Builder Solutions has been active in the area for many years now and we know Gold Coast builders you should be talking to. We have builders currently working in this area with years of local knowledge including established trade relationships. We know most of the builders in this area and can recommend the right guys to use.
In a region that can see some wild ups and downs the fatality of builders can be a high percentage of the operators in the market. The builders in the market now have been working largely in the central Brisbane region. Until recently the booming apartment market in Brisbane and surrounds has been increasing their growth. This has also permeated down to the trades which many have been travelling north for this work.
The busy market up north has meant that construction costs for the whole region have been increasing. We have seen unit and townhouse prices increase 10-20% in the last year. This is also impacted by the ever increasing material costs which without fail have their periodical increase. Now that the Brisbane market is cooling builders are looking for work closer to the Gold Coast. Because of this trade prices and build costs are stabilizing.
Builder margins are still very tight in the Gold Coast. Many are still around 5% which can be dangerous territory if you have the wrong builder. For margins like this to be acceptable to quantity surveyors or other financiers the builder needs to show detail and accuracy in their pricing. A total approach to the pricing ensuring variations will not be charged.
There has been a pick up of the Gold coast market recently. 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. We have Gold Coast builders who are very well placed with capacity to provide competitive prices for these coming projects.
Buyer activity is her 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 with the house price growth well into the double digits. Source: News Corp Australia.
Recently there have been some significant builders collapse in South East Queensland. This has been put down to a number of reasons including lack of sales and the tightening of bank lending. Whatever reason Gold Coast builders have been impacted by this as well. Some such as Bloomers and Cullen Group operated in the Gold Coast with great success.
It is expected that their will be many more of these collapses to come. It is crucial that you employ the right due diligence to avoid choosing a builder that will suffer this fate. Our insight and industry knowledge can help you make the right decision. We can provide insight to the risk mitigation that some builders employ and who have the right structure to create a long future.
One of these strategies is a townhouse or apartment builder who builds in other states where growth is stronger. Also builders not doing too many development projects for the same developer is important.
From houses to townhouses to apartments we our builders will improve your network and project outcome. We have builders with in house trades which makes them more competitive in certain elements. Also we have builders who are very close with local trades giving them better prices than other builders or new builders.
We have relationships with some of the longer standing builders in the Gold Coast as well. These guys have weathered the storm of some wild market cycles in this area. This is a result of their risk management and strong client base. Builders who have repeat customers are in good stead to continue their presence because they have a reliable stream of work. Nearly all of our builders come from referral by these regular developers.
Not long ago our builder was able to provide an excellent $190,000 per apartment for a project north of Surfers. The clients budget was tight but we knew the right guy for these straight forward designs. The Gold Coast builder was also looking aggressively for work which meant they priced really well.
With the number of units going up in the area it is important to have a builder that makes yours stand out.
We have provided builders for 28 apartments in Surfers Paradise, 15 apartments in Hope Island and townhouses in Robina to name a few projects.