My business partner in Projectadvice.com.au, Paul Broad, and I have completed about a dozen project advice investigations since we pooled our resources in this space from August last year.
Our latest work involved in-depth project positioning for a unique top-end apartment offering on the Gold Coast. Somewhat pioneering stuff.
Our client has given us permission to share some of the generic findings.
1. Some key stuff
- The Gold Coast market is much larger than many realise. It is the sixth largest urban area (in terms of resident population) in Australia and is also the country’s fifth biggest tourist market.
- And the Gold Coast’s growth is expected to accelerate in coming years. For example, over the last decade the Gold Coast grew by 12,500 new residents per year. This annual increase is expected to increase to 14,750 over the next ten years, yet current growth rates exceed 17,500 per annum.
- Assuming the projected increase occurs, this means that there is a need to build about 6,000 new dwellings per annum. And importantly half of this new housing demand will come from three housing segments being downsizers, retirees and aged households.
- Yet the housing market is undersupplied with the right stock and also future development sites. Our table below outlines the current state of play when it comes to major apartment development on the Gold Coast.
Gold Coast: Status of new apartment projects
|Project status||No. of
|No. of apartments||% by apartments*|
|Site for sale||18||4,994|
|Projectadvice.com.au + BCI Australia. Includes new apartment projects with either 40+ apartments or a gross realisation of over $20 million. * Excludes recently completed projects. ** Over the next two to three years, being between financial 2019 and 2021.|
- This table shows that there are some 200 major apartment projects currently mooted across the Gold Coast. These projects total some 44,300 apartments. However, just 10% of this stock is under construction; with a further 28% or 12,500 apartments of this count potentially taking place over the next three years. At present about half (49%) of these 200 projects are currently shelved.
To get a copy of our full Gold Coast Major Apartment Development List email me on firstname.lastname@example.org
- There is a growing demand for higher density living and especially apartments that cater for the 60+ age group. However, our work shows that most of the new apartments built on the Gold Coast in recent years have been small. The same trend applies to the proposed stock.
- Many in this target market are well-heeled and are looking for larger apartments, in high quality projects which offer security, the appropriate amenity and an opportunity to live with ‘similar’ people. They don’t want to live with tourists or in buildings with multiple-tenanted rentals.
- Understanding the psychographics here are as important as the demographics.
In summary, the Gold Coast is facing a severe shortage of appropriate developable land and the current crop of proposals offer small apartments, which largely target negatively geared investors and offer very little in the way of amenity or points of difference.
Projectadvice.com.au is a collaboration between independent property analysts Michael Matusik and Paul Broad.
Collectively we have helped over 1,000 new housing projects come to fruition.
We have been in this business for almost 30 years.
Our involvement is designed to help get your project right – from the very start – through advice and collaboration – as to the type of residential project best suited to the area’s population and demographic characteristics, the site’s locational attributes and prevailing market conditions.
Our projectadvice service helps developers, and those working on their behalf, deliver better housing projects.
For more about projectadvice click here.
Until next time,