71 Market Update

2021 WITH STEVE HUNT | MEDIAHUNT.COM.AU MARKET UPDATE

Iris Capital – ‘Victoria and Albert’, Broadbeach Little Projects – ‘Aperture’, Broadbeach

Sammut Group – ‘Coast’, Surfers Paradise SPG Land – ‘Paradiso Place’, Surfers Paradise

NEW MONEY

Southern developers are heading up some of the biggest projects to hit the Gold Coast.

BRACE YOURSELVES, The Mexican Wave is coming.

Freedom starved southerners are on their way to Queensland, and when we think of a second wave, it won’t be in relation to the pandemic.

It will be in the form of the next phase of the boom that Queensland, and particularly the south-east, has been experiencing for the last 18 months.

Victorian and NSW buyers still make up the highest proportion of investors to the Gold Coast – representing some 20 per cent of the buyers in the second quarter.

And in a sign of the resilience of the Gold Coast market, some 56 per cent of all buyers in off the plan product are owner occupiers – a market that is traditionally dominated by investors.

The latest research compiled by Colliers Gold Coast reports a breakdown of data from projects marketed by Colliers has shown owner-occupiers are the overwhelming drivers of apartment market sales on the Gold Coast.

Of the buyers from south-east Queensland, more than 85 per cent are owner-occupiers.

Another interesting observation we have made is the amount of ‘big money’ coming into the south-east.

Not that the big money hasn’t been here. One only has to think of Australia’s high-rise king Harry Triguboff, who has made the Gold Coast a happy hunting ground.

But Triguboff has doubled down with another site in Surfers Paradise in a strong indicator of his view of the region’s future in a post lockdown, open border environment in Queensland.

What is of particular note is the other big players from Victoria and NSW who would never have considered the Gold Coast as part of its investment strategy. Here’s some that spring to mind.

Beckdev, a company founded by the Beck family and chaired by development industry veteran Max Beck, is planning to revive a longlost piece of the Gold Coast’s social history in a landmark residential project at 31-35 McLean Street, Coolangatta, which was home to the Jazzland Dance Palais in the late 1930’s and officially closed in 1951.

The developer is working with BDA Architects to create an architectural innovative design for the high-profile site that will be sympathetic to the nostalgia and history of the location, which will be marketed by CBRE Gold Coast.

The Beck family are renowned for delivering a foray of quality and landmark developments in Sydney and Melbourne, including one of Australia’s most important heritage building restorations in 333 Collins Street in Melbourne.

Abadeen Group – ‘Villea’, Palm Beach

Iris Capital – one of Australia’s largest private hospitality and development groups – has also come to town with intent.

Iris, headed by Sam Arnaout, is currently working with Colliers to launch its $800 million V & A twin tower apartment project on the site of Niecon Plaza in the heart of Broadbeach.

This game changing project will target the mum and dad investors, owner occupiers and lock and leave buyers and will for the first time in more than five years deviate away from the one or two per floor, high end luxury and boutique apartments that have symbolised the Broadbeach market.

“This is one of the most exciting projects on the Gold Coast in many years,” said David Higgins, director of Colliers Gold Coast, which has been appointed as the project marketer for V & A.

“Broadbeach currently has historically low levels of available apartments for sale, V & A Broadbeach will really appeal to those buyers wanting a holiday apartment or to make the move to reside in Broadbeach in what we see as the most walkable village location on the Central Gold Coast.”

Sammut Group is another – a company that has reshaped Cronulla in Sydney’s south has arrived on the Gold Coast with a bang.

Between lodging plans for an ultra-luxury, 35-level tower on Garfield Terrace south of Surfers Paradise, the company has enjoyed more than $110 million in sales and looks set to have a sellout soon in a stunning example of the strength of the luxury beachfront market.

“We’re very keen to establish a presence on the Gold Coast, particularly given the strength of the luxury downsizer market.

