Gold Rush on Gold Coast, Queensland

Queensland’s Gold Coast, Australia looks set to continue its recent growth: the announcement of a $100 million airport facelift will be coping with the ever-increasing demand for tourism, business and investment into the area.  Experts predict the population will grow by over 50% in the next 15 years and, along with a shortage of quality real estate in the area, prices can only be going one way…

Propertyshowrooms.com Business and Media Manager, Peter Mindenhall, said, “After analysis of the company’s traffic figures for the beginning of the year, the interest in our property in Australia has increased dramatically:  enquiries for January were up by over 125% on the monthly average for last year, with most of the enquiries coming in for Queensland´s Gold Coast and Sydney.”

“The main focus however appears to be on The Gold Coast which is currently enjoying a $42 Billion wave of new development - up from $23 Billion in 2002! The Gold Coast experiences 277 days of sunshine with an average of 27°C. As more people discover this great lifestyle and the massive new development currently underway, valuable investment opportunities are presenting themselves in such an environment of continued growth and real stability.”

Real Estate

The future of the Gold Coast does indeed look bright: the growth of the area in the last five years has been nothing short of astonishing and this is reflected in the local housing market. Quality beachfront property on the Gold Coast is becoming less affordable and more difficult to obtain due to unwavering and ever increasing demand and a rapidly decreasing supply, where properties are being sold out practically on release.

Luxury agent Pacific Lifestyle Property said recently “The Gold Coast beachfront apartment market is very strong and a lack of supply is driving prices skywards. Demand for such luxury property is compounding beachfront growth rates much faster than their surrounding areas”. 

Surfing meccas such as Greenmount Beach and Kirra have been targeted by ambitious developers, eager to stamp their mark on these emerging areas. One project recently released, Nivana by the sea at Kirra Beach sold out its initial release properties in record time, reiterating the desire for beachfront property and the fact that developments are, in some areas, being purchased quicker than they can be built.

Luxury hotel living is also luring buyers in their droves to the Hilton surfers paradise project, with an average of $1.7 million a day being laid on the table for a piece of the Gold Coast high life.  The high-rise developer has locked in sales worth $120 million for the first stage after just 10 weeks of marketing!

Marina berths

Property isn’t the only thing in short supply either: the surging demand for marina berths are pushing leasing rates sky high as marina owners cash in on an undersupply situation.  Research by Colliers International reported in the Gold Coast Business News shows the imbalance between supply and demand is approaching crisis point, beyond which even wealthy boat owners are finding themselves unable to secure a berth due to the severe shortage of stock.  “The Gold Coast remains one of Australia’s favourite boating destinations, however owning a boat and having it moored in a marina over the next decade could prove a lifestyle for a fortunate few,” says Tim Holmes of Colliers International’s Gold Coast office.

“Price may not be a problem for some people, but availability certainly is.  Already we have seen how the lack of supply is driving prices up, particularly in major cities like Sydney and Brisbane, where waterfront house and land is diminishing and people are being placed on long waiting lists for public marina berths. 

“With current legislation banning further canal developments in Queensland, we can only expect this trend to continue,” say Colliers.  In fact, Queensland Transport figures suggest boat ownership in Queensland is growing at a rate of 6% per annum — faster than the State’s population growth. Boat registrations topped 200,000 in January 2006, and a further 100,000 Queensland boat registrations is expected in the next eight years, in line with a trend towards larger and more luxurious watercraft.

Holmes says Gold Coast marina berths are already “far from the cheapest’, with 8m berths ranging from $520 to $800 a month, depending on the facilities and location. Along with real estate and shares, marina berths are a sought-after investment, with many people now looking toward the northern Gold Coast where canal developments are common. Riverfront developments which offer private berth facilities to residents at high quality, secure on-site berths are increasingly popular.”

Airport Expansion

The new look airport will almost double in size, with the capacity to handle twice as many passengers travelling to Australia as current levels.  It will feature 36 check-in terminals and a massive shopping and entertainments precinct. The expansion will of course help increase interest in the Gold Coast, providing greater accessibility for tourism and property investment alike.

But with passenger numbers growing at 8%per year, some experts are already warning it could be back to the drawing board soon, as the airport owners map out the next phase for the facility which could include air bridges.  The Gold Coast Tourism chairman has announced that the current terminal will be expanded from 14,000sqm to 26,000sqm, with the project due for completion by September 2009.

Gold Coast Airport boss, Paul Donovan, lifted the lid on upgrade plans with the preliminary work set to begin next month:

Paul Donovan said the new airport, which received federal government funding last year to serve the Gold Coast for the next 10 years, “We certainly believe we have the right model for the Gold Coast.”  He continued, "Our city is leading the way for Australian destinations and the continued involvement and investment by companies such as Tiger Airways demonstrates a real confidence in the future of our city,"

It´s no surprise to see the airport expanding as last year saw Tiger Air and AirAsia X start flying in and out of the airport, joining Qantas, Jetstar, Jetstar International, Air New Zealand, Virgin Blue and Pacific Blue. In December, a record 374 passengers used the airport, while last year some 3.9 million passed through the terminal.  Meanwhile, it was reported recently in the Gold Coast Business News that the AirAsia X service to the Gold Coast from Malaysia will inject around $50 million into the local economy.  Based on a proposed three flights per week from Kuala Lumpur, the airline is set to have a significant impact on the region's business, conference and accommodation sectors.  Tourism Minister, Margaret Keech, says, “I'm confident the Gold Coast will be a winner. The Gold Coast is well suited as an initial Australian destination, being a natural fit with AirAsia X's focus on leisure travellers,"

In fact, in just five years, Gold Coast Airport has jumped two spots in the rankings and is now the sixth busiest airport in Australia in terms of passenger numbers. 

AirAsia X is a new, long-haul budget airline set to launch flights in the coming months to cities in China, India, the UK and Europe. Its arrival in Australia coincides with low-cost carrier Tiger Airways, which has timed its inaugural flight into the Coast with the peak summer holiday season in November.
Tiger Air will fly 29 weekly direct services from Melbourne into Rockhampton, Mackay and the Gold Coast, competing with Qantas, Virgin and Jetstar for a slice of the budget carrier market.
Gold Coast Airport chief operating officer Paul Donovan says the inclusion of the Asian airline reinforces the increasing appeal of the Gold Coast in the market place and demonstrates the potential organisations such as Tiger Airways see in the growth of the destination.
All in all, the Gold Coast appears to moving in the right direction on all fronts:  the expansion of the airport, growing tourism, a stable economy and a supply of property that is unable to meet with current demand make it a fantastic place to invest as well as live in.  Historically, to make the most of any gold rush, you have to be in the right place at the right time.  In Gold Coast property terms, that time appears to be now.