What’s Happening in the Gold Coast
The Gold Coast is currently in a construction boom. This is an area that in the past has seen some wild ups and downs. Gold Coast builders are capitalising on this. With the impact of the coming Commonwealth Games and further infrastructure projects there is a real resurgence in the area. Brisbane has been coming off a recent high and now many trades and builders are picking up work down the coast where population growth is expanding quickly.
Valuations have been increasing and projects coming through or back to the table are starting to increase. The coming Commonwealth Games and the associated infrastructure including light rail has helped kick start the market.
Buyer activity here is very strong. Some say they are seeing the same thing which happened in Sydney in 2012 happening now in the Gold Coast. This is positive as the townhouse and apartment market went backwards between 2009 and 2014. The Gold Coast is expected to outperform everyone in 2017/2018 with the house price growth well into the double digits. Source: News Corp Australia.
Suburbs of the Gold Coast including Pimpama and Coomera have had huge population growth in the last two years. This can be related to the release of land and has increased construction of new homes, townhouses and apartments. Pimpama’s and Coomera’s population grew by 35% and 11.3% respectively, which are huge numbers and unsustainable. The Gold Coast population as a whole grew by 2.2% to 582,215.
The rapid growth of the city’s north is set to trigger a redrawing of the city’s divisional boundaries and has led to calls for more infrastructure to be allocated to the rapidly growing area.
There are number of infrastructure and large projects which have spured on the growth in the Gold Coast. Along with all the works associated with the Commonwealth Games including stage three of the light rail, the athletes village and the cultural precinct in Evandale there are a number of significant projects underway.
Coomera town centre is a $1 billion development that is now approved and set to get started. Spirit is a high rise development that will dominate as the tallest building in the southern hemisphere and is expected to open in 2020. Empire Estate is a $1 billion industrial estate in Yatala under construction which will facilitate major international company operations. Work is set to begin next year on the M1 upgrade between Mudgeeraba and Reedy Creek as part of a $500m roads package.
On top of this there is the mayors proposed cruise ship terminal and the ASF integrated resort on the Spit valued at $3bn but both are controversial developments at the moment.
There was a good article written by Domain describing what is behind the boom in the Gold Coast in some more detail. This details some further projects and drivers of the growth.
On the Brisbane Development.com website there is a useful Gold Coast Development Map detailing current projects and locations. Included is the stage of each project.
Gold Coast Construction Costs
Gold Coast Builders
The construction boom in the Gold Coast is still a delicate thing. Construction companies in the south east of Queensland have been operating on low, single figure margins since the financial crisis. It doesn’t take much for financial stress and then collapse to befall a builder should some unexpected costs hit the project.
A recent insolvency report by SV Partners showed that 84 Gold Coast builders are on the brink of collapse. In recent months this has occurred to Ware Building and Queensland One Homes.
While it is always tempting to go with the cheapest quote, it is better to focus on a Gold Coast builders financial position, growth strategy and current works. Choosing a higher price from a better builder will reduce your risk exposure in this difficult time for builders.
Construction Costs - Gold Coast Builders
Construction costs for townhouses and apartments have increased over the last couple of years but are now stabilising. With the reduction of work in Brisbane, trades have been pricing more competitively and staying local to the Gold Coast rather than travelling north.
Basic townhouses can start at $200k per unit up to $300k per unit with basements for mid range product. Four years ago we had apartments built for $170k per unit. Now this starting point is closer to $210k for simplistic design and low finishes and can get much higher depending on your product. A recent medium finish apartment building close to Surfers Paradise will be constructed for around $310k per unit. This includes a basement and some design elements that improve the uniqueness of the project.
From houses to townhouses to apartments our Gold Coast builders builders will improve your network and project outcome.
We also have builders who have worked in the surrounding areas like Pimpama, Coomera and Logan.