“We have worked up plans that we believe will deliver a benchmark for this market not only on the Gold Coast but anywhere in Australia,” said Allen Sammut, Director of Sammut Group.

“To have our debut Gold Coast project welcomed with such ferocity is a sensational result that only reinforces our commitment to delivering a project that exceeds our buyer’s expectations on every front.”

Another company which has firmly entrenched itself on the Gold Coast is Hirsch and Faigen, headed by Daniel Faigen and Richard Hirsch – a company with a billion-dollar portfolio in development, horse racing and the wine industry in Victoria.

Hirsch & Faigen which has spectacularly introduced ‘Emerson’ as its latest Gold Coast endeavour, set to be crowned by a breathtaking $8 million penthouse at Kirra.

The company now has three projects in various stages of development on the Gold Coast, having just unveiled its aspirational venture pitched for Mermaid Beach and completed the sell-out of its debut Hemingway project in Broadbeach.

“The sales across the city have been absolutely incredible,” said Matt George, head of Hirsch & Faigen’s Sales and Marketing.

“The luxury offerings the developers have put forward has clearly resonated with the downsizer market, highlighting that buyers want to be able to embrace the beachside lifestyle fully.”

Sydney’s Abadeen Group has a long track record of success in NSW and has also jumped into its debut Gold Coast project – Villea at Palm Beach – which is more than 70 per cent sold after less than six weeks in market.

“Villea’s fusion of luxury, location and perspective has captivated a unique composition of buyers exclusively from Sydney or local Queensland surrounds,” said Nicholas Clydsdale, CBRE Director of Residential Projects, which is marketing Villea.

“65 per cent of purchases so far have come from Queensland locals, but a considerable 35 per cent of buyers are Sydney residents, which is a rather impressive testament to Abadeen’s reputation which has pursued them into the Gold Coast marketplace.”

SPG Land has also laid out almost $4 million for a sales display for its $800 million Paradiso apartments which will launch soon in northern Surfers Paradise.

The company, headed by long time Australian businessman David Wang who has a multibillion dollar portfolio of projects through Asia, is preparing to create a landmark urban oasis with a jaw-dropping suspended glass-bottom lap pool that will allow residents to float 26 storeys in the air.

In a secluded pocket of southern Broadbeach, Little Projects Co – with links to former Toll Holdings boss Paul Little has unveiled ‘Aperture’ – a boutique range of full floor and double storey apartments in what is an exceptionally rare offering for the Broadbeach market.

“With overseas borders shut, we are continuing to witness interstate buyers flock to the Gold Coast in pursuit of a tropical retreat,” said Jayde Pezet, Executive Director of KM Sales and Marketing, which is marketing Aperture.

“With the development set just moments from the beachfront, and the retail and dining options essentially at its doorstep, it will be the ultimate home for buyers seeking coastal convenience”

This follows the near sell-out of its $200 million Signature apartments at Broadbeach which is nearing completion.

They say follow the smart money, and the smart money has arrived in a profound fashion.

A little anecdote perfectly describes the transformational shift that has occurred in the pandemic environment.

Sam Arnaout – whose portfolio is in the vicinity of $3 billion – was heading to Victoria to expand his business interests when COVID-19 arrived on our shores.

Sam made an immediate U-turn, heading north to the Queensland coast in a massive re-positioning of the business.

“The way the market is heading and how buyers have responded to south-east Queensland has definitely driven our decision to expand further north as opposed to Victoria,” said Mr Arnaout.

“The onslaught of investment and migration into south-east Queensland, the prospect of the Olympics in 2032 and regional growth over the next decade have certainly changed our strategic focus. For us, it’s a no brainer.”

If that isn’t an example of the generational shift from the big players to gain a foothold on the Gold Coast I don’t know what is.

With the borders set to open in coming weeks, a second wave is coming.

Lifestyle starved southerners are heading to Queensland in what will be an incredible period for the south-east property market.

Let’s enjoy the ride.