Gold Coast light rail to create giant high-rises on highway 60s motel owners face crash

Gold Coasters hoping to cash in on the light rail-generated property boom face losing out on millions of dollars thanks to a major change being considered.

THE owners of ageing 1960s-era Gold Coast Highway motels will be prevented from cashing-in on the light rail extension, a leading real estate agent warns.

The Gold Coast City Council is reviewing changes to the City Plan that will include greater setbacks.

Residents have called for the changes in a bid to temper overdevelopment and loss of liveability.

Potential changes to the City Plan mean these sites will be harder to develop in the future. Picture: Richard Gosling

But commercial sales specialist Adam Grbcic, of real estate firm Kollosche, said the changes would have a “disastrous impact” on motel development sites and drive up property prices even further.

“Some motel owners have attempted to turn to development to take advantage of the booming market,” he said.

“But these changes would undoubtedly make it much more difficult for developers to deliver new housing or low-to-mid-rise unit developments in these precincts on smaller land blocks, ranging between 405sq m and 650sq m.

Council is considering changes to the City Plan. Picture by Richard Gosling

“Unfortunately, development opportunities would be lost because projects cannot stack up with these setbacks in place.

“Motel property owners would lose the development upside that currently exists and is the silver lining for the struggling industry, as they would likely be unable to sell to developers for the highest and best use of the property.”

Tower development along the Gold Coast Highway has increased on the back of plans to extend the light rail from Broadbeach to Burleigh. Many more are expected in the next decade, although high-rises in Nobby Beach have been ruled out.

Adam Grbcic. Picture: Jerad Williams

Mr Grbcic said the redevelopment of motel properties was “a win-win for the Gold Coast”.

“Not only does it deliver much-needed medium-density housing for the growing population, but it also offers motel property owners the chance to cash out and reinvest their money elsewhere,” he said.

Council planning boss Cr Cameron Caldwell said any speculation over proposed changes was “premature”.

“Council has undertaken a number of community reference group exercises, feedback from which will inform future amendments to the City Plan,” he said.

“It is too early to speculate the fine grain of any future changes.”

Many of the ageing highway motels have sold for multimillion-dollar sums in the past five years.

Developer Beanfrog, headed by 35-year-old Matthew John Barrett, filed plans with the Gold Coast City Council in January to demolish the Horizons Motel in Mermaid Beach and replace it with a luxury seven-storey building.

Where will be affected by light rail tower height increase

The Bulletin can reveal building heights for the new Broadbeach to Burleigh tram line after community surveying and focus group meetings involving residents and business operators.

The ocean-side stretch between Christine Avenue and Burleigh Heads State School will be home to 18-storey towers as part of the light rail extension from Broadbeach.

Key outcomes are:

* from the Christine Avenue station south to the Burleigh Heads State School near Fifth Ave, the eastern side of the Gold Coast Highway will cater for “higher residential intensity” of 11-18 storeys.

* around the tram stations the height will be in the medium-density range of up to 10 storeys.* some commercial areas on the western side of the highway will have similar medium-density, but those taller buildings only stretch back two blocks.

* further west, the current two-level threshold will reach up to 15m or four storeys.

* residents asked for better parks, to retain neighbourhood character and street greening.

* major concerns surfaced about the trams preventing them from connecting with the beach.

* serious fears about safety at night, followed by car parking and traffic issues.

The feedback will considered by councillors at a planning committee meeting on Thursday before the draft is sent to senior council officers for a final plan.

Focus group notes show residents pushed for lower heights, even down to four levels on the western side fronting the highway to allow for more “green” with landscaped grounds.

“Five to seven storeys is already a massive change to character of this neighbourhood, three to five would be more in line with community expectations,” a resident wrote.

Another resident wrote: “People are conservative and we reflect community concerns by recommending lower limits.”

Gold Coast trams: New council mapping show density heights Broadbeach to Burleigh.

Transport committee chair and area councillor Pauline Young said increased density with taller buildings was occurring around Nobby Beach to Burleigh before light rail had begun.

“There’s already existing height limits in place,” she said.

“We are not proposing to pull those back. It is anticipated that we will still have applications and approvals come through.

“Along the western side of the highway up around parts of Mermaid, Nobby and Miami, not solid all the way through because obviously you have established areas like Miami One shops. It could potentially be 8 to 10 storeys in some areas and four to six storeys in others.

“Refreshingly enough, during community consultation focus groups identified that people are aware that density is coming and they know we are going to have uplift in the area.

“They just don’t want it to be a solid blanket right across the whole corridor. They looked at areas around the light rail station that could sustain uplift, four to six or six to eight-storey buildings and bleeding back into the suburbs as you reduce your height.”

Cr Young said residents wanted more than incorporating vegetation in the buildings. They included wider footpaths, streetscaping, community facilities (bench seats) and shaded areas.

“This is just Stage 1. It will go to public consultation. This whole process will probably take at least 12 to 18 months, and is intended to support a future City Plan amendment.”

Originally published as Gold Coast light rail to create giant high-rises on highway 60s motel owners face crash