THE PROPERTY DEVELOPMENT REVIEW
Mark: I nfrastructure is critical but challenging due to a lack of workers and geographical constraints. Planning for future growth is essential, even if current projects cause inconvenience. These developments are necessary for the long-term benefit of the city and future generations. The quicker we complete them, the better for everyone. Rob: Historically, the property and health sectors have driven the Gold Coast economy. What industries will propel its growth over the next decade? Mark: Industries supporting lifestyle, like restaurants and retail, will thrive. The focus on work-life balance has increased since COVID, and businesses that enhance lifestyle will do well. Also, industries supporting construction and population growth will be crucial. Beyond construction and tourism, education and medical tourism are growing. Sporting and medical tourism have increased post- Commonwealth Games. Education, like Bond University and other institutions, attracts people. The employment market has diversified, creating stability. It’s a strong period for the Gold Coast, with a stable base and broad employment opportunities. Rob: What’s ahead for the next few months? Do you foresee any changes in transaction activity or sentiment? Nick: We’re open for business with record inquiries and high auction clearance rates. There’s strong demand from interstate and expats moving home. Out of our last ten contracts, four were expats, five were interstate buyers. Locals find it hard to secure the right property. Personally, I’m expecting my third child soon, and we’re excited for the future of the Gold Coast and Northern
with non-approved sites, especially in unpredictable areas like the Tweed Shire. Rob: What’s driving vendors to sell these assets now? Mark: It varies - rent growth and full occupancy make them ideal to sell. Identifying clear upside in properties is key. Rob: For developers or investors from other states, where are the opportunities? Nick: Opportunities lie in areas with growing infrastructure, like new schools and road upgrades. Southern Gold Coast and Northern New South Wales are seeing high demand for residential and commercial spaces due to lifestyle changes post-COVID. These areas are attracting more interstate developers. Rob: Where is the smart money going along the coast? Mark: The southern areas are popular due to lifestyle and quality of life. From Burleigh to the border, there has seen significant investment. Properties in areas like Palm Beach are also highly sought after, while areas like Southport are less in demand. Rob: With 68 cranes along the Gold Coast, have developers missed the boat, or is there still opportunity? Mark: There’s still opportunity if you can build. A stable population ensures ongoing demand. Demand for new apartments remains high, with buyers ready to move in rather than speculate. Rob: What trends are you seeing in retail and industrial sectors? Nick: Industrial land values and rents have doubled in three years due to high demand from both owner-occupiers and investors. There’s a shortage of zoned, flood-free land between the Gold Coast and Brisbane. This scarcity pushes up rents and land values. Cap rates for prime properties are very tight, with recent sales in Burleigh Heads reflecting sub-4% yields. Rob: With the population projected to reach a million people over coming years, what infrastructure improvements are needed to handle this growth? Nick: The light rail is expanding and will eventually connect the entire Gold Coast to Brisbane. Road upgrades, especially the M1, are ongoing, but congestion remains an issue. The light rail will help alleviate some pressure.
Rivers. Mark:
Business-wise, we’re confident. Each sector fluctuates, but the rest of the year looks positive. We face challenges like construction industry impacts and office space shortages, but overall, we’re strong. Personally, I’m heading to Darwin with the Suns and planning a surfing trip with Nick’s dad. Rob: Thanks for your time and insights, Mark and Nick.
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May / June 2024 – 89
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