Sydney and Melbourne apartments. A one bedroom unit on the 42 meters deep landmark will span 95 sq. m with their two bedroom counterparts covering up to 155 sq. m. 

The Forise landmark, commonly referred to as the Iluka, will also house one of the biggest penthouses in the larger Australia, spreading over two complete floors and spanning 874 sq m. Based on these facts, the oversized units are expected to easily surpass the $15,000 per sq m mark. But according to Hickey, this isn’t much compared to how “the place is changing.” He also adds that gold coast residents and real estate enthusiast need to “watch this space.”

Bottom line

  

The Gold Coast residential real estate market, one of the worst hit by the global economic collapse of 2008, is literally rising higher and higher above ground, again. And the investments by the Chinese into the sunshine city haven’t just rekindled life in the southern coast; they have also come as a wake-up call and a challenge to the current crop of developers in the city. It will, therefore, be interesting to see if the current investor rhythm will increase and what direction the market for new luxury properties on the Gold Coast will take in terms of both amenities on offer and pricing.