76 The Great Estate

THE GREAT ESTATE

What’s driving the Gold Coast’s luxury home boom?

WITH AUSTRALIAN PROPERTY PRICES in January achieving record growth and pushing the market past its pre-COVID highs, it’s not surprising that luxury properties are moving at a pace of their own.

Demand has never been stronger for prestige homes, especially the kind that have the trappings of a large family estate, and if the market maintains its momentum this may result in price records tumbling on the Gold Coast in 2021.

The listing of Bellagio La Villa in the Tallebudgera Valley has set the bar high with an asking price of $50 million.

The 49ha property is rare on the Gold Coast, likened by many to a grand European estate. WORDS NICK NICHOLS

For marketing agent Amir Mian, principal of Amir Prestige, the property is the sum of its parts, an amalgamation of five separate dwellings, including the grand residence, as well as stables, manicured lawns and open spaces along the banks of Tallebudgera Creek, with the smaller holdings offering development potential.

“The owner has expanded this holding in recent years and it now offers so much more than you’d find in a large family estate,” he says.

Another home that could set a new Gold Coast record is 26-34 Knightsbridge Parade in Sovereign Islands, an expansive home set across four residential lots that was once listed for $45 million.

The home was passed in at auction late last year on a seller’s bid of $32 million and it has a current asking price of $36 million.

“Either of these properties could set a new price record this year,” says Amir.

Another Queensland high was set last year with the sale of a sprawling modern Isle of Capri property at 41-45 The Promenade, which sold for $27 million.

This price equalled the 2008 price of 33-39 Hedges Avenue, Mermaid Beach, an unfinished beachfront mansion set over four lots.

It followed a $22.6 million sale in May of a beachfront home at 187-191 Hedges Avenue, Mermaid Beach, to billionaire developer Bob Ell and his wife Bridget.

Amir says there are two main triggers driving demand for homes at the top end of the market.

“The first is that since COVID, people now have a completely different perspective on life which is prompting a desire for them to move.

“Once people started working from home, some also realised that their home no longer met their needs.

“It may not necessarily have been the dream home, dream location or the dream lifestyle they always envisaged.

“The second trigger has been access to cheap money as a result of low interest rates.

“As term deposits matured and with cash returns so low, people have sought a place to park their money where returns are better, such as the stock market or the biggest tangible asset available, property.”

There is no dispute that Queensland is drawing a big share of Australia’s interstate migration, but Amir says it is locals who have been driving a lot of the current activity and accounting for more than 60 per cent of the Gold Coast prestige property sales.

“What has disappeared is the international buyer, specifically the Chinese. However, Sydney and Melbourne buyers have filled this gap.

“The 25 per cent that we would sell to internationals is now going to interstate buyers.”

The strength of the upper end of the market was also highlighted by Michael Kollosche, principal of prestige property agency Kollosche, whose team sold six properties priced at more than $11 million each in January alone and recorded more than $180 million in unconditional sales for the month.

Some recent sales include the $25 million sale of a Hampton-inspired beachfront home at 1 Heron Avenue, Mermaid Beach, by Simone and Tony Smith in June last year; the $15.75 million sale of 159 Hedges Avenue, Mermaid Beach; and the $12.5 million sale of 297-299 Monaco Street, Broadbeach Waters in January.

Michael says compared to a year ago, the market for these properties is gaining its stride.

“The uncertainty that we had in the early stages of this market has gone and right now it’s as strong as it’s ever been,” he says. >>

“The events of the past year have definitely fast-tracked decisions by many people to move to the Gold Coast.

“A lot of buyers who were looking to relocate in five years’ time are making that move now.

“It’s certainly a lifestyle change for some, but the Gold Coast is attracting a lot of wealthy families from Melbourne and Sydney who are making the decision to migrate here, or who are looking for holiday homes as a result of the restricted international travel.

“We’re also seeing a large section of the ageing population looking to spend six months of the year here.”

Australian expats are also among those eager to get a foothold in the market either for investment or in preparation for their eventual return home.

“Demand has been supported by the strength of the rental market,” says Michael.

“In this past year there have been movie studios and the likes of Netflix on location here on the Coast because it’s a safe destination with first-class amenities to accommodate them.

“Production companies are consistently paying rents for furnished luxury homes from $10,000 to $50,000 a week for three to ninemonth terms.

“When coupled with high-net-worth investors seeking out three to six-month rentals to escape the southern winter and lockdowns, this has put a strain on the supply of luxury homes for rent.”

Both Amir and Michael agree that listings are harder to find.

While some locals are selling, many more are staying put.

“We’re finding a lot of owners are turning strong offers down,” says Michael.

“They’re not selling because they expect the market to rise even further over the next few years.”

